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Basic Gold Investing


Are you interested in knowing more about gold investments but have never bought gold before and are not sure where to start?

If you answered YES, then read on - this article was written for you.

Free & Useful Gold Investment Advice

You won't find a sales pitch for buying gold from me here since I no longer sell precious metals. I want you to benefit from my experience in selling gold and silver for one of the oldest, most reputable precious metal dealers in the USA.

In this article (and in my investing in gold video) I discuss some of the most popular and recognized gold coins you can invest in. Just keep in mind that only you can decide if investing in these gold coins is right for you. I take no responsibility for your gold investment decisions.

With that said, let's begin...

Basic Gold Investing-Gold Bullion Coins

If you are just starting out with gold investments, I recommend investing in gold bullion first. Gold bullion has the least premium over the spot price (or melt value) of gold at the time of your purchase. So it is the least expensive way to start acquiring gold. Gold bullion comes in coin or bar form with coins more popular in the U. S.

1. Gold American Eagle

American Gold Eagle Obverse ImageMy top gold bullion recommendation is the Gold American Eagle. First issued in 1986 by the Philadelphia and West Point Mints, Gold Eagles are the most popular gold bullion coins in the U. S. Each coin is 22-karat gold and has an image of Lady Liberty on the obverse (front) as designed by Augustus Saint-Gaudens. You can see this image on the left. American Gold Eagle Reverse ImageThe coin's reverse image (at right) is a Nest of Eagles designed by Ms. Miley Busiek. Gold Eagles are backed by the U. S. government for content and purity and are widely accepted worldwide making them very liquid.

American Eagle gold bullion coins can be purchased in four different denominations: one ounce with a $50 face value; half-ounce with a $25 face value; quarter-ounce with a face value of $10; and tenth-ounce with a $5 face value. You will pay more of a premium over spot gold for the half, quarter and tenth-ounce coins than the one ounce coin. I will talk more about premiums below.

2. Gold Canadian Maple Leaf

Gold Canadian Maple Leaf Obverse ImageMy second bullion recommendation is from our friends to the north - the Gold Canadian Maple Leaf. Produced by the Royal Canadian Mint starting in 1979, these beautiful 24 karat gold coins are 99.99% pure gold (production of 99.999% pure gold Maple Leaf coins began in 2007). The Gold Maple Leaf has an image of Great Britain's Queen Elizabeth II on the obverse side. The coin's reverse image Gold Canadian Maple Leaf Reverse Image (at right) is that of a maple leaf - Canada's national symbol.

Gold Maple Leaf coins are guaranteed by the Government of Canada for their content/purity. They are as widely recognized and accepted as the U.S. Gold Eagle. Gold Maple Leaf bullion coins can be purchased in the following sizes: one ounce, face value of 50 Canadian dollars; half-ounce, face value of 20 Canadian dollars; quarter-ounce, face value of 10 Canadian dollars; and tenth-ounce, face value of 5 Canadian dollars. Premiums over spot gold are similar to American Gold Eagles.

Let me caution you if you decide to invest in Gold Canadian Maple Leaf coins. These coins are pure gold which is a soft metal. As such, they are easily scratched or nicked if you are not careful in handling them. Always handle your coins by the edges only (regardless of what gold coin it is) and be especially careful handling your Gold Maple Leaf coins.


3. South African Krugerrand

South African Krugerrand Obverse ImageMy third gold bullion recommendation is the South African Krugerrand. Produced by the South African Mint beginning in 1967, this coin gets its name from Paul Kruger, the last president of the Republic of South Africa, and the "rand", the monetary unit of South Africa. The Krugerrand is alloyed with copper (1/12 copper, 11/12 pure gold) resulting in a 22-karat coin. They are more durable and scratch-resistant than pure gold coins. The coin's obverse side has the image of Paul Kruger. The reverse South African Krugerrand Reverse Image(at right) is that of a springbok antelope, one of South Africa's national symbols.

South African Krugerrands are as internationally recognized and accepted today as the Gold Eagle and the Gold Maple Leaf. In the mid-1980's, the U.S. banned the importation of Krugerrands as part of the anti-South African boycott (Krugerrands already in the U. S. were allowed to continue being traded). Because of this, Krugerrands lost some of their luster (no pun intended). As a result, these coins tended to have a lower premium until the recent rise in gold interest again. Krugerrands also come in half, quarter and tenth-ounce sizes.

Just a few words about premiums....

Premiums for the above gold bullion coins are based on popularity (demand), the dealers' profit goals and other factors. Prices can vary widely from dealer to dealer so it pays to shop around. The current premium for a Gold Eagle, Maple Leaf and/or Krugerrand from a reputable dealer is currently between 5% to 10%. For Fractional Gold Coins (half-ounce, quarter-ounce, etc.) expect a higher premium.

When Buying Gold Coins - Buyer Beware

Now that you have a basic knowledge of popular gold bullion coins to invest in, you are almost ready to start shopping. But before you do, let me just say that when the price of gold gets high, precious metals dealers come "out of the woodwork".

You must be careful when selecting a dealer. Look for one or two that have been in business for some years, then check them out with the Better Business Bureau. And be sure to get the most current spot price of gold before you shop. You can find it on the Gold Investing Home Page.


Disclaimer:  I have made every reasonable effort to produce an informative and helpful article on Basic Gold Coin Investing based on my research and experiences. However, I make no representation or warranties of any kind with regard to its completeness, accuracy or suitability for any specific situation or purpose. See Terms and Conditions for more info.

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