Subscribe Feed (RSS)Gold bullion coins are increasingly being turned to by both investors and ordinary families as way of preserving their money in these financially turbulent times. People are attracted by both being able to diversify how their savings are held, and also by being able to actually hold their wealth in their hands.
So, what exactly are gold bullion coins, where do you get them, and how much do they cost?
Once upon a time, gold coins were actually in circulation as currency, and most countries issued them. As an example, the USA used to use quarter eagles, half eagles, eagles and double eagles. These are now sought after by collectors, having last been issued in the’30s. After a gap of thirty or forty years, countries began to issue gold coins again, but not for circulation, since gold had simply become too valuable.
These days when people refer to gold bullion coins, they are talking about the modern format of them, which are issued by governments in one ounce, or fractions of one ounce weights, and which are meant only for collection or investment. They are intended to be an easy and relatively inexpensive way for citizens to own gold (inexpensive compared with larger and heavier gold bullion bars).
In the USA, gold bullion coins are called American Gold Eagles. In Canada, they are called Canadian Gold Maple Leafs. In South Africa, the coins are called Krugerrands. In China, they issue Gold Pandas. The names are derived from the designs they carry.
All the governments that issue these gold bullion coins use the same gold weighting scale, with them being available in the following values: one ounce, half an ounce, a quarter of an ounce, and a tenth of an ounce. Sometimes the bullion coins are pure gold, sometimes they have a small percentage of silver or copper to make them harder wearing, but they always have an ‘actual gold weight’ of one ounce or a fraction of an ounce as stated on the coin.
The coins will normally have on them the year in which they were issued and a face value. However, the value stated on them is not what they are actually worth, they are in fact worth much more than that. The price of a coin would be the current spot price of gold, plus a ‘premium’ determined by the market or by the dealer. So, a one-ounce American Gold Eagle is worth more than $1000 today.
Gold bullion coins have traditionally been bought from a dealer or a local coin store, but in recent years the Internet has opened up two new ways of purchasing them. One of the new ways is through online auction sites, and the other is through specialist online coin stores. These specialist online coin stores are the best way for most people to buy because you can view all types and weights of coins in one place, and can purchase them at prices which are generally lower than elsewhere.
To find out more about bullion gold coins, read about the types of coins available, and to check current prices, go to bullion-gold-coins.com and get the information you need to know before you buy.
Tags: finance, Gold, gold bullion coins, gold coins, personal finance
