- Finance

The basics of investing in gold bullion coins

Gold is probably the world’s most stable investment asset. This precious metal comes in various forms. This metal is available as refined and unrefined gold, bullion coins, bars, ingots etc. These are all valuable; even scrap gold.

Not so long ago, gold coins were used as currency until the end of the gold standard and the international launch of fiat currency models. The role of gold bullion has shifted over the years. Bullion coins are seen more as investment items whilst other gold coins fall under collectibles. In general, the value of gold products depends on the quality and the amount of gold that is in the item itself.

Most experienced investors include gold in their portfolios to protect their investments and diversify. These are the kind of investors who believe that they can rely on gold to protect themselves against the unpredictability of the stock market and the rising inflation rates. Bullion coins are priced differently from collectible coins.

If you plan to buy gold bullion coins, there are a few things to consider:

  • If you are buying bullion ask if the gold dealer is accredited with the government that produces specific mints
  • The spot price and its movement
  • Transactional costs you have to pay when buying gold bullion coins


The main thing that distinguishes gold bullion coins from other gold coins is that they are made from the purest gold. They are also made by government bullion mints and typically have legal tender which means they are guaranteed by government mints.

The value of gold bullion coins you decide to buy depends on the amount of high-grade gold, craftsmanship, the age, the history, and the demand for that particular coin.

Gold bullion coins also have a stamp from the manufacturing authority. For instance, an Australian Kangaroo gold coin will have a Perth mint stamp, purity weight, and a face value on the surface; the American gold eagle coin will have a stamp from the U.S mint, and so on.

What are the best World gold bullion coins?

The oldest gold bullion coins to be created are the South African Krugerrands which were first minted in 1967. They are the world’s most popular and most recognizable gold bullions coins. Other countries also began to create their own gold bullion coins.

There are basically two types of gold bullion coins: Uncirculated gold bullion coins and proof coins. Uncirculated gold bullion coins are minted purely minted for investment purposes and sold to select authorised gold dealers. Proof gold bullion coins are specifically minted for coin collectors and are mostly sold directly by the mint itself. They come in a protective display case. Besides the South African Krugerrand, other popular bullion coins include The Australian Kangaroo minted by the Perth Mint, the Canadian Maple Leaf gold bullion coin produced by the Royal Canadian Mint, the Austrian Philharmonic, and of course the American Eagle gold bullion coin produced by the U.S Mint. Most of these coins are guaranteed by their respective government mint. These international coins might be popular and therefore easier to sell when the time comes for you to sell to a gold dealer, but remember that only the mint that created them can guarantee them.

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