Bullion coins, such as gold bald eagles, are the best type of precious metals for most investors. This is because sovereign currencies are easily recognizable, easy to trade, and typically sell at higher premiums than bars. You can pay a higher premium if you buy gold coins of less than an ounce each. You should usually buy bullion coins, such as the American gold eagle, the Canadian golden maple leaf, or the South African Krugerrand.
However, investing in gold and other precious metals, and particularly physical precious metals, carries a risk, including the risk of loss. While gold is often seen as a safe-haven investment, gold and other metals are not immune to falling prices. Learn about the risks associated with trading these types of products. The decision to invest in gold coins or gold bars should generally be influenced by your objective as an investor.
By buying gold mining stocks, gold certificates, or publicly traded products, for example, you can reap the advantages of hedging gold against inflation without having to carry heavy gold coins or worry about where to store them. If a guy is trying to sell you a coin, all you have to do is go to your smartphone and look for one of the sites that lists the “current book value of most of the coins you find.” The idea here is that gold bars tend to attract much lower premiums than gold coins thanks to their larger unit size, which often leads to lower manufacturing costs. It was difficult to find a specific coin he was looking for, and even when he did, he had to personally assess the state of the coin, an almost certain decision that would be questioned by both the seller and any future buyer. You should consider several factors when choosing between gold coins and gold bars as your investment options.
Old coins are more likely to have melted over the years, or that they have been circulated and severely worn out. For the average investor who is simply looking for the traditionally safe and reliable store of value that gold and silver are known for, bars are the best way to do so. On the other hand, gold bars are considered a much more reliable investment than gold coins because their value can be determined precisely. Major mints, such as Philadelphia, produced a greater number of gold coins than smaller ones, such as Carson City.
These terms are significant when applied to numismatics, but not to commemoratives because, by definition, each coin produced is new and identical to the others. The most common bullion coins are produced by a country's national mint; they are also known as sovereigns. In addition to avoiding the risks that come with relying on the unstable paper-based currency, investing in gold is a sure guarantee that you will not be affected too much by inflation or currency devaluation. There is no centralized list of gold traders approved by the regulator, but, like other companies, you can find some gold traders accredited by the Better Business Bureau.