Gold Coin Options

Although many gold coins are available for an investor, only 2 main types stand out. The gold bullion coins and the rare gold coins. Gold bullion are strictly for a hedge against inflation; hence they form a good basis to own gold whereas numismatic gold coins or rare gold coins which are typically used to privately grow wealth over the long-term.

Gold Bullion Coins

The large market size for gold bullion coins makes them a favorite with many people. Gold bullion coins hold many benefits for their owners; security, safety, convenience and liquidity. But the best benefit of all is great potential profit as the coin’s value is directly related to the current gold price.

The Krugerrand from South Africa was the first modern issue gold bullion coin that surfaced in the market in 1967. This should not be surprising as South Africa has always led the pack in exporting gold; it is still the world’s leader in gold exports. The South African Krugerrand enjoyed its fame for a long time as many individuals took it as a means to possess gold. This is precisely the reason that the term ‘Krugerrand’ was interchangeably used with ‘gold coin’ during its hey days; just as one associated ‘Kleenex’ to facial tissue or ‘Xerox’ to photocopiers at the start of the respective industries.

But other countries caught on with South Africa's innovation with gold coins and started minting their own special gold bullion production. Now, the market offers the American Gold Eagle, the American Gold Buffalo, the Canadian Gold Maple Leaf, the Gold Australian Kangaroo and the Austrian Gold Vienna Philharmonic.

Rare Gold Coins

Rare gold coins can be collected for either investment purposes or just to own gold; some rare gold coin owners do not even bother to make a distinction of their collection.

US gold coins that were minted from 1795 to 1933 are classified as rare gold coins because the US Mint discontinued the minting for circulation. There were many denominations of rare gold coins distributed in the 138 years when these gold coins were minted. Sometimes, the US Mint minted various denominations of gold coins for commercial circulation such as $1.00, $2.50 (also known as Quarter Eagle), $3.00, $4.00, $5.00 (also known as Half Eagle), $10.00 (also known as Eagle) and $20.00 (also known as Double Edge).

Although small in size, the US Gold Dollar came in 3 types-I, II and III; it was minted between 1849 and 1889.

The Quarter Eagle's denomination is $2.50 and was minted between 1796 and 1929 sporting 7 different motifs.

The US gold coin that is stamped with $3.00 is the Indian Princess that saw its mintage from 1854 all the way to 1889. The US $4.00 gold coin was called ‘Stella’. It was minted as an experimental piece in 1879/80; hence there are very few pieces. The Half Eagle gold or US $5.00 gold coin came in 8 varieties of designs when it was minted.

The Gold Eagle of $10.00 came in 4 unique designs during its mintage between 1795 and 1933. The Double Gold Eagle of $20.00 is the largest among the US gold coins issued; it was minted between 1849 and 1933 with 2 designs.

These gold coins are in high demand because of the gold content in them as well as their beauty, rarity and historical relevance.

Different Forms of Gold that have Value

Gold has many different factors that creates its value. There are those that own gold in the form of jewelry while others own it in the form of gold bars or coins.

Yellow gold which is the most common form of gold that you can find is often not 100% pure. Copper and silver are added to make it more durable as gold itself is a soft metal.

To create what is know as white gold, nickel or platinum are added. White gold is common in jewelry and has a greater expense than jewelry made with yellow gold on average.

Rose gold is another common form of gold used in jewelry and also typically carries a greater value than yellow gold. A combination of gold and copper gives it its reddish tint.

A key aspect to the value of gold is the purity. The purity of gold is often referred to in karat, as 24 karat is considered pure gold. A 22 karat gold watch would be 91.7% pure. Most jewelry is not 24 karat as the copper or silver are added to make the metal harder for daily use.

People also buy gold for the financial value. Gold is considered an asset more than a pure investment. Gold bullion is one of the most popular forms for holding gold in your portfolio. Common gold bullion is the American Gold Eagle, Canadian Gold Maple Leaf, and the South African Krugerrand. Gold bullion can be bought at different weights for each person's different buying needs.

Gold can also be purchased in what is called rare gold coins. Product of these gold coins was stopped in 1933 and have a scarcity factor to them that increases their value. Rare gold coins is considered a private position in gold which is beneficial for many people as a preservation of wealth. To greater understand the difference between gold bullion and rare gold coins it is best to contact a reputable gold brokerage firm for more answers.

Gold Coin Sales Increased Across the Board Last Week

Slower numbers of numismatic gold coin sales have picked up over the last week. According to US Mint sales figures, gold coin buyers have increased sales across the board of numismatic rare gold coins. Also, figures show an increase over the last week in bullion sales as well.

