Golden Eagle Coins are seen by many investors as a great way to diversify the typical portfolio and favoured by first time and seasoned investors alike due to their liquidity. Arguably the first question that is asked is why buy bullion coins over numismatic coins? Simply answered numismatic coins are coins that achieve value primarily due to their rarity where as bullion coins are purchased for their metal content.
What this means is that the primary benefit of buying bullion is that you get a 100% correlation with the physical asset. So when gold goes up by 30% or down 10% your bullion value goes up or down in direct correlation.
Numismatic coins present a more complicated investment vehicle especially for the uninitiated as their value involves more than just their metal content and includes aspects like popularity, condition, and scarcity. Numismatic coins are also subject to margin differences between the wholesale and retail price that can be as great as 30% depending on the dealer (also known as the premium over dealer cost). This is not to say that buying bullion is not also subject to dealer costs but they tend to be on the whole much smaller margins. So expect to pay a small premium over the metal content cost which again will vary dealer by dealer so it pays to do your homework and shop around.
Think about keeping you gold bullion coins for the long term so that when you come to sell the appreciation in value will more than cover you initial transaction costs.
American Gold Eagle gold bullion coins are the first bullion coins to invest in. Gold has a fabulous reputation for its beauty and long standing reputation as a safe haven investment. The US Mint mints the gold eagle coins in 22 karats and the following list details a brief explanation of karats.
- A karat in gold is equal to 1/24 part of pure gold
- 24 karat gold equals 100% pure gold
- 22 karat gold equals 11/12 gold and 1/12 other (copper), 92% pure gold
- 18 karat gold equals 18/24 pure gold and /24 other (normally copper or another metal), 75% pure gold
- 14 karat gold and 14/24 pure gold, 58.3% pure gold
Back in 1986 the US Mint minted the first gold eagle coin based on the original $20 gold eagle design by Augustus Saint-Guagens commissioned by President Teddy Roosevelt. The coins have quickly become the top selling coin in the US.
The US Mint guarantees the coins authenticity, content, weight, and metallic purity which makes them very attractive investment vehicles not only for the American market but for the international market too. So investing in gold eagles is very advantageous. Gold is a great inflation edge and perfect for long-term investment strategies. Buying and selling these coins is very easy and when done in small quantities the transaction is private and non-reportable.
Typically Golden Eagle Coins are sold as one-ounce bullion coins but you can get them in half ounce, quarter ounce, and 1/10 ounce denominations. Consider gold as an affordable investment for any portfolio.
Leave a Reply