Buying Gold Bullion Coins

In the current financial climate of weak currencies

, inflation and general insecurity, many investors and ordinary families are turning to a reliable and time-tested form of wealth preservation - gold bullion coins. They feel better if some of their savings are in the form of gold, rather than cash, bonds or other paper promises. They also want to actually have their wealth in their hand - really in their possession.

So, what are gold bullion coins? How much do they cost? And, where can you get them from?

A century ago, gold coins were used as standard currency in many countries, and were in general circulation. As an example, the USA used to use quarter eagles, half eagles, eagles and double eagles. These are now sought after by collectors, having last been issued in the 1930s. After gold coins ceased to be circulated in the 30s, there was then a gap of a few decades before they were again re-issued. However, as gold had by that time become so valuable, the coins that made up the re-issuing were not entered into circulation as a standard form of currency.

When people talk about gold bullion coins, they mean the modern gold coins issued by governments in one ounce, or fractions of one ounce weights, which are not for general circulation, but for collecting or investment. They are intended to be an easy and relatively inexpensive way for citizens to own gold (inexpensive compared with larger and heavier gold bullion bars).

In the USA, gold bullion coins are called American Gold Eagles. In Canada, they are called Canadian Gold Maple Leafs. In South Africa, the coins are called Krugerrands. In China, they issue Gold Pandas. The names are derived from the designs they carry.

All the governments that issue these gold bullion coins use the same gold weighting scale, with them being available in the following values: one ounce, half an ounce, a quarter of an ounce, and a tenth of an ounce. Sometimes the bullion coins are pure gold, sometimes they have a small percentage of silver or copper to make them harder wearing, but they always have an 'actual gold weight' of one ounce or a fraction of an ounce as stated on the coin.

The coins will normally have on them the year in which they were issued and a face value. Of course, the gold in the coins is worth far more than the face value. The price of a coin would be the current spot price of gold, plus a 'premium' determined by the market or by the dealer. So, a one-ounce American Gold Eagle is worth more than $1000 today.

Gold bullion coins have traditionally been bought from a dealer or a local coin store, but in recent years the Internet has opened up two new ways of purchasing them. One of the new ways is through online auction sites, and the other is through specialist online coin stores. These specialist online coin stores are the best way for most people to buy because you can view all types and weights of coins in one place, and can purchase them at prices which are generally lower than elsewhere.

by: Mark Thomas Walters

POST COMMENT

Aypearl.com Explain The Gemstone Enhancements And Care Aypearl.com Interpret Pearl Mix With The Wedding Dress Vintage Engagement Ring An Attractive Choice Scrap Gold- How Much Cash is in Your Jewelry Box? “Nikkei Financial”- Gold Price Sets Consecutive Records… How To Take Care Of Diamond Engagement Ring? Goldbach’s Conjecture about the Parts of Watch An Amazing Crystal Called Cubic Zirconia Talisman: Kabbalah Jewelry For Good Luck Charm Cubic Zirconia Jewelry Trends Tungsten Rings Seven Tips To Find A Perfect Engagement Ring Choosing A Celtic Bracelet That Is Perfect For You