The increase in demand for gold coins included First Spouse Gold Coins, Buffalo Gold proof coins, and Gold Eagles to name a few.

New into gold circulation the James Buchanan Presidential Dollars deputed to orders of 46,096 of the 2 coin rolls. The number is 2,024 lower than the Franklin Pierce debut. Though too early to tell, the James Buchanan $1 US Mint coin may end up being the lowest minted presidential coin.

The Platinum Eagles went on sale August 12th and by August 19th had reached their 10,000 limit. The Platinum Eagles coins were officially added to the US Mint sold out list on August 23rd.

The 2010 Platinum Eagles sold out faster than the last years mintage which took just over a week to sell out.

Liberty Gold Coins: A Walk Down Memory Lane

Liberty gold coins are one of the most recognizable coins in the United States. These coins were said to be the building blocks of America’s trade and industry in the 19th and 20th century. Liberty gold coins find a unique place in American history, along with the Great Depression, the likes of Ford, Durrant, Rockefeller, and the American Civil War. Liberty gold coins, in fact, witnessed the birth of industrial America well before Edison invented the light bulb, Bell invented the telephone, and Mark Twain wrote his classics. In the 21st century, Liberty gold coins have found favor with coin collectors, antique dealers, and Wall Street hotshots for their beauty, rarity, and rich historic value. Coins from the original 13 states, both south and north of the Mason-Dixon Line, come under the auctioneer’s hammer regularly.

Liberty Gold Coins: Types

Liberty gold coins were minted in the form of $20 gold coins, $10 gold coins, $5 gold coins, and $2.5 gold coins. Liberty’s production started during 1849 and finally wound up in 1907, but remained in business till 1933. Minted in Philadelphia, San Francisco and New Orleans, these gold coins adorned the collections of Iacocca, Du Pont, and even JFK.
The $20 gold coin, designed by James Longacre, featured Lady Liberty with the word “LIBERTY” inscribed on the bottom of the coin. Thirteen stars, representing the 13 states, encircled the Lady. The other side of the coin featured the American bald eagle with the words “UNITED STATES OF AMERICA” encircling it.

The $10 gold coin, designed by Christian Gobrecht, featured Lady Liberty with the word “LIBERTY” engraved on her coronet. The $10 coin was minted in 1838 and continued till 1907. The reverse side of the coin featured the bald eagle, with three arrows in its talons and perched on olive branches. The eagle was shielded by stars and stripes on its chest. These coins were minted in the Philadelphia and San Francisco mints. The Denver mint joined the bandwagon around 1906.

The $5 gold coins were authorized by the US Congress to be manufactured in the US Mint on April 2, 1792. This coin, also known as the “Half Eagle,” was minted in 1866 and continued till 1908. Struck at seven different American mints through its life, the coin featured Lady Liberty with the word “LIBERTY” engraved on her coronet and adorned by 13 starts that represented each of the 13 states. The reverse side of the coin was identical to the $10 coin with the words “UNITED STATES OF AMERICA” surrounding the eagle.

The $2.50 gold coins were similar to the $10 and $5 counterparts, expect that it was first minted at 1840. The Philly mint started the production and additional coins were struck at Charlotte, New Orleans and Dahlonega.

How to Buy Rare Gold Coins

Buying gold coins requires preparation and learning. Before you buy your first coin, you should commit yourself to learning as much as you can about coins, so that you can make an informed buying decision.

This won't guarantee that you will make a profit from your investment in rare gold coins, but it will increase your chances greatly.

There are many resources available in print and online to help you educate yourself about rare gold coins.

You should start with The Guidebook of United States Coins, popularly referred to in the industry as the "Redbook." This book lists every coin ever minted by the U.S. mint which will enable you to know what's out there. It also gives brief histories and descriptions of the coins and lists their original mintages.

A couple of notes of caution are in order, however.

First of all, original mintages are not always indicative of current rarity. The key to current rarity is the number of surviving specimens believed to be around today. In some cases, issues with small original mintages have high survival rates, making them relatively less scarce today. Conversely, some issues with very high original mintages have experienced huge attrition rates, primarily due to meltings, and thus are very rare today.

Second, the Redbook lists prices which are not at all reflective of current market value. This is because the Redbook is published annually and the coin market trades actively throughout an entire year. There is simply no way for an annual guidebook to accurately indicate the current price of a rare gold coin.

