Best Gold Coin to Buy | 3 Great Options for Buying Gold Coins

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Best Gold Coin to Buy

Buying Gold Coins can be one of the best investment decisions you can make. They are rare, collectible, and can increase in value in the years to come. But how do you choose the best gold coin to buy? Read on to find out.

This article is not intended to be investment advice. One should consider talking to an investment professional prior to purchasing gold. The price of gold can fluctuate and one should check the current market price for gold to compare their purchase to market value. It’s the reader’s responsibility to do proper due diligence prior to any gold purchases.

Gold has been considered one of the most valuable metals on the planet for thousands of years. Its beautiful appearance and unique properties have made it highly desired in virtually every culture including the Ancient Greek, Egyptian and Roman civilizations.

Today, gold is seen as one of the safest options for investing as its price is more stable than government-issued currency, stocks, or bonds. Given its prized status over the past few thousand years, we know it will continue to be valuable for the foreseeable future.

Investors have several options when investing in gold, including:

  • Buying gold objects like gold coins, gold bars, or gold jewelry 
  • Buying shares in gold mining companies
  • Buying a gold-backed exchange-traded fund (ETF). 

Many investors prefer to buy gold objects because they have complete control over their investment. They get to decide where to store it, how long to keep it, and what to sell it for. They aren’t constrained by what share markets or currencies are currently doing and they get to control a physical object that is highly valuable.

But how do you invest in gold coins? Are all gold coins the same? What are the best gold coins to buy? In this guide, I’ll explain why you should invest in gold coins and how to choose the best gold coins to buy. I’ll also identify the top 3 gold coins for investors.

Why Invest in Gold Coins?

Gold Coins Have High liquidity

Gold is a highly-valued asset in most geographical locations. This means you can easily sell your gold coins should you need to. The demand for gold can increase as other economic assets decline.

Gold Coins Are Tough and Tangible Assets

The beauty of investing in gold coins is that you can hold thousands of dollars of assets in the palm of your hand. Gold also isn’t as fragile as paper currency, bonds, or deeds, which can be destroyed by fire or water. 

There is no maintenance required to keep gold and you can store it in your home. There are no additional costs involved in having gold and it cannot be erased like virtual currency. It’s an extremely safe way to store your capital.

Value Density

You can hold $50,000 of gold in your hands and store it in a small wall safe. It’s not like a motor vehicle, real estate, or paper currency, which takes up a lot of space. This also means it is easy to transport.

Requires No Specialized Knowledge 

You can hold gold coins and know their value without being an expert. This is very different from collecting rare gems or art, where you need to be extremely knowledgeable to know the value of the object you are purchasing.

How To Choose The Best Gold Coin To Buy

how to choose the best gold coins

There are several factors to consider when choosing which gold coin to buy, including:

Consider the purity of the coin

Aside from a coin’s age or rarity, purity is usually the main determinant of its value. The purity of gold objects can be measured in two ways: 

1. Karat (Carat)

Karat (KT) is the most commonly-used measurement of purity. It represents the proportion of gold that an object contains, with 24 Karat gold objects containing 24/24 parts of gold (considered to be made from “pure gold”). 

Gold of a lower Karat is mixed with other metals (usually zinc or silver). So, a 22KT gold coin would usually contain 22 parts gold and 2 parts zinc or silver. Some gold objects are intentionally made with a lower KT because it increases the durability of the object. For example, it is common for jewelry to be made from 22KT gold.

2. Fineness

Even 24 Karat gold can contain some impurities. Fineness is a way to show the extent of those impurities to a very fine degree. It is defined as the weight of the precious metal in proportion to the total weight, expressed in parts per 1,000. So, a 24KT gold coin might show have a fineness of 999.9, which indicates 0.1 of its total weight is another metal. Percentages are also used to display fineness, with 99.99% purity equaling 999.9 fineness.

Hallmarking

Hallmarking refers to any official writing or symbols on a coin. It is often used to specify the metal used in a coin, along with its weight, size, and purity (in Karat and fineness). Other details provided in hallmarking can include the mint where the coin came from and when the coin was made. Many coins will feature an “Assay mark” which is a type of logo that declares the coin was made by a specific mint. Hallmarking is important because it guarantees the quality and fineness of the coin.

Denominations 

The denominations for gold coins are based on weight, with the most common denominations ranging between 1/10th of an ounce through to 2 ounces. Some investors prefer to purchase smaller denominations as they have more flexibility when spending them.

Bullion or Numismatic

There are thousands of different gold coins available, but they all fall into one of two categories: Bullion coins and Numismatic coins. 

A Bullion coin is one that is made almost exclusively from a precious metal like gold. They are the preferred choice for many investors because they are made from highly refined materials and are usually minted by recognized institutions like government mints. 

When you receive a 1-ounce 24 Karat Bullion coin with 99.9 purity from the U.S. government, you know that coin contains the specified amount of gold and will retain its value. It is also easier to trade or sell as it has the hallmarking of official U.S. currency.

Bullion coins are also referred to as Sovereign coins, which means they have been manufactured by the government. The government will guarantee the face value of the coin, although this is usually much less than the value of the gold it contains.

A Numismatic coin is a rare coin that may be of interest to collectors. Although some of these coins contain a lot of gold, their value isn’t solely based on the amount of material the coin contains. It is also based on the coin’s rarity and condition. 

The cost of numismatic coins can stretch far beyond the value of the materials it is made from. Some coins are worth many thousands or millions of dollars. The most world’s most expensive numismatic coin is the first Flowing Hair Silver Dollar, which was made in 1794 and is now worth more than USD $10 million.

