Anna Stasia
  Mar 19, 2018

Gold is a priceless commodity and can be considered as a sound investment for people who prefer cashing in on trade when the time is right. The value of gold fluctuates direly, which is why investing in gold bullion coins is considered to be less risky since they have no monetary value and can’t be used for numismatic purposes or routine transactions.

Bullion coins are metal alloy coins which vary according to the weight of the metal they’re struck with. The price of gold becomes higher whenever commercial trade regresses and inflation increases. In other times, whenever times become rough and the value of currency decreases in an economy, the price of gold increases significantly.

Similarly, gold bullion coins are looked upon as an investment because they can be bought and sold whenever inflation seeps higher. In addition, the price of gold in gold bullion coins always exceeds the market gold spot price which means that they can be sold for a higher value at all times.

Tips to Investing in and Buying Gold Coins

However, investing in and buying gold coins is a significant risk. Gold bullion coins aren’t bought from the nearest bank, but are traded via dealers or third party authorities. There might be a lot of risk involved while buying gold bullion coins from an unknown stranger, especially if you’re new in the business and don’t know the risks involved in such investments.

In order to make things easier for you to understand, we have mentioned 5 tips for investing in and buying gold coins for you below. Give these a read, and we are sure you’d understand the basics before investing in gold bullion coins.

#1: North American Bullion Coins are Preferred

North American gold bullion coins such as the Canadian Maple Leaf and American Eagle gold coins can be bought and sold in the entire continent, which makes the trade and exchange of these commodities pretty easier.

Unlike certain coins such as South African Krugerrand and the Austrian Vienna Philharmonic gold coins which can be dealt with only outside the US, North American gold bullion coins are preferred since they can be sold within the US and Canada as well.

The American Buffalo gold bullion coin was introduced in 2006 and is considered to be the most expensive gold coin to date. It consists of 24 karats of gold and despite being the purest gold bullion coin to date, traders and dealers prefer dealing with the common North American ones.

#2: Compare the Fluctuations in Spot Prices

There are several metal exchange websites that you can refer to, to find out about the spot price of gold. gold forecast allows you to understand the predictions of gold projections for the current year and the years to come through graphs and tables as well. Financial experts have advised to invest in gold bullion coins for three years before selling them or trading them for paper money.

These metal exchange websites allow you to understand the worth of your gold bullion coin in order to minimize scams and the exceedingly high interests of fraudulent dealers over spot prices. There are several third authority parties who would claim to be trustworthy and therefore, might ask for more than 5% premiums for your gold bullion coins.

Financial experts advise against buying and selling gold bullion coins on eBay or Craigslist, since many might not be authorized or can lead to a series of bidding negotiations that can last you a lifetime.

#3: When Buying Stick to 1-ounce Gold Bullion Coins

If you’re considering buying North American coins, then we might advise you to go for the American Eagle gold bullion coin since it comes in 4 denominations such as the 1-ounce, half-ounce, one-quarter ounce and one-tenth ounce.

The fractional gold bullion coins could be considered as sound investments since they have higher premiums above spot prices of gold, and therefore, are of higher value than the 1-ounce coins. However, if you’re buying gold bullion coins, then the fractional ones might cost you an arm and a leg. It is better to deal with 1-ounce gold coins due to lesser premiums above spot prices.

#4: Compare Dealers and their Buyback Policies

Every dealer varies, of course – some dealers don’t even ask for premiums above spot prices which might make buying and investing in gold coins easier for you. Before buying gold bullion coins, it is advisable to compare dealers and their authenticity by asking for their buyback policies and uncovering red flags or scams through them.

#5: Avoid Collector’s Items and Ignots

Since bullion comes in two forms – coins and ignots (bars) – it is advisable to invest in gold bullion coins since a gold bar would contain more gold and would be therefore, expensive and difficult to sell at the time of inflation.

However, since we are speaking of gold coins, it is also advisable to avoid collector’s items or rare commodities in gold since it can be a hassle.

Keep in mind that the price of gold bullion coins fluctuates with the rise and fall in the price of gold which is not the case with rare coins. They are graded according to their worth, and the rates are fixed, which means they can pass off as collectors’ items rather than mere investments.

No two rare coins that pass off as lookalikes or similar commodities might be equivalent to the same value, since collector’s items are graded differently.

Only a numismatist or a professional can offer his grading services to you and decipher the different grades of rare coins. Such grading differences can put a dent in your fortune by shooting up to thousands of dollars, which is why always consult a professional rare coin grader before buying collector’s coins.


Anna Stasia

I am Anna Stasia, an enthusiast who loves to travel and explore the world. Not only travelling is what I love in fact, I write travel blogs too, in order to entertain people and show them how important travelling is. I am a passionate writer and by profession.

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