Gold coins are going from strength to strength as investors increasingly appreciate the balance that they offer between value, divisibility and portability. Specifically, gold coins can easily be separated into small amounts for multiple sales, and often hold increased value compared to gold bars due to their added value as collectibles.
Unlike gold bars, coins can carry different purities of gold, with some containing pure 24 carat gold and others offering the more stable 22 carat alternative, which has been designed to cope with wider circulation.
Coins are also treasured by many people who aren’t so interested in monetary gain, such as those purchasing a gift, or collectors, with the latter playing a large role in the trading of gold coins.
Gold Coin Investment
There are many different types of gold coin, each with its own unique properties and characteristics. Some of the best-known and widely circulated coins include:
South African Kruggerrand - Having previously held such a prominent position in global gold production, it’s no surprise that South Africa was the first country to create the modern 1 troy ounce gold bullion coin, now produced around the world. The South African Kruggerrand is still the most common modern gold coin in circulation, making up around one fifth of all the coins produced since 1970.
Canadian Maple Leaf Gold – As the first country to recognise the success of South Africa’s new gold coins in the 1970s, Canada quickly followed suit and produced the first 24 carat bullion coin of the modern era. Created by the Royal Canadian Mint, the Canadian Maple Leaf Gold Coin is still the most popular 24 carat gold coin in circulation.
Sovereign - First produced in 1489, the sovereign has seen its popularity grow and wane in line with the changes in the British throne. However, it is now a strong part of the Royal Mint’s heritage, and a popular gold coin among collectors and investors alike.
American Eagle Gold Coin - Launched in 1986, the American Eagle gold coin comes in four different sizes, each at 22 carat purity. The coin is produced by the United States Mint for the US gold coin market, which is among the biggest in the world. This makes the American Eagle a popular choice for investors, including those located outside the US.
Gold Britannia - Britannia gold coins have been issued by the British Royal Mint since 1987 and contain one troy ounce of gold. Although originally 22 carats, the coins have been 24 carat in purity since 2013, removing the silver component that was introduced in 1990.
The Pros and Cons of Gold Coin Investment
The main advantage of investing in gold coins is their growing popularity and subsequent ease of sale. Widely circulated around the world, gold coins offer a portable and secure alternative to gold bars that can be bought and sold in quantities that suit. Thanks to their popularity as both collectables and investment assets, these coins are often easy to sell regardless of the gold price, making them suitable for more risk-averse investors.
For all the advantages associated with purchasing gold coins, investors should be aware of the dangers of purchasing from unreliable suppliers. If you’re investing in gold in any form, be sure to identify a gold supplier that provides fast, fully-insured delivery, rather than a company that delays delivery or fails to secure the package.
Reputable companies such as The Gold Bullion Co. will always ensure secure delivery is provided, with many offering delivery tracking to ensure customers can keep an eye on their asset at every stage of its journey.
If you would like to purchase gold coins or find out more about our secure gold delivery service, please feel free to contact us on 0121 523 1047.