In most cases, it’s suggested that investors stick to bullion coins. That’s because it requires a significant amount of technical knowledge to assess and value numismatic coins. If you aren’t a knowledgable coin collector, you may pay too much for numismatic coins or purchase coins which do not appreciate in value. Rare coins also have less liquidity than bullion, because you need to find a collector who is willing to pay a premium for the coin.

One useful option is to buy semi-numismatic gold coins. These coins are made to be collector coins, but they don’t have the historical significance or rarity of a true numismatic coin. They may be increasing in value over time, but it is not guaranteed. You can consider any additional value achieved by the coin’s rarity to be a “bonus” to the value of the gold it contains.

Reputability of Seller

It is crucial that you only purchase gold coins from sellers who have an excellent reputation. This ensures that you are receiving exactly what you paid for. If you are buying new bullion gold coins, you can check that the seller is an authorized re-selling for the mint that produced the coin.

Aesthetics

Although the value of a bullion gold coin is determined by its weight and purity — some buyers are willing to pay a small premium for an attractive coin. Some gold coins have absolutely stunning images printed onto the coin, which make them more enticing for potential buyers. This may be a consideration if you intend on selling the coin to a private buyer in the future.

Circulated or uncirculated

A circulated coin is one that has been used as currency or shows signs of wear. It will have lost its “mint luster” from being handled (the distinctive sheen or luster that coins have after coming out of the mint). 

Uncirculated coins are in pristine condition and are often still in their packaging. If you believe the coin is semi-numismatic, it is often worth buying an uncirculated coin.

Packaging

If you are buying a brand new gold coin from a reseller, it should come in tamper-proof packaging. This helps to give you some additional certainty that the coin is authentic. Many private sellers will also keep their coins in this packaging, to make resale easier. It is a simple way to guarantee your coin is uncirculated.

The Best Gold Coin To Buy

We’ve taken a close look at the many gold coins on the market and identified 3 products that can offer good value for an investor. This post may contain affiliate links. This means if you click a link, I may earn a commission at no extra cost to you. You can read our full disclosure here. Our top 3 gold coins are:

American Gold Eagle 1-Ounce Gold Coin

2019 1 oz Gold American Eagle BU 1 OZ Brilliant Uncirculated
  • Photos in this listing may or may not be stock photos. The photos are meant to be an indication of the product you will receive.
  • Learn more about our 2019 Eagles Sweepstakes!The US Mint does not sell its bullion coins directly to the public.
2019 1/2 oz Gold American Eagle BU 1/2 OZ Brilliant Uncirculated
  • Photos in this listing may or may not be stock photos. The photos are meant to be an indication of the product you will receive.
  • Learn more about our 2019 Eagles Sweepstakes!The US Mint does not sell its bullion coins directly to the public.

The American Eagle gold coin is one of the world’s most beautiful and instantly-recognizable coins. Crafted by the U.S. mint, it is the official gold bullion coin of the United States. 

Offered in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations, this coin features a design created by the great Augustus Saint-Gaudens. One side of the coin features a group of American Eagles while the other has a beautiful depiction of Liberty.

According to federal law, the gold used in this coin must come from the United States, which is one of the reasons its popularity with patriotic Americans. It is a 22 Karat coin with a fineness of 91.67%. In addition to gold, it contains 3% silver and 5.33% copper for additional durability. The American Gold Eagle has a legal tender value of $50.

Because this coin is so popular within the United States, it is easy to trade or sell. Its value is immediately apparent to anyone who knows what the American Gold Eagle looks like. Another great reason to purchase this coin is that it is an approved investment vehicle for Individual Retirement Accounts (IRAs). American Eagle purchases to the public are also exempt from the IRS Form 1099-B reporting requirements.

Take a closer look at the American Gold Eagle 1-Ounce Gold Coin. The American Gold Eagle half-ounce gold coin is also an excellent option if you are looking for a smaller denomination.

2019 Canada Gold Maple Leaf 1-Ounce (Uncirculated)

2019 CA Canada 1 oz Gold Maple Leaf BU 1 OZ Brilliant Uncirculated
  • Photos in this listing may or may not be stock photos. The photos are meant to be an indication of the product you will receive.
  • The Maple Leaf has been a national symbol of Canada since the 18th century.

This is another beautifully designed bullion gold coin produced in North America. Minted by the Royal Canadian Mint, this 24 Karat coin has a fineness of 99.99%, which makes it popular with investors looking for extremely pure gold. In fact, the Gold Maple Leaf is one of the purest official bullion coins in the world.

It is a highly detailed coin that features a maple leaf on one side and a portrait of Queen Elizabeth II on the other. The maple leaf has a unique light-diffracting pattern of radial lines which make it much harder to duplicate. This acts as a security measure and it makes identifying a genuine coin easy. Take a closer look at the 2019 Canada Gold Maple Leaf 1-Ounce Coin. It is also available in denominations of 1 oz.,  1⁄2 oz.,  1⁄4 oz.,  1⁄10 oz.,  1⁄20 oz., and 1 gram.

British Britannia 1-Ounce Gold Coin

2019 UK Great Britain 1 oz Gold Britannia BU 1 OZ Brilliant Uncirculated
  • Photos in this listing may or may not be stock photos. The photos are meant to be an indication of the product you will receive.
  • Coin Highlights: Contains 1 oz of .9999 fine Gold.

This is another extremely popular coin for investors, as it has a very high gold purity (24 Karat 99.99% fineness) and is made by The Royal Mint of the United Kingdom. The purity and its official status make it very easy to value, trade, or sell.

The coin features a portrait of Queen Elizabeth II on one side and an image of Britannia on the other. It is available in one, one-half, one-quarter, and one-tenth of a troy ounce, with the one-ounce coin having a face value of £100. Take a closer look at the British Britannia 1-Ounce Gold Coin.