Things to Consider Before Buying a Gold Coin

Gold coins are a proven investment and a unique way to diversify your portfolio. These precious metal investments  have remained popular for thousands of years because they are portable, non-perishable and extremely difficult to counterfeit. 22-karat gold composition Gold coins also carry a certain level of prestige, which can be appealing for many investors. However, there are a few things to consider before buying a gold coin.

The price of a gold coin depends on the type and grade of coin, its purity, and the current price of gold. While bullion coins can be based solely on the price of gold, collectible coins have a higher premium over their gold content and may also be influenced by other factors such as their mintage history, quality of production and commemorative value.

While rare coins are an interesting investment, they are often overvalued by buyers and largely appeal to collectors and speculators who have excess money to invest in illiquid assets. Investing in gold coins that are priced close to their actual melt value is a more prudent approach.

To make a gold coin, two dies are struck against a blank piece of the precious metal with great force. One of the dies has the obverse (front) design and the other has the reverse (back) design. Depending on the type of coin, it can be made in different thicknesses and weights. Bullion coins are typically crafted in 24-karat pure gold, while collector's coins are often made from other materials such as silver or copper.

In the United States, the most common gold coin is the American Eagle. This gold bullion coin is available in various sizes, and it is known for its high quality. The obverse of the coin features Augustus Saint-Gaudens' full-length depiction of Lady Liberty with flowing hair and an olive branch in her hand, while the reverse is designed by Miley Busiek to feature an eagle soaring over a sun.

Adding gold coins to your portfolio can help protect your assets from inflation and provide a hedge against stock market crashes. They are also a great addition to any precious metals collection, as they offer a unique combination of beauty and investment potential.

To purchase gold coins, you must open an account with a reputable dealer. At Gold Krugerrand, we offer personal accounts that allow you to buy, sell and store your gold coins as needed. We also offer corporate and trust accounts that allow multiple signatories to trade on behalf of a company, foundation, or charitable trust. To learn more about opening an account, click here. For more information about our services and fees, contact us today. Our experts are ready to answer any questions you have about the benefits of owning physical gold coins. We'll be happy to assist you in building a solid, long-term investment plan.