Last updated on December 20th, 2022 at 10:58 am
Last Updated on December 20, 2022 Posted by Colonial Acres Coins
With so much uncertainty in the world today, you may be looking to diversify your investment portfolio by buying gold coins. There are many reasons why gold makes an attractive investment. It is tangible, portable, easy to sell, and holds timeless value. Of course, you could purchase gold in many forms, including bars or ingots. Nevertheless, when you buy gold coins, you can take advantage of some important benefits. Gold coins are easier to store because they take up relatively little space compared to other forms of bullion. With their attractive designs and finishes, gold coins also offer aesthetic value.
Once you have decided to invest in gold coins, you then need to consider the source. Do gold coin sets from the Royal Canadian Mint represent a good investment? Here are some questions to ask yourself to determine if you should buy gold coins as an investment strategy.
1. When Buying Gold Coins, What Are Your Options?
When it comes to gold coin investment, you have several different options to choose from. Numismatic coins are old coins that derive value from their condition and rarity on top of the value of the metal.
Proof coins are produced specifically as collectibles. They have a smoother field area and details that stand out more compared to circulation or bullion coins because they are struck more than once with specially polished dies. Proof coins derive value from their quality, condition, metal content, and relatively low mintage, the latter of which is planned on purpose by the mint.
Bullion coins derive their value chiefly from the amount of precious metal — in this case, gold — that they contain. Because gold is a soft metal, the coins sometimes consist of an alloy containing small quantities of other metals to harden it enough so that it will keep its shape. The gold content is measured in units called karats. The purest gold bullion is 24 karats, which is at least 99.9% real gold. A 22-karat gold coin is at least 91% pure gold. Most modern gold bullion is 24 karats.
Semi-numismatic coins combine traits of the other types; they are bullion coins with a lower mintage and perhaps a special design, like proof coins.
Numismatic and proof coins are of primary interest to collectors. Investors tend to be more interested in proof coins, while semi-numismatic coins may appeal to either.
The following are examples of gold proof coins newly released from the Royal Canadian Mint available for sale at Colonial Acres:
- $8 Earth Dragon Pure Gold Coin: This coin features an important figure in Chinese mythology that protects the waterways.
- $200 Celebrating Canada’s Diversity: Culture and Traditions: This coin specifically celebrates French-Canadian traditions through floral symbols and features a grade AAA blue sapphire.
- $200 50th Anniversary of the Summit Series: This dynamic coin celebrates Canada’s favourite sport, hockey, in general, and the dramatic eight-game Summit Series in 1972 against the Soviet Union in particular.
The RCM also produces gold bullion coins. For example, a Maplegram is a 99.99% Canadian gold bullion coin weighing one gram. Though it has a face value of 50 cents, it is worth much more due to its high precious metal content. Maplegrams come in blister packs for preservation and are available for sale individually or in sheets of 25.
When buying gold coins, keep in mind that the face value is more or less arbitrary, a convenient means of categorization. With bullion coins, the real value comes from their precious metal content, which is also a factor in determining the value of numismatic, proof, and semi-numismatic coins, though it is not always the most important factor.
2. What Are the Best Gold Coins To Invest In?
The best gold coins to buy and the best gold coins to invest in are not always the same thing. If you are a collector, you probably want to focus primarily on numismatic and proof coins. As an investor, it can be a good idea to purchase some numismatic and semi-numismatic coins based on their potential to increase in value and get a high return if you eventually decide to sell. However, if you are purchasing gold primarily as an investment, you should concentrate on bullion coins. As an investor, you want to be able to sell the coins quickly. Therefore, you should look for the most common gold coins available.
People from around the world purchase Canadian Maple Leaf bullion coins for investment purposes. Maple Leaf coins consist of 99.99% pure gold. They are also sovereign coins, meaning that they are produced and backed up by a government mint.
The Maplegram is only one denomination of Maple Leaf bullion coin. Though all consist of 24-karat gold, Maple Leaf coins come in different weights and therefore have different face values:
- $1 Gold Maple Leaf: 0.05 ounce
- $5 Gold Maple Leaf: 0.10 ounce
- $10 Gold Maple Leaf: 0.25 ounce
There are 31.1 grams in a troy ounce. Therefore, Maplegrams are the smallest denomination of gold Canadian Maple Leaf coins. This is part of the reason that they are available to purchase in sheets in addition to individual coins. Buying heavier Maple Leaf coins generally is a better value, especially if you intend to buy gold coins as an investment strategy.
3. Why Should You Purchase Gold Bullion Coins From the Royal Canadian Mint?
You do not necessarily have to purchase sovereign coins from the country where you reside. However, gold bullion coins from the Royal Canadian Mint offer significant value regardless of where you live. In the first place, with a 99.99% gold content, i.e., 24 karats, they are among the purest gold coins available. The Royal Canadian Mint also equips each sovereign coin with sophisticated security features so that they can be easily authenticated.
Gold Maple Leaf bullion coins are given this name because of the design on the back. They have precision micro-engravings using a laser that makes them more difficult to counterfeit. They also feature an anti-counterfeiting security mark that can be read with a special device to ensure authenticity.
4. Where Can You Purchase Gold Coins?
Most investors and collectors alike purchase gold coins from either an online dealer, a bank, or a local coin shop. When buying online, you must pay upfront and wait for your gold to be delivered. When buying in-store, your purchase is more private, and you can take immediate possession of your gold, though large quantities may not be available right away. If you are new or looking for more information when it comes to purchasing gold our staff at Colonial Acres is more than happy to answer any questions.
Why You Should Trust Colonial Acres When Buying Gold Coins
Ultimately, the dealer’s reputation matters much more than whether you buy gold coins online or are buying gold coins in-store. Colonial Acres Coins offers both buying options and has been in business since 1991. Check out our selection of gold bullion for sale as well as more purchasing tips. We also offer a selection of numismatic coins for collectors.