Which Gold Coins and Bars to Buy
Gold Bullion is gold, whether in the form of minted coins or bars. Gold
coins are really just round gold bars. They have the gold content and purity
stamped on them like most rectangular bars. Gold coins can be produced by
government or privately owned mints.
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
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
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
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
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.
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.
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,
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
If the end of the world (or the dollar) comes you may need to trade some
of your gold horde for necessities. If that is the case, fractional gold
coins and junk silver coins will be your best bets.
You will want to hold most of your wealth in American
Gold Eagle 1 oz coins for ease of storage. You will also want to have
a good portion of your money in Fractional Gold Eagles (1/10,
1/4, 1/2 oz) as well as 90% Junk Silver Coins. These are US dimes,
quarters and halves that were made before 1965 and cointain 90% Silver.
There is .715 oz of silver per $1.00 face value. The older coins (Mercury
Dimes, Walking Liberty Quarters and Franklin Halves) are preferred because
they are easier to identify. No need to check the date.
Please see our Silver Coins and Bars buying guide at Boston
Bullion for more information on buying silver.