Wondering how to buy gold bullion coins? Want to know which ones are best for you?
Gold coins are one of the best ways to invest in gold. You can benefit from the rising price of gold and at the same time protect your purchasing power from inflation.
Gold bullion coins are tied to the price of gold and, unlike rare coins or numismatics, are much easier to buy and sell on the open market. They usually sell for the spot price of gold plus a small premium.
Here are some tips on how to buy gold coins when you re first starting out:
#1 Knowing What To Buy
There are several different gold bullion coins produced by different countries. They are all similar in the sense that they all are basically gold bullion in minted format. The premiums differ slightly but all are easily traded and sold. The most popular ones to invest in are the
Canadian Maple Leaf
South African Krugerrand
Other coins that are slightly less popular (but still widely recognized) are the Austrian Philharmonic, Chinese Panda and American Gold Buffalo.
#2 Knowing Your Sizes
Gold coins come in different sizes or weights. For example, you can get 1 ounce, 1/2 ounce, 1/4 ounce and even 1/10 ounce gold coins.
Obviously the smaller bullion weights will cost you less however that s not really the true picture in terms or value. All coins sell at the gold spot price + a small premium. It takes just as much to create a 1/10 ounce as a 1 ounce coin so technically you end up paying a higher premium per ounce of gold on the smaller ounce coins.
Put another way, a 1 ounce eagle gives you more gold for the money than a 1/10 ounce eagle.
#3 Knowing Your Purpose
What is your purpose in buying gold? Do you want an emergency cache close to home, in case of a crisis or bank holiday ? Do you want to protect yourself and your family from a falling dollar? Knowing your purpose determines what kind of gold you buy.
So for example, if you want to have something that you could easily trade for bread, medications or other necessities in a crisis, you may want to go with smaller coins (who wants to spend a 1 ounce gold piece on a loaf of bread or a bottle of aspirin?)
However if your main goal is to protect your purchasing power from a falling dollar, you may want to build up as many ounces as possible. So from that standpoint, higher 1 ounce gold coins may be the better option to store your wealth safely.
#4 Knowing Where To Buy
You have a couple of options here local and online dealers. You can always try searching for local dealers. However be aware that they usually charge higher premium per coin than online dealers (since they have rent to pay and a storefront to manage).
Plus they make more money on rare numismatics (vs gold bullion coins) so they may try to persuade you to invest in these instead which do not give you access to rising gold prices and can be very difficult to sell for what you paid for them in a crisis.
So those are a few things you should know about how to buy gold coins. It s actually much easier than many people think it is. Just make sure to do your homework and buy through a trustworthy BBB accredited dealer with a proven history of dealing with bullion coins.