We will let you in on an important fact now, before you embark on your education process (you will discover this on your own later anyway): you should only buy rare gold coins which have been graded and certified by Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). PCGS and NGC are the two leading independent coin grading firms whose standards have been accepted industry-wide for many years. Buying rare gold coins which have been graded by lesser services creates too much risk and should be avoided.

Just as is the case with any major purchase, you need to know what you are acquiring. Make sure that you are getting advice based upon your goals and objectives. There are many ways to acquire gold across that asset class. Therefore you need to make sure you are applying the right tool to the right job. Lower graded, higher population type coins will tend to perform more like asset protection, whereas higher graded rarer issues will tend to grow more over time.

In addition to buying the right coins for you, you should also compare coin dealers. You will want to buy coins from a dealer who is reliable and can provide you with the level of service and education that you desire. Not all dealers provide ongoing client education in the form of newsletters, special reports and periodic, complimentary portfolio updates. Before you decide to buy a rare gold coin from a coin dealer, you may wish to know what your relationship with that dealer is going to be like.

One final note in comparing dealers: you should check to see what each dealer's rating with the Better Business Bureau is before making your final buying decision.

ITM Trading offer expert advice on how to buy gold coins including rare gold coins.

Where Can I Buy Gold Coins?

When it comes to buying gold coins, today’s investors and collectors have more choices than ever in terms of where they can obtain coins.

An Historical Perspective on Buying Gold Coins

Today, there are two broad varieties of gold coins from which to choose: rare gold coins, such as the Saint-Gaudens Double Eagle (minted from 1907 to 1933) and gold bullion coins, such as the American Eagle gold bullion coin.

But from 1933 to 1975, there were no gold bullion coins, such as the Gold American Eagle, because, believe it or not, it was illegal for United States citizens or foreign residents in the U.S.A. to own gold. During that period, the only gold coins that were permitted for private ownership, and thus eligible for sale, were “gold coins of special interest and value to collectors”—in other words, rare gold coins.

Even so, during most of the period 1933 through the end of Second World War in 1945, few Americans could afford to buy and own rare gold coins. Rare gold coins were a luxury that just could not be justified during the decade of the Great Depression and the four years of World War II from 1941 to 1945.

The few Americans who could afford to buy rare gold coins during the period from 1933 to 1945 were usually the very wealthy and they obtained their gold coins from a few elite, specialized coin dealers (called “numismatists”). These dealers were often unknown to the general public and traveled in strictly upper class socioeconomic circles. It is no wonder that coin collecting got the label “the hobby of kings.”

After the Second World War, America was transformed. It’s economy was transformed by the rapid industrialization and modernization which had occurred to support the arsenal of democracy and America’s society and culture was transformed by the millions of returning servicemen who had made the world safe for democracy, had been to places that no one in America had even heard of before the war and who wanted to start families and live the good life back at home.

This transformation also had an impact on the coin business. In the post-World War II period, more prosperity meant that more people could afford rare gold coins. To be sure, rare gold coins were still not items that the average American could afford to collect, but, nevertheless, more Americans could afford them than ever.

Inevitably, more buyers of rare gold coins meant more dealers of rare gold coins and these new dealers were not always the elite, wealthy individuals that had sole control of the trade back in the 1930s and 1940s.

The post-World War II years saw the establishment of coin shops across America. Not all coin shops could afford to maintain inventories of rare gold coins, but some could and such retail outlets became a viable option for finding at least some lower-end rare gold coins.

Coin shops really boomed in the 1960s and it was not uncommon to find some rare gold coins in just about every shop.

The Legalization of Gold and the Introduction of the Krugerrand

The coin market became even more transformed after 1975, when the law that made it illegal for private collectors and investors in the United States to own gold was suspended.

This was followed by a whole new phenomenon: South Africa’s Krugerrand.

In the late 1970s, the world’s largest gold producing nation, the Republic of South Africa, introduced a new gold coin: the Krugerrand (named for one of the country’s early leaders).

Unlike rare gold coins such as the Saint-Gaudens Double Eagle, the Krugerrand was mass produced on modern, high-speed machinery and was never meant to be rare. Therefore, its value was strictly tied to the one ounce of gold it contained.

A brand new investment category was thus born: gold bullion coins.

Buying Rare Gold Coins and Gold Bullion Coins Today

Today, investors and collectors have several choices when it comes to buying gold coins:

• Coin Dealers
• Coin shows
• Local Coin Shops
• Banks (Usually banks only sell bullion coins.)
• Brokerage houses (Like banks, brokerage houses customarily only sell bullion coins.)