Given the state of the world financial markets at the moment gold coins are of particular interest. They are of interest to coin collectors who wouldn't normally collect them, and to investors looking for a way to invest in gold. Gold is seen as a hedge against turbulent financial times, it will always be desireable and valuable and even when stock markets are crashing, currencies are being devalued, and banks are going bankrupt. The question to ask when purchasing gold coins is why you doing so.
If you're a collector of coins then in most cases the bullion value of a gold coin should not enter into your decision making process. As always, purchase the best coin that you can afford, one that has eye appeal, fits with your collecting interests, and strikes a balance between grade and cost. The range of gold coins available to the collector is huge, you can collect anything from roman aureii or solidii, through to hammered medieval gold coins, up to modern proof bullion issues.
It you're just looking to acquire gold for investment reaons you'll want to be able to purchase gold coins at or very close to the actual bullion price. For this I'd suggest either modern bullion issues such as American gold eagles, Canadian gold maple leafs, or Australian gold nuggets. If you want something with a bit more interest you could look for common date gold sovereigns from countries such as Great Britain, Canada, South Africa or Australia. However, you may find it most cost effective to buy gold in one ounce ingot or 'biscuit' form as these are usually available at a very small premium above bullion value.
Saudi Arabia 1950 Guinea
The above Saudi Arabian guinea is in nice uncirculated condition. In times of lower gold prices it's collectable value outweighs the intrinsic gold value that it has. However, with gold being the current price that it is, this coin is worth more in gold than what the so called 'collectable' value of the coin is. This presents a problem to the true coin collector, because he or she is now competing for such a coin with people simply looking to purchase it for investment reasons.
Australia 1874 Sydney mint Gold Sovereign
The above Australian Sovereign is well circulated (perhaps Fine condition). It is not a scarce year or mint mark and thus will never be worth much more as a collectable coin than what the bullion value is. This is the sort of coin that a gold investor might purchase as a cheap way of obtaining the metal but still having a coin with some interest and history.
Posted by mnemtsas at October 31, 2008 11:31 AM
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