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Choosing the Best Investment Gold Coins

According to statistics, investors prefer precious metal coins over bullion bars.

Why is this so? Perhaps it's because of the fact that coins are available in multiple designs, they are available in various sizes (even fractions of an ounce) and they even have some numismatic value as well.

In fact, due to the numismatic value some coins can be worth tens, hundreds, potentially even thousands of times more than its metal content - if they are rare or special in a way.

Below we'll tell you what to look for, which are the criteria for picking the best investment gold coin to buy...

Why Buy Investment Coins, Not Just "Gold Coins"

Make sure that you buy investment gold coins and not just "gold coins".

Because: there are specific types of coins intended for investment. Those are widely recognized coins in the precious metal investors' and dealers' community.

Other gold coins include: old gold coins (like the ones used by various kingdoms and empires), special edition coins (minted for special events, occasions - such as jubilees, for example). These tend to have less gold in them (their vast majority isn't made of pure gold), but they have numismatic value. Also, these coins tend to cost a lot more than the coins intended for investment.

"Bullion coin" and "investment coin" are the terms used for coins specifically produced for the sake of investing in precious metals.

You might want to check our section about investment gold coins and learn a bit about which are the most recognized, most traded and best quality bullion coins that you can buy.

Investment coins are easier to sell afterwards. They are the purest and there are many new ones minted every year. It's ideal to purchase the new ones, as they have no scratches or damage (as opposed to the old historic coins, which generally bear defects).

After all, you'll be buying for the gold content, that's what you should focus on. Design characteristics and numismatic value are secondary.

Gold Content, Purity

There are bullion coins stating they're "pure gold", but are in fact alloys - despite this, the widely-recognized investment coins, such as the American Gold Eagle, do contain 1 oz of pure gold, just that other metals have been added to them for the sake of hardness.

Focus on 24 k gold coins, if possible. As for purity grading - there are .999 and .9999 coins. Each refers to the percentage of gold in the coin. Some, like the American Gold Buffalo and the Canadian Gold Maple Leaf are .9999 pure, which is an extremely high degree.

Design and Numismatic Value

Obviously, it's ideal to buy coins that you like from the point of view of design. People buy investment coins also for the sake of building collections.

Rare edition coins or other special characteristics confer coins a higher value.

As explained earlier, you should focus on the gold content. But the potential numismatic value shouldn't be neglected either. Rare edition coins do cost more years after. In fact, a 2010 Gold Buffalo will cost more than an identical 2012 edition Gold Buffalo coin.

Costs: Coin Price Over Gold Spot Price

The spot price is the "official price" of gold on the international markets. Of course, a product made of gold will have a higher price than the spot price. 5-7 % over spot is considered a good price, even up to 10 % over spot is acceptable.

If gold's price is (for instance) 1,600 $, then a coin sold for 10 % over spot will cost 1.700 $.

We could say that buying 10 % over spot is the limit where you should stop. If you buy above that price, it's too expensive.

When you re-sell your gold coin, in most cases you will be able to sell at spot price of that particular moment/hour/day. Some dealers will charge commissions and will actually give you a buy-back price below spot. Whereas, auction firms and sites tend to have the highest prices on these coins - well above spot price (eBay is a good example).

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