Gold Coins: The Basics
Gold coins are much more popular amongst investors than gold bars because they can be easily exchanged, are easy to transport, and have a high value to weight ratio compared to other forms of gold.
How to Buy Gold Coins
Gold coins can’t be obtained directly from the mint, but they can only be purchased from sales agents who distribute them to the public. The mints take a premium over the gold coins and the agents add an intermediary fee. Although gold coins are not circulated as money anywhere in the world, collectors and investors for their beauty and value purchase them. They are prized as a hedge against inflation.
Gold coins are available to the public as a simple and practical way to hold and invest in 24 carat gold. The United States government guarantees their content and purity.
American Buffalo gold bullion coins are a popular form of gold coins. The U.S. Mint produces them for collectors. They can be obtained from precious metals dealers, brokerage houses and participating banks. An official certificate of authenticity signed by the Director of the Mint of the United States accompanies each piece. The price of a gold coin depends on the current market price of this metal.
How Gold Coins Are Made
Gold coin manufacturing is based on a process of manually feeding burnished coin blanks into presses with specific dies. Each coin is beaten several times in a gentle way so that a highly detailed image appears to float above the background.
Why Buy Gold Coins
Gold coins are considered a hedge against inflation. They reduce financial risk by creating balance in a portfolio. Additionally, they are prized by collectors for their historical significance and aesthetic qualities. The older the coin, the greater is the value. Especially prized among collectors are coins that were minted from 1792 to 1933. Gold coins, especially rare ones, must be backed by official government certification establishing authenticity and grade.