To Buy Gold Coins (online)

Gold Coins

When we last left our heroes, we were discussing the topic of beautiful Gold Bars for Sale.  Today, we’re going to focus on gold coins, and if you noticed in the title, we’re going to steer this article and your subsequent research toward online sources for gold.  The reason being that, unless you have an LCS (Local Coin Shop) near you owned by a trusted precious metals aficionado, you might have a bit of a tough time sifting and searching through all of the intricacies of gold in the coin, or “round” form.  (Gold coins are often referred to as rounds.)  Gold coins are not legal tender like many silver minted coins are, and you will find many types and sizes from as many countries as you can name.  This is because gold is the international currency recognized by just about every nation on the planet.

We’ve already discussed where to buy gold coins online; and let me remind you that you need to do your due diligence.  Make sure that the dealer with whom you’re dealing is reputable.  Check any reviews you can find for them.  Ask people on gold blogs who they’ve worked with.  Get a consensus.  You don’t want to be dealing with a scurrilous operation.  Just know that there really is no “best place” to buy gold coins online.  There are dozens and dozens of excellent operations out there.  I can recommend a couple if you shoot me a request.  So, how to buy gold bullion coins online?  Step 1:  Get online – oh yeah, you’re already there.  Step 2:  Continue reading…

buy gold coinsAs mentioned, countries and other private refiners produce gold coins.  If you want to get technical about it, these aren’t really coins, per se, as they have no monetary value.  Their value, of course, comes from the gold content contained in the coins (.999 or .9999 fine gold – check out the article on gold bars for sale for a brief discussion regarding the difference in purity).  As with gold bars, you’re going to run into a variety of sizes when it comes to gold coins; from coins as large as 5 ounces of pure gold, to as small as 1/10 or 1/25th of an ounce.  The most popular size by far is the 1 ounce gold coins.  Some of the most common of these are Krugerrands from South Africa, Austrian Philharmonics, Canadian Gold Maple Leafs, and of course US Gold Eagles.  You’ll notice that as you’re doing your research for your purchase that there is a variance in prices and premiums for the different coins.  Smaller sizes of gold coins will probably be a bit more expensive relatively speaking.  And you might find that the Krugerrands are less expensive than the Eagles or vice versa; this all depends on the current demand.  It’s just like any market, when something is popular, the demand is high and the price rises.  This is okay.  An ounce of gold is an ounce of gold and as long as you’re buying a commonly respected coin such as one listed above, or one minted from popular refiners, you’ll be fine.

If you plan on doing “straight up” gold investing, stick with these types of coins.  If you’re interested in “collectible” coins, or coins that have numismatic value, you really want to do more research – a lot more research because the value of collectible coins is determined by factors other than the amount of gold in the coin.  Something to keep in mind here, and a subject that is discussed at length in our Gold Confiscation article, is the possibility of a repeat of FDRs 1933 law that made it illegal to own gold.  Though the chance is slight due to a much different economic environment, it is still a possibility, and if it does occur, numismatic coins are considered merely collectibles and would not be subject to confiscation.  It’s something to think about…

Before we run, there are a couple of terms you should be familiar with when dealing with gold coins.  The first is “face value.”  Prior to 1933, gold coins were in common circulation here in the US – the Federal Reserve was just getting started and “real money” (aka GOLD) was recognized, accepted and exchanged.  Gold coins back then often had a dollar amount stamped on the coin – $1, $5, $10.  This was/is known as the face value of the coin.  Obviously, these coins were, and are, worth much more than the face value stamped on them.  However, if you wanted to exchange any of these coins, I’d be happy to give you paper dollars for the face value of them.  Just drop me a line.  I’ll even pay for shipping – ha.  The second is AGW, or Actual Gold Weight.  You’ll hear this term when dealing with older coins or foreign coins.  The actual gold weight is exactly what it sounds like – it will be a decimal expression of how much of an ounce of gold is contained in the coin.  An example would be something like AGW = .875.  That means that the coin contains that much gold.  To find the value of the coin, multiply the AGW x the current spot price of gold.

If you need specific details about making your online purchase, check out the articles Where to Buy Gold and Gold Bars for Sale.

Finally, in case you were wondering, a “dubloon” is the Spanish word for “double”; a gold coin that weighed about 7 grams.

Thanks for reading!  More soon!  J.

Comments are closed.