Should I Invest in Gold Coins

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Gold coins have been used as a form of currency for millennia. The first gold coins were minted in Lydia, Asia Minor, in about 600 BC. The Lydian stater was a gold and silver coin featuring a lion's head on one side and a sunburst on the other, made of a gold-silver alloy.

The first gold coins were struck in the United States in 1795. These coins, known as the $20 Liberty Head Gold Coins, were made at the Philadelphia Mint. The obverse side of the coin portrayed Lady Liberty, while the reverse side displayed an eagle. 

Gold coins were used as money during the nineteenth and early twentieth centuries. In 1933, the United States government stopped minting gold coins for circulation due to the Great Depression. With the introduction of the American Eagle Gold metal coins in 1986, gold coins were made for circulation once again.

Since we now have covered the history of gold coins, let's have a look at the many types of gold coins that are now available.

  • Government-issued coins. Gold metal coins are produced by governments and private mints and often have a higher gold content than other types of gold coins. Popular gold metal coins include the Golden Eagle of America, the Golden Maple Leaf of Canada, and the Chinese Gold Panda.
  • Commemorative gold coins. Commemorative gold coins are designed to memorialize significant events or people. These coins are not intended for circulation and contain less gold than bullion coins. The Eisenhower Dollar and the Kennedy Half Dollar are two well-known gold commemorative coins.
  • Gold-proof coins. These are collector's items that are struck using a special procedure that results in a higher quality coin. Proof coins are not meant for circulation and contain less gold than bullion coins. Two popular gold-proof coins are the Golden Eagle of America and the American Buffalo.

What Are the Benefits and Drawbacks of Investing in Gold Coins?

There are several pros and cons of buying gold online. These include:

  • Pros: Gold is a valuable metal that has long been used as a means of payment. Gold coins are tangible items that may be bought, sold, or swapped. Gold coins contain more gold and are less susceptible to fabrication than other types of gold coins.
  • Cons: Gold is a volatile commodity with huge price fluctuations. Gold coins are notoriously difficult to sell, and not all buyers will take them. Gold coins may be subject to capital gains tax.

To make sure you get the most out of your investment, you must first choose a reputable dealer. Dealers may be located online, in coin shops, and in precious metals dealerships. After you've found a dealer, you'll need to decide what kind of gold coin you want to purchase. 

Gold coins come in a variety of sizes, weights, and purity levels. You must also decide how much money you are ready to invest in gold coins.

After you've found a reputable dealer and decided on the kind of gold coin you want to purchase, you'll need to pay for it. Cash, credit card, or bank wire transfer are all acceptable methods of payment for gold coins. 

After you have paid for your coins, the dealer will ship them to you. Gold coins are often packed in protective covering to minimize breakage during shipping. 

It is important to remember that while purchasing gold coins, you are dealing with a volatile commodity. Because gold prices move so rapidly, it's vital to keep an eye on the market. You should also be on the lookout for forgeries.

Before making a purchase, always buy gold coins from a reputable merchant and verify the coin for authenticity.

Comments (3)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and enjoy your day!

Jul 01, 2022 07:31 AM
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse specialist

I am a bit biased having been heavily involved in Numismatics during my youth and having worked in Precious Metal Structured Derivatives and Special Business in my first firm out of college (though I worked in FX trading support and Base Metal derivatives prior to moving to the Precious Metals Trading division of the firm). I also live less than 10 blocks from the original home of the American Numismatic Society headquarters- and an original statue by Augustus St. Gaudens still remains on location. So yeah, you could say I have a bias toward gold investing.

After working a long career in the capital markets prior to my more recent move into real estate- I do believe that most investment portfolios contain at least a small percentage of commodities- i.e. Precious Metals.

Jul 01, 2022 07:58 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em:

To me it seems like a good and safe investment, enjoy your day and have a wonderful, safe Holiday weekend. Bill

Jul 01, 2022 09:08 AM