Category Archives: Gold

Top Gold Bullion Coins for Investing

gold-investment

gold-investment

Gold bullion coins are a very popular investment amongst savvy investors. Analysts predict that the price of gold coins should continue to rise in due to global economic and political instability. Gold coins represent a highly convenient way to participate in the current gold bull market, and each coin’s gold content is guaranteed. Here are 2 of the most popular gold bullion coins available for investing:

South African Krugerrands:

The first gold bullion coins made in precise 1-ounce sizes were Krugerrands that could be bought just for the spot gold price and a small markup to cover distribution and manufacturing. Since there is a large supply available, they have a lesser markup than other more newly-minted gold bullion coins.

One-ounce Krugerrands are made with 91.67% fine gold and a weight of 1.0909 troy ounces. The South African Mint distributes them in tubes of 10 or 15 coins in each tube.

Gold bullion coins came into being in 1967 when South Africa started minting Krugerrands. South Africa is the world’s largest supplier of gold. The Krugerrand was critical in helping them market their huge stocks of gold being mined.

Krugerrands revolutionized the gold market by making gold ownership convenient on a smaller scale for the small investor. They provided one ounce of gold that was simple to buy and sell worldwide. Afterwards, many other countries followed South Africa’s example and minted their own gold bullion coins.

American Gold Eagles:

The U.S. Mint’s American gold eagles are the most popular gold bullion coins in America today, accounting for in excess of 80% of the physical gold bullion market. These highly successful gold bullion coins are very easy to buy and sell at favorable price spreads. They are also very convenient to store because they are issued in tubes that save space, as opposed to the more awkward packaging that many other country’s gold bullion coins arrive in.

They are minted with 91.7% pure gold and come in various sizes. Some of the sizes may present a good opportunity for collectors due to their scarcity. A powerful after-market has developed for these coins, as many collectors seek to complete sets going back to the mid 80’s.

Eagles are also available for larger purchases in sealed plastic boxes that weigh about 40 pounds each. Each box holds 500 ounces of gold, with the coins coming packed tightly in sealed U.S. Treasury tubes.

American gold eagles bear a modified design of the one created by Augustus St. Gaudens, which the old $20 U.S. gold coins displayed.

More info: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?flash=yes&action=american_eagle_gold

Know how to collect British Gold Coins

british-gold-coins

british-gold-coins

British gold coins were first minted in 1489 when Henry VII issued first 20 shilling gold coin, with his portrait on it. Thereafter the minting was stopped when James I ascended the throne in 1603.

 

Those who have great interest in gold coins usually collect modern sovereigns. Early sovereign coins are very expensive and many people cannot afford to buy it. If you are fond of collecting coins, here is some basic information that will help you in your search for the perfect one.

Collect the British gold coins by reverse design:

These type of coins don’t cost too much in comparison with others. Most of the gold coins has a reverse design of St. George killing a dragon. But there is a time through the years that a shield reverse was used, for the royalties have different kinds of shields.

George IV, William IV, and Victoria used different kinds of shields on their coins. While Elizabeth II only has a shield reverse in two years, the time when it was the 500th anniversary of the sovereign. In 2005 she used a different design of St George slaying a dragon on the reverse design.

Collecting by mint mark:

Mint mark is a very tiny letter that can be found either above the date or beneath the portrait. This mark was used to identify the place where the coin was made. You’ll see letters like M, S, C, I, P, and SA. These letters stands for Melbourne, Sydney, Ottawa Canada, Bombay India, Perth, and Pretoria South Africa. From 1932, all sovereigns were made in London. So, if you see a coin that does not have any letter, it means that it was made in London.

Collecting by date:

This is the most expensive way of collecting British Gold coins. There are some coins in some years that happen to be the most expensive. This collection will include every year and every mint mark. This type of coins are very expensive because there were some years that produced rare coins such as the early sovereign coins. The older the sovereign coin is, it gets costlier and costlier. There are only a few collectors who can actually afford this collection.

british-gold-coins

british-gold-coins

Collecting by portrait variations:

There are more than few different portraits on gold royalties during their reign. This is also a good way of collecting British gold coins. There are 4 portrait of Victoria, George VI had 1, and George V has 2, while Elizabeth has 5.

Collecting by monarch:

Most of the collectors have this kind of basic collection since royalties always had their portrait when minting a coin so it is easier to collect them. British gold coins especially for the numismatic are fascinating and beautiful, but there are some of the coins are expensive especially those early sovereign. Also remember that generally speaking the older the coin the larger its value is.