This article delves into a comprehensive discussion based on insights provided by a variety of investors with diverse experiences and perspectives. The conversation revolves around key factors such as coin purity, tax implications, and regional preferences. From 24-karat coins to tax reporting laws and the impact of political dynamics, there is a diversity of factors that investors consider when selecting gold bullion coins. These factors encompass both practical and personal considerations, ranging from the coin’s purity and premiums to tax implications and political influences.
- Pre-1933 USA Gold Coins: We advises caution when considering pre-1933 USA gold coins in $1, $2 1/2, and $3 denominations for investment purposes. These coins are often more collectible than they are viewed as a way to buy gold for its intrinsic value. High collector premiums and the potential for reduced premiums in times of national catastrophe are cited as reasons to be wary.
- Low Premium Material: The consensus among gold stackers is that investors should focus on low premium gold coins, whether they are of domestic or international origin. Coins with lower premiums typically offer better value for investors looking to acquire physical gold.
- Condition of Coins: gold stackers mention the importance of coin condition when stacking gold. Damaged coins are generally cheaper, and buyers should ensure they are weighed properly and priced accordingly.
- Tax Reporting: A critical point raised is the variation in tax reporting requirements for different gold coins. Some coins, like the Canadian Maple Leafs, South African Krugerrands, and Mexican Onzas, trigger mandatory IRS reporting in the United States when selling in quantities exceeding 25 ounces. This reporting may raise privacy concerns for investors.
- Variety of Coins: Some gold stackers appreciate having a variety of coins in their stack, while others express a preference for certain coins based on factors like design, purity, and potential for appreciation.
- Geopolitical Considerations: A gold stackers touch on geopolitical considerations when choosing gold coins. They note that certain coins may be less desirable due to political factors, and this should be taken into account when making investment decisions.
- Preference for 24K Gold: The 24kt gold coins, such as the Canadian Gold Maple Leaf and the Britannia, are favored by some for their high purity. The 24kt coins are considered a good choice for those who prioritize purity above all else.
- Security Features: The Britannia is mentioned as a preferred coin due to its security features, which can enhance trust in the coin’s authenticity.
I can provide a ranking of popular gold bullion coins by country, taking into consideration both European and USA coins. Please note that this ranking is based on factors like popularity, purity, and historical significance. Individual preferences may vary, and other factors like taxes and availability may also influence an investor’s choice. Here’s a combined ranking:
Best gold coin to buy by country.
1. Gold Britannia (UK): UK. The Gold Britannia is highly regarded for its 24kt gold content, security features, and attractive design. It is a favorite among European and international investors.
Gold Britannia coins offer a range of benefits for investors, including accessibility through various denominations suitable for different budgets, tax efficiency for UK residents with exemptions from Capital Gains Tax (CGT) and Value Added Tax (VAT), and the reassurance of legal tender status in the UK, ensuring flexibility when it comes to selling. However, potential investors should consider the associated considerations, such as the need for secure storage to protect against theft, the risk of encountering counterfeit bullion when purchasing physical gold, exposure to market risks like exchange rate fluctuations and gold price volatility, and the historical tendency of gold to deliver relatively modest long-term returns.
2. Gold Krugerrand (South Africa): Europe. The Gold Krugerrand is a well-known and widely recognized coin globally, known for its historical significance and 22kt gold content. It is a popular choice among European and international investors due to its accessibility, tax efficiency Krugerrands are not exempt from capital gains tax (CGT) in UK.
While there are some risks associated with investing in Gold Krugerrands, such as storage and security risks, counterfeit risks, market risks, and long-term performance risks, they remain a popular investment option for gold investors who wish to make a direct investment in gold bullion, hedge their portfolios against the U.S. dollar, or further diversify their portfolio
3. Gold American Eagle (USA): North American investors. The Gold American Eagle is a classic choice among American investors. It has a 22kt gold content and is backed by the U.S. government.
4. Gold Canadian Maple Leaf (Canada): The Gold Canadian Maple Leaf is known for its high purity (.9999) and beautiful maple leaf design. It’s a preferred choice among North American and international investors.
5. Gold Buffalo (USA): North American investors. The Gold Buffalo is prized for its 24kt gold content and iconic design, making it highly attractive to collectors and investors.
6. Gold Austrian Philharmonic (Austria): North American and European investors. The Gold Philharmonic is known for its aesthetic appeal and is made of .9999 fine gold. It’s a popular choice in Europe and beyond.
7. Gold French Rooster (France): French investor. The French 20 Franc Rooster is a historic gold coin with a classic design. While no longer in production, it’s a favorite among french gold stackers.
8. Gold Swiss Franc (Switzerland): Swiss gold coins, including the 20 Swiss Franc gold Vreneli / Helvetia, are known for their quality and historical significance. They are often considered a safe haven investment.
Swiss gold coins, including the Swiss Franc, are known for their quality and historical significance. They are often considered a safe haven investment. The Swiss Franc is a good investment option because it qualifies on all three parameters of high security, low risk, and protection from inflation. The Swiss Franc has emerged as a potential investment option due to its status as a safe and robust investment vehicle. Swiss gold coins are highly collectible and make for a reliable investment. All coins minted after 1936 were restruck once gold coins were no longer considered legal tender, making them a great investment option. Investors can purchase Swiss gold coins, including the Swiss Franc, from various online dealers. It’s important to compare prices and ensure that the dealer is trusted and reputable
9. Gold Sovereign (UK): The Gold Sovereign carries historical significance and is known for its smaller size. It’s a collector’s favorite and is also considered a tangible asset. exempt from Capital Gains Tax (CGT) for UK residents.
10. Gold Panda (China): The Gold Panda features annually changing designs and is highly collectible. It’s a popular choice for those interested in Chinese culture.
What is the history behind the Gold Krugerrand coin : The Gold Krugerrand is a South African coin that was first minted on July 3, 1967, to help market South African gold. It was created to give the South African mint a much-needed boost and was the first modern coin to consist of over one troy ounce of 22-karat gold. By the late 1970s and early 1980s, the Krugerrand made up 90% of the international coin market. However, during the 1980s and 1990s, Krugerrands fell out of favor as some Western countries forbade import of the Krugerrand because of its association with the apartheid government of South Africa. The Krugerrand is a legal tender in South Africa andKrugerrands are not exempt from capital gains tax (CGT) . The coin is made of an alloy of gold and copper, which makes it durable and resistant to wear. The Krugerrand remains a popular investment option for gold investors who wish to make a direct investment in gold bullion, hedge their portfolios against the U.S. dollar, or further diversify their portfolio.