Boston Bullion

Which Gold Coins and Bars to Buy

3 Main Types of Gold Buyers

There are three main types of gold investors and they each have similar but different reasons for buying gold.

The Gold Investor is looking to buy Gold Bullion at the best price he can. His main concern is a small spread (markup) and easy resale. He would also like the gold to be in a compact, easily secured form. He is hoping to make money as the price of gold rises.

The Gold Collector is looking to purchase gold coins and bars that he finds pleasing. While some are drawn to numismatic coins, many find bullion coins and bars to be just as enjoyable to own. There are several fine collectors series and proof coins available.

The Gold Survivor is worried (with good reason) that the dollar and other world currencies will collapse. The world will be thrown into a struggle for survival where gold and silver will be the preferred medium of trade.

Gold Investor - Buying Gold Coins and Bars for Investment

When buying gold for investment purposes, the American Gold Eagle 1 oz Coin makes the perfect choice. It is easily available and trades at the lowest spread possible. It sells at a small markup to the spot price of gold. It is highly liquid and recognized worldwide. The gold content and purity are guaranteed by the USA. The coin is only minted with gold mined in the USA. For US investors it is the obvious choice.

	Reasons to Buy American Gold Eagles for Investors
	Low markup - Gold Eagles trade for less than 5% over spot
	High Resale Value - Ask prices are typically 3% below Bid prices
	Worldwide liquidity
	Guaranteed by US Government
	Can be stored in a small space using coin tubes
	Alloyed with copper and silver for scratch resistance
	Minted with US mined gold

American Gold Eagles vs. Krugerrands vs. Buffalos vs. Maples

Many investors who are adding physical gold to their portfolio wonder why they should pay a premium for American Gold Eagles when they can buy Gold Krugerrands for about 3% less. Well, when you sell your Krugerrands, they will be worth 3% less than the Eagles. You will realize the same percentage gain or loss on your trade. The truth is, it really doesn't matter which of the major bullion coins you buy. Whether they are .9999 fine gold or contain alloys, they all contain 1 troy ounce of gold. Some dealers will quote Bid/Ask prices that are each about twenty dollars apart. Say 680/700 for an Eagle and 660/680 for a Krugerrand. In that case, it certainly makes more sense to buy the Gold Eagle since the spread is only 2.86% vs 2.94% (20/700 vs 20/680). The premiums over spot for the major bullion 1 ounce coins are fairly consistent. The Australian Lunar Series trades for about $20 over Gold Eagles. Premiums on this series will rise when the Perth Mint stops production in summer 2007. The Chinese Panda Gold 1 oz, American Buffalo Gold 1 oz and the American Eagle Gold 1 oz coins all trade at about the same price. The Canadian Maple Gold 1 oz, Austrian Philharmonic Gold 1 oz, Australian Kangaroo Gold 1 oz and the Pamp Suisse 1oz Gold Bar are about the same price and a little cheaper than the Eagles. Finally, there is the famous South African Krugerrand which trades at the smallest premium over the spot gold price.

American Gold Eagles vs. Gold Bars

Many people think about gold bars when they think about gold. It is something solid and tangible and earthly without the touch of government. A solid shiny gold bar is a beautiful thing. As long as you stick with PAMP Suisse and Credit Suisse Gold Bars you will have no problems with liquidity. Gold Bars are available in sizes from 1 gram to 400 oz. Investors should buy common size gold bars between 1 oz and 10 oz. Gold bars that weigh less than 1 ounce usually carry higher premiums and Gold Bars that weigh more than 10 oz will need to be reassayed when sold. PAMP Suisse has several Gold Bars which work nicely for investors. The PAMP Suisse 1 oz Gold Bar is of the highest quality. They are comparable to the American Gold Eagles. If you need a larger bar, the PAMP Suisse 10 oz Gold Bar will fit the bill nicely. One more great choice is the PAMP Suisse 100 gram Gold Bar. This is an older-style poured gold bar and is a beautiful chunk of gold. The 100 gram Gold Bar is 3.215 oz of pure gold. Only 10 of these and you have a Kilo of Gold! All PAMP Suisse Gold Bars come Mint Sealed and numbered with a matching Certificate of Authenticity.

Gold Collectors - Buying Gold Coins and Bars for Collections

Gold Collectors have many choices when it comes to buying gold. There are several 1 oz Gold Coin Series available for todays collectors.

One of the favorite is the Perth Mint Australian Lunar Series. The one ounce coins are limited to a production run of only 30,000 coins. Premiums for the coins which have already sold out are rising. The sold-out 2001 Lunar Snake Gold 1oz and the 2002 Lunar Horse Gold 1oz trade for $50 to $140 more than the Gold Eagle, while the 2000 Lunar Dragon Gold 1oz sells for a premium of $300 or more. Even better, the Perth Mint has announced that it will stop producing the current Lunar Series in preparation for the release of a new Lunar Series starting with the year of the Rat (actually a mouse) again. This is great news for collectors who hold the series since premiums have nowhere to go but up.

The Chinese Panda Gold 1 oz Coin Series has some beautiful images of Panda Bears. While current year coins are comparable to a Gold Eagle, previous years sometimes trade for a premium. Some years are in great demand. Make sure the Pandas you buy are still in the original mint sealed plastic.

Any of the Major Bullion Coins (Eagle, Buffalo, Maple, Krugerrand, Philharmonic, Kangaroo) will make a nice addition to your collection. You can get one of each! It is interesting to see the different diameters, thicknesses and purities.

There are many World Gold Coins available to collectors and horders of all interests. These include British Sovereigns (.2354 oz) Swiss Francs (.1867 oz) French Angels (.1867 oz) French Roosters (.1867 oz) Austrian/Hungarian 100 Corona (.98 oz) Mexican Gold 50 Peso (1.2 oz). All of these coins are available for a small premium over melt value and any of these coins will look great in your gold collection!

Finally, gold bars are works of art in themselves! We have several customers who collect different types of gold bars exclusively. Especially recommended is the PAMP Suisse 100 gram Gold Bar.

Gold Survivors - Buying Gold Coins and Bars for Survival