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.
