In times when the price of gold is reaching new heights, various gold coins are increasingly coming into focus as an investment. But what makes gold coins so special, and why are they suitable as an investment?
Why a Gold Coin Instead of Cash?
One of the main advantages of giving a gold coin is that it maintains its value over the long term. While cash can lose purchasing power over the years, gold retains its value and tends to increase in value over time.
Because money has been printed on a massive scale over the last 15 years, many investors and national banks are uncertain and are once again increasingly turning to the yellow precious metal.
Gold Coins or Bars?
Gold coins differ from gold bars not only in their shape and elaborate design, but there are a few more points to consider.
While gold bars can be produced by many gold refineries and smelters, only states can issue coins. In contrast to a bar, a coin has a nominal value in the respective national currency. This gives them a different legal status from bars.
This also makes them easier to trade internationally, which becomes particularly apparent when you want to sell a European gold bar in the US or vice versa. Gold coins are traded internationally on all continents. Furthermore, gold coins offer even more anonymity. While gold bars have serial numbers and are therefore traceable to a certain extent, gold coins are free of such markings, making it more difficult to trace investors’ private cash flows.
While the first investment gold coins were available almost exclusively in one-ounce sizes from the 1960s to the 1980s, today’s mints offer a wide range of different sizes. This means that the coins are not only available for different investment amounts, but savers can also purchase coins of different sizes according to their future liquidity needs. From 1/20 ounces to 1 kg (about 35 ounces), a wide range of weights are available.
Which Gold Coins are Suitable?
There are a variety of gold coins that are excellent for investment. In addition to the price, which plays a crucial role, personal preferences can also influence the investment decision. There are suitable products for specific interests and preferences:
For lovers of classic coins: the Krugerrand coin from South Africa, which depicts a springbok antelope and is one of the most famous gold coins worldwide. It was the first modern bullion coin worldwide.
For US patriots: the American Eagle is suitable. The coin bears the heraldic animal of the United States of America on the front and Lady Liberty as the personification of freedom on the back.
For animal lovers and America enthusiasts: the Buffalo coin is also suitable, which shows the eponymous buffalo on the value side and a Native American with feather headdress on the back.
For botany enthusiasts or Canada fans: the 1/4 ounce Maple Leaf gold coin, which depicts a maple leaf and is known for its purity and quality.
For music lovers: the Vienna Philharmonic coin from Austria, which honours the famous orchestra and is one of the best-selling gold coins in Europe.
For animal lovers: the Kangaroo or Koala coins, which depict Australian animals and are appreciated for their detailed design. Since the motifs change every year, they are an exciting alternative as a vintage gift for children.
For Francophones: A 20-franc piece from France, a historic French coin that originated in the Latin Monetary Union. It is decorated with the cockerel and Marianne. Due to its high prevalence, it can be an exciting investment coin.
Purchasing and Selling Gold Coins
Gold coins are offered in different ways worldwide. Traditionally, banks and reputable precious metal dealers with their own premises are the first point of contact. However, due to the widespread circulation and the relatively high premiums and discounts at banks and dealers, the coins are also traded between private individuals. While various platforms are used in the US, specialised platforms are developing in Europe. In Switzerland, for example, PreMeSec.ch has existed for a few years now, where private individuals can purchase and sell gold coins.
Conclusion
Gold coins are an excellent choice for investors. They symbolise stability, appreciation and financial security. In a world in which cash can lose its value, gold remains a stable store of value. Gold coins are available in different sizes and are therefore suitable for a wide range of investment amounts. Their international tradability and non-traceability are strong arguments for preferring them to bars.
