Tuesday, September 10, 2013

Gold Coins: What’s Their Worth and Should I Buy Some?

Given the current state of the U.S. economy, the fiscal instability around the globe, and the uncertainty and fear that seems to be hanging over all of us, it’s really not all that surprising that people are worried about their personal finances and their financial futures. Many financial advisors are encouraging their clients to invest in precious metals, including gold. One option is to purchase gold coins.

There are, generally speaking, two types of gold coins: gold coins for collectors and gold coins for investors. Because we’re talking about financial matters, I’m going to concentrate on those gold coins purchased for investment purposes. Gold coins that are pure bullion – either .999 pure gold or .9999 pure gold are the best investment. Their worth is not in their rarity or condition – unlike collectable gold coins – but in the metal that they contain.

Many mints from around the world, including the U.S. Mint and the Royal Canadian Mint, produce gold coins specifically for investment purposes. The Canadian Gold Maple Leaf coin – the Canadian gold bullion coin – is available in five weights, according to the Royal Canadian Mint’s site.

In America, the U.S. Mint sells the American Gold Eagle coins, which are available in four weights: 1/10 of an ounce, 1/4 of an ounce, 1/2 of an ounce, and 1 ounce. While these gold coins have a face value, their real worth is in the gold they are produced from. Additionally, the American Gold Eagle coins are accepted for inclusion in gold Individual Retirement Accounts (IRAs).

Other gold coins that investors should consider include:
· South African Kugerrands
· Australian Kangaroos
· Austrian Philharmonics

The worth of bullion gold coins is determined by the price of gold on a given day, as well as a small mark-up for transportation, storage, and overhead costs. Therefore, the price may fluctuate a bit depending on the precious metals market and the company that you are purchasing the gold coins from.

Most savvy investors know that they will get the best price on gold coins by shopping online. One precious metals company to consider is Merit Gold: they have extremely low mark-up on their gold coins and have been in business since 1986.

Do your own research, of course, before buying gold coins, but do think about purchasing some for investment purposes. In today’s world, buying gold makes sense.