Leading economists have predicted that an economic crisis is fast approaching, with slightly differing opinions on how it will impact economies and assets; however, they all agree that the value of gold will continue to increase.
Precious metals, such as gold bullion coins, have long been seen as a safe haven in difficult economic periods, and this year has already seen record-high prices for gold.
The central banks have been buying up the precious metal aggressively, and by the end of March 2023, they had bought 228 tons of gold, the highest purchase rate in at least 23 years.
So where is the best place to buy your gold? Should I buy gold stocks, bullion, or coins? Keep reading our Ultimate Guide to Gold Coins to find answers to your gold questions.
Are you a high-net-worth individual who would like to diversify your portfolio by investing in precious physical metals?
At Nomad Capitalist, we create holistic strategies for high-net-worth individuals to protect all their assets, including physical gold. We advise on the best jurisdictions to buy, store and protect your gold investments outside the banking system.
Why Buy Gold Coins
What are the main benefits of gold investment vs. other types of investment? For one thing, gold offers stability and security.
Gold, on average, appreciates 10% per annum and has been valuable to us as a civilization for more than 4,000 years.
It is an asset that you can rest assured will be here in 10 years, 20, or 100 years.
When you look at other assets, real estate, bonds equities, you may wonder how long they will remain in the game. How long will this company be in business? How long will this company or government issue bonds? There are a lot of question marks, especially in the long term and as things become less stable and change rapidly.
Whereas gold offers stability, it’s a store of wealth and beats inflation every day of the week.
Interestingly gold performs on par with the American Stock Exchange. So if you’re looking at the horizon, gold is doing as well as the S&P, NASDAQ, and other assets.
Gold offers safety and security because it has an inverse correlation to the market. It provides diversification to your portfolio because when other assets are doing very poorly, gold will usually perform very well in terms of pricing, for example, during the 2020 pandemic period. So, that’s why gold is used to hedge or diversify.
Types of Gold Coins
Gold has been used as currency for thousands of years, but in 1971, the world moved away from using gold as a standard for fiat paper money.
Today, many people own gold on paper, which not only creates problems for financial systems, but when holders claim their gold, they will soon realize there is not enough to go around.
“If you cannot hold your gold, you don’t own it.”
Paper gold may be a good vehicle for short-term trading, but if you’re looking at gold as an insurance policy as part of your wealth protection or wealth preservation strategy, stay away from the paper gold products because you don’t own the actual asset.
You expose yourself to counterparty risk and someone not delivering on their promise. Paper gold is also subject to government control, meaning they can reach them easily, and is reported through CRS and FATCA.
That’s why our experts emphasize the importance of physically owning the gold rather than just owning it on paper.
What type of gold you buy depends on your incentive for the investment. Buying gold coins has some advantages over gold bullion bars. Gold coins are more convenient to buy and sell in large quantities. Unlike selling a whole asset, small gold coins allow investors to sell a few coins as they wish.
Many people love the convenience of gold coins. What happens if I need safe passage? What happens if the ATMs stop working?
Every year new gold coins appear on the market. Let’s focus on the most popular and reliable providers of the purest gold coins.
Stick to the LBMA products, meaning the London Bullion Market Association, which is the association that monitors all the global players in the gold industry, from refiners to vaults to shipping companies.
Canadian Gold Maple Leaf
The Royal Canadian Mint produces one of the purest coins in the world at 99.99% purity.
You can purchase the Canadian Gold Maple Leaf in sizes: 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz.
The Canadian Gold Maple Leaf has been around since 1979 and features the image of the late Queen Elizabeth II and, on the other side, the iconic national maple leaf.
Austrian Gold Philharmonic Coins
The Austrian Mint has been producing the Vienna Philharmonic Gold Coin since 1989. Like the Canadian Maple Leaf, it is pure at 99.99%.
You can purchase the Gold Philharmonic gold coin in sizes of 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz.
The favored gold coin across Europe has the image of the famed Vienna Philharmonic Orchestra.
Australian Gold Kangaroo Nuggets
The government-owned Gold Corporation started printing the Australian Gold Kangaroo Nuggets in 1986. Since 1996 Pert Mint has been producing the Gold Kangaroos gold coins.
You can purchase the Australian Gold Nugget gold coin in sizes of 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, 1 oz, 2 oz, 10 oz, and 1 kg.
The Gold Kangaroo features the late Queen Elizabeth II and a picture of the iconic Australian kangaroo.
South African Gold Krugerrands
The Gold Krugerrand from South Africa is considered the first modern bullion gold coin and continues to be among the most sought-after gold coins in production.
You can purchase the South African Gold Krugerrands gold coin in sizes of 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, 1 oz, 2 oz, 10 oz, and 1 kg.
The South African gold coin showcases the portrait of the South African Republic’s primary leader, Paul Kruger, while the reverse features the Springbok Gazelle, the national symbol of South Africa.
We don’t recommend buying American Gold Eagle coins, such as Gold Eagles, as you will likely pay a higher premium, and they are not as well received as the coins listed above.
Where to Buy and Store Gold
We always suggest buying coins from mints.
