This can make the investment process more fun and almost addictive, verging into a collector’s territory.įor a home stacker it can be very easy to flip from being an investor into a hobbyist then into a numismatist collector – which is a danger. Home-storage stackers tend to buy whatever coins or rounds are available at the lowest price on the day and can quickly develop a wide collection of varied designs, nationalities and sizes. Although scratches and scuffs are inevitable these can run from almost none to substantial wear – with a damaged coin only ever selling at it’s basic scrap price.Įven when a damaged coin is from a premium mint, it will most likely only ever resell below spot. This can offer investors some significant savings especially when buying at quantity. Secondary market coins (pre-owned coins) are as you would expect typically closer to spot than new. One advantage of this, is it is usually easier to resell a well-known mint’s coin in any market compared to generic rounds – or at least they will command a higher price due to their desirability, often higher than spot.ĭealers will rarely offer anything at spot or higher for generic rounds. The US Gold Eagle is an exception to the no-IRA rule – it does qualify for an IRA Other ConsiderationsĪlthough the purpose of investing is usually buying as low as possible, premium mints and legal tender coins are usually more expensive than generic rounds. Notable alloyed bullion coins include the Krugerrand, US Gold Eagle and the UK sovereign (all 91.67% pure gold) with the Mexican Gold Peso alloyed to 90% gold. While most investment grade gold bullion coins are between 99.5% and 99.99% pure gold there are some, especially those traditionally used as legal tender or commonly used as a medium of exchange that are not made from pure fine gold, but an alloy to make them harder wearing.Īlloyed circulated coins can be less costly on a per unit front – a big advantage for new investors – but it will also disallow them from use in a Gold IRA which has strict rules regarding fineness or purity, and will similarly mean they don’t have the same tax advantages as pure gold bullion coins in states or countries where that advantage exists. Other bullion coins like US Gold Eagles or American Buffaloes from the United States Mint are of course extremely popular in the US ticking the patriotic buy-America box in a way that little else in the market canĬoins from prestigious mints and legal tender government mint coins will normally carry a higher premium in comparison to generic rounds from workaday refiners. There is a staggering choice available in bullion coins and rounds, with some being truly beautiful examples featuring ornate designs with UK Britannias and Austrian Philharmonics being two notable examples – verging on collector quality. Coins don’t typically carry serial numbers as bars do. These blanks are then fed into a press machine, where a “strike” forces the blank between two negatively engraved formers (coin die) which imprint the blank with a pattern, edging, and a display of fineness and other information. Gold Bullion coins are made in a two step process where carefully measured blanks are first cut from a large sheet of gold. They are compact, easy to carry and store, easy to hide if required and in many cases are even legal tender with additional tax benefits in some jurisdictions. These types of coins are collectables – or numismatics – and don’t carry any tax advantages.īullion coins are truly universal and can be bought and sold at close to spot anywhere in the world. To count as bullion their value should be based on the weight of gold they contain and not on any other factor such as age, beauty or rarity. Gold bullion coins and rounds are a precious metals coin made specifically for investment – and because they are often tax-advantaged or tax exempt, they are legally required to be sold near to gold’s market (or spot) price. While they’re becoming increasingly rare due to the hobby of “coin roll hunting” we’ve all handled them. Who hasn’t or doesn’t know at least one person who’s collected coins, whether unusual, old or foreign – it’s a common hobby here in America.Īnd unusually America still has coins containing precious metals in daily circulation – quarters, dimes, half dollars, and dollars made in and before 1964 are 90% pure silver silver and half dollars dated from 1965-69 are 40% silver. Their popularity is most likely down to the fact that we’re accustomed to coins – we use non-bullion coins in every day life so it’s a concept we’re all simply used to. If you’ve made the decision to invest in gold, why would you choose gold bullion coins or rounds over bullion bars? After all, bars will typically have a slightly lower premium than coins on a weight for weight basis. Why Invest in Gold Bullion Coins or Rounds?
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