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A coin can fall into any of the following four main types: numismatic or semi-numismatic, proof and bullion. These 4 categories may differ in their valuation with each having advantages and disadvantages when it comes to gold coin investing.
The bronze coin is valued at just a few pennies but has no financial value whatsoever outside of the community it was minted in. The sterling silver coin’s worth depends on the age and the clarity of the silver it’s made from, but its biggest flaw is that it often scratches and the date can be easily worn off. The platinum coin, valued at around $7, is more valuable, but because it is usually quite thin, a strong coin can dent or bend very easily.
The gold coin is the most commonly used, valued at about $400 per ounce. Also, be aware that numismatic coins cannot be included in precious metals IRAs.
But, for investors who have no need to worry about taxes on their investments, gold is still a good option.
Best Types Of Gold Coins
Bullion Gold Coin
Bullion Coins are a great way to invest.
They are available in various sizes and shapes, with the most popular options being one-ounce coins or one-kilogram coins. Gold Bullion has a good weight and sharpness. It is important to remember that coins issued by countries other than the US are not recognized as legal tender within the US and may not be backed by any government or central bank. It is commonly misunderstood that bullion only presents itself in gold bars.
Gold coin bullion is also made from this type of precious metal.
Proof Gold Coins
The two most common types of coins are the sovereign and the Krugerrand. The sovereign is a coin from the United Kingdom, while the Krugerrand is from South Africa.
Sovereigns are valued as a store of value in the same way that bullion is. Bullion coins are available as 1oz, 2oz, 10oz, and even 1 kilo. These coins vary in size based on the number of ounces that they are comprised of.
They tend to be of higher quality than bullion coins and are struck multiple times under immense pressure. This gives them incredible details and a smooth flat shiny appearance on flatter surfaces.
Proofs are very clean, specially treated, and meticulously polished by hand to ensure a consistent finish. There are fewer made-proof coins in circulation than bullion making them more valuable to the right person.
Numismatic is generally made of gold or silver, produced to be collectibles. They have collectible value as well as monetary value.
Some of the more famous or rare coins may sell for a premium. In contrast to bullion, these are minted only in limited quantities and are used by investors as a hedge against market uncertainty.
Typically issued by government mints and legal tender, usually intended for commerce, transportation, and trade. Because of this, they are a lot older in age, gaining value amongst the collector’s community. The specialty coins with a numismatic value of $20 or under are popular in Liberty gold coins.
Semi-numismatic gold coins have a value that fluctuates with the marketplace. The value of these coins is not always dependent on the country or year of issue.
Having similarities between numismatic and the gold bullion type of coin. They generally have a limited number in originally proceeded so fewer in circulation.
This makes them an attractive investment to both collectors and people looking to invest. This also leads to semi-numismatic coins having the ability to be valued more than bullion coins.
Semi-Numismatic vs Numismatic vs Proof vs Bullion
These 4 different types of gold coins are all a great investment in their own way. Bullion will tend to go up or down depending on the gold price. This is due to it being as closely matched to solid gold as the rest. This is what will typically be used in your Gold IRA.
With Numismatic coins not being minted anymore, they can be valued a lot higher than the gold price. It can be an area that needs a lot of research and you will have to hone your skills by reading up on all things numismatic. This will take up time and require a substantial knowledge base.
Semi-numismatic has the benefit somewhere between bullion and numismatic gold coins. Low minted (less in circulation) can be a great way to diversify your portfolio.
Proof coins can be a great investment due to their superior quality and the fact they’re made in limited quantities. They are especially good for beginners into the gold investment arena as they are a safe bet but will almost always be likely to track higher than than the gold spot price.
We hope that cleared up the different types of gold coins that are available to you when thinking of investment opportunities.
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