Mints produce investment-grade gold bullion and coins with distinctive features that make them readily recognizable, verifiable, traceable, and easily authenticated. The gold they produce, whether in the form of bars or coins, is highly liquid, authentic, and universally acknowledged.
Refineries and government mints are recognized and follow stringent standards, and its pure gold is accepted and traded easily worldwide.
When buying and storing your gold bars or gold bullion coins, they should always include specific authenticity details, like numbers and hallmarks. Choosing a gold storage company that confirms you own the gold directly is also very important.
Are you a novice in the world of gold? Where should you buy gold? How do you safely transport and store gold? You might recognize the value of this asset but don’t know how to get started.
Nomad Capitalist, along with our gold experts, J. Rotbart & Co, provide a comprehensive gold investment solution, meaning they source precious metals from the best refineries in the world and handle transportation and storing gold in 13 different locations and shipping from 40 different countries, including from clients’ houses or wherever the clients feel safe.
They ensure it, and as an add-on service, allows clients to convert their assets to crypto and vice versa securely.
Some choose to store their gold in a home safe, under the carpet, or wherever. Obviously, the risk associated with storing your assets at home is considerable. Others put it in the bank, safety deposit box, or bankroll.
The problem with this, and what a lot of people don’t understand, is that there’s no insurance in bank vaults. The gold is not insured if someone breaks into the vaults.
Another significant issue is that these days, most banks specify in the contract that they are entitled to break into your safety deposit box if they have suspicions of offense, which is very broadly phrased and basically allows the government and banks to do whatever they want, with your assets, whenever they want.
This is why we recommend always using private vaulting facilities, such as the one Rotbart offers. Another benefit is that most storage facilities offer you insurance coverage as part of the service. You can turn your purchase of gold into a professional investment.
Banks have stopped building new vaults and go to private vaulting companies to store gold because even they understand the value of specialized gold storage companies.
Why You Shouldn’t Buy Numismatics
Numismatics are collectible gold coins that can hold more value due to demand, rarity, or age. The Smithsonian Collection is one of the biggest numismatic coin collections in the world.
If you are not an expert, stay away from the Numismatics markets.
Knowing the different types of gold bullion coins is crucial because the prices can vary greatly, and these old coins can be sold for up to four times the price of a standard ounce of gold. But if you don’t fully understand what you’re buying, you will soon find yourself in hot water.
Don’t buy from companies with cheesy gold coin rounds with a gun on them, or as tempting as it might be, with Elon Musk’s face.
It may go without saying but don’t buy on the likes of eBay. You might find attractive prices on eCommerce sites. If a gold price seems too good to be true, it is. It’s always best to stick to coins from mints.
The Rich History of Gold
Gold has had a complicated and rich history in the United States, including the infamous FDR’s 1933 Gold Confiscation.
US President Roosevelt issued Executive Order 6102, which ordered US citizens to surrender nearly all gold coins, bullion, and certificates to the Federal Reserve. For every troy ounce, they received $20.67.
Disobeying the order meant paying a fine of up to $10,000 or possible time in prison.
The Gold Reserve Act was enacted in January 1934, requiring the surrender of all gold and gold certificates held by the Federal Reserve and granting them only under the title of the United States Department of the Treasury. This Act changed the gold dollar value from $20.67 to $35 per ounce.
President Nixon then declared that the era of the gold standard for foreign exchange had ended in 1971. This followed a long period in which the price of gold remained fixed.
In 1974, President Gerald Ford repealed the Executive Order used by Roosevelt to recall gold in 1933, with Congress’s decision to restore Americans’ rights to own gold.
Gold American Eagles became one of the most renowned gold coins in circulation after President Reagan signed the Gold Bullion Coin Act, giving the US Mint permission to produce gold coins in 1985.
Reflecting on the US government’s history of taking away the public’s gold and controlling prices, some wonder whether it could happen again.
Safe jurisdictions that offer security and have a proven record. At Nomad Capitalist, we advise our high-net-worth clients how to store their gold in the best places to store gold offshore. These include Switzerland, Liechtenstein, Singapore, New Zealand, and Austria. These countries are superior for storing precious metals outside traditional banks.
Deciding on which gold coin is the “best” depends on a number of things, including your personal investment goals and budget. Some of the most popular and pure gold coins include:
Canadian Gold Maple Leaf
Austrian Gold Philharmonic
South African Krugerrand
Gold is usually priced in US dollars per ounce. The current value of one of the world’s most popular gold bullion coins, Krugerrands, is $1,954.28 for a 1-troy-ounce coin. To get an accurate value of gold, you need to keep track of changes in the underlying spot price of this metal.
The weight of a gold coin can vary depending on the coin type. Bullion coins typically weight ranges between 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz. Other coins, such as numismatic, can range from a few grams to several ounces.
Gold coins are a proven investment option for anyone looking to diversify their wealth and investment portfolio and hedge against inflation. Gold is less connected with traditional assets like stocks and bonds, so prices are often not adversely affected.
The price of gold is affected by a range of factors, including economic conditions, political circumstances, and investor sentiment.