How to Choose the Best Gold Bullion Coins To Invest In

It is easy to invest in gold. You have a myriad of  reasons why people choose gold coins in particular. However gold coins are not all the same nor do they have the same investment value. Gold coins are small and more convenient to buy than gold bars but they are not as liquid as gold jewellery. When you buy gold coins you have to consider a couple of things because sometimes their value does not lie in the amount of gold they have only. There are other factors that may come into play when valuing gold coins other than their melt value. There are three main option of gold coins that are available. These are sovereigns, rounds and numismatic coins. What are the best coins to invest in?

Sovereign Bullion Coins

Sovereign coins usually made from investment grade gold or gold with a minimum purity of 99.5%. When selling sovereign golds you will discover that even though they may have a currency denomination, their value is less than the actual weight in gold. These are coins that are produced by government mints. Which means that the government guarantees the validity and value of the coins. They are not easy to counterfeit sovereign bullion gold coins. The value of Sovereign gold bullion coins correlates with the value of the gold and is not often affected by independent factors as is the case with numismatic gold coins. They are a great way to invest for anyone who is new to gold investments.

Gold bullion Rounds

Gold rounds are coins that are produced by private mints. They are not backed by a government and are not considered as legal tender. When you buy gold rounds you do not get the tax exemption you would get with sovereign gold bullion coins. People are attracted to gold rounds because they don’t want to purchase gold from the government. Gold rounds sold by private mints are made from 99.99% pure gold. You can get more when you sell because their value correlates to their purity which is always higher.

Numismatic Coins

Numismatic coins are different in that they behave like collectables, antiques or artworks and have value that is based on more than just the gold in them. Factors like: when the coins have been minted, historical significance, collect ability and various other factors. Numismatic gold coins can be worth more than sovereign coins or gold rounds. They have a whole different market besides the normal gold market. It is important to do research a particular numismatic gold coin before you invest in it. It can be hard to sell numismatic coin and get a great price if they are not in demand. Finding a buyer who will pay what a particular coin is worth can take a while unless you are willing to sell to a dealer who is interested in the melt value of the coin itself more than he is in its numismatic value.

Whatever you decide to buy gold coins are always a good investment. You have more options that are available to you when the time to sell the gold comes by than you have with gold bars. Gold coins are an excellent choice to make if you are new to the world of gold investments.