How to buy gold coins?

There are different types of gold coin to buy for investment
There are different types of gold coin to buy for investment
There are different types of gold coin to buy for investment

Tips in purchasing gold coins for beginners and new investors

Gold coins have been around since the start of ancient civilization. The precious metal of kings and pharaohs was the primary source of money until the early 20th century.

Since raw gold is mined and not produced, its scarcity plays a big role in its value. Gold coins, made of “physical gold”, are just like other commodities: its price is determined by supply and demand.

Today, gold coins are sold to collectors and investors in two forms: numismatic gold coins and the gold bullion coins. Which ever gold coin you fancy, you are insured in having tangible assets that can buffer your finances during recessions.

When your gold coin collection grows, you start making profit from your gold coin investment through selling or trading them.

Gold coins are special coins in a sense that even the most damaged and the lowest grade of gold coins are still marketable for their intrinsic precious metal value.

Here are the tips on how to buy gold coins

1) Understand the dynamics of the gold price

The gold spot price and the gold content (weight per ounce) of a coin contribute to its actual selling price. Gold coin dealers put a premium (mark up price) on gold coins to cover the production and shipping expenses.

Gold coin prices go up during a period of economic and political instability. This is because numismatic experts and gold coin investors alike call gold as the mirror of economic and political environment. 

Search the up-to-date price of gold in the internet. Gold prices are volatile and they change from time to time. They are stated as dollars per ounce. Coin books can help, too.

2) Choose what gold coins to buy

Decide whether to get the collector gold coins or gold bullion coins. Not all gold coins are created equal – there is a big difference among these two kinds of gold coins.

Gold bullion coins

Most gold bullion coins are not legal tender. However, they are issued by central banks and government mints. You need to sign important documents when you purchase gold bullion coins. 

Common gold bullion are the American Eagles, the Canadian Maple Leaf, and the South African Kruggerand – all these contain the standard one ounce gold in each coin.

You pay a little premium over the current price of gold for the bullion coins. Check if your gold bullion coin does not have any damage. Minor scratches do not diminish your gold bullion coin’s value. 

However, major defects could lessen the weigh of the gold. Remember that the value of the gold bullion coin lies on its precious metal content and not so on its numismatic value.

Numismatic rare gold coins

Numismatic gold coins, on the other hand, are valued for its rarity, and grade. 

Collector gold coin prices have higher premiums than bullion coins. However, their gold content is not standardized.

Collector’s gold coins that have a legal tender are valued for their rarity and coin grading condition. It’s a little tricky in buying these coins so you have to consult coin books, catalogues, and numismatic websites to get a fair price. 

Always be wary of fake gold coins. The spot price of gold plus the collector’s demand is essential in how to determine the value of your gold coins.

3) Buy gold coins in once ounce increments since it is easier to buy and sell them.

Gold coins, especially the bullions, have a lesser premium than gold bars. The liquidity of gold coins or the ease to convert them into cash makes it ideal investments.

4) Find a trusted gold coin dealer

When buying gold coins or just about any coin, always check the dealer’s background. Ask for recommendations from other gold coin collectors. Locate the nearest coin dealer in your area who offers a good price. This way, it would be less risky to take home your gold coins from the shop.

5) Buy gold coins from credible institutions and private firms

You can opt to buy from the national mint like the United States Mint, or from central banks. Other reputable firms selling gold coins are Monex, Kitco, and Blanchard.

6) Buy your coins in online auctions, classified ads from numismatic sites, and other coin websites

Always ask for specific details and a close up photo of the gold coin. Check the gold coin dealer’s reputation with his or her other client transactions online.

7) Visit coin shows and socialize with other gold coin enthusiasts and sellers

You can get the best gold coin prices in coin shows. This is also a venue where you can establish ties with other gold coin collectors and share ideas on what gold coins to buy.

I am passionate about the historical, cultural, and artistic aspects of currency. I collect coins and banknotes from various countries and time periods, focusing on specific themes, time periods, or regions that I find interesting. I also love to study the historical context of the currency that influenced coinage and currency issuance.