Commodity Futures Trader

Gold bullion coins are increasingly being turned to by both investors and ordinary families as way of preserving their money in these financially turbulent times. They feel better if some of their savings are in the form of gold, rather than cash, bonds or other paper promises. They also want to actually have their wealth in their hand – really in their possession.

So, what exactly are gold bullion coins, where do you get them, and how much do they cost?

A century ago, gold coins were used as standard currency in many countries, and were in general circulation. In the USA, these were the famous and very beautiful quarter eagles, half eagles, eagles and double eagles, which were last issued in the’30s, and are now sought after by collectors. After a gap of thirty or forty years, countries began to issue gold coins again, but not for circulation, since gold had simply become too valuable.

These days when people refer to gold bullion coins, they are talking about the modern format of them, which are issued by governments in one ounce, or fractions of one ounce weights, and which are meant only for collection or investment. They represent an accessible and relatively inexpensive way (when compared to the larger and heavier gold bullion bars) for ‘normal’ people to buy and own gold.

In the USA, gold bullion coins are called American Gold Eagles. In Canada, they are called Canadian Gold Maple Leafs. In South Africa, the coins are called Krugerrands. In China, they issue Gold Pandas. The names are derived from the designs they carry.

All these different gold bullion coins are issued in the same actual gold weights – one ounce, half an ounce, a quarter of an ounce, a tenth of an ounce. The bullion coins can be either pure gold, or they may have a small percentage of silver or copper added to them to make more durable. Those which do have some other metal added to the gold are just as valuable as the pure gold ones though, as as they always have an ‘actual gold weight’ of one ounce of gold, or of one of the previously stated fractions.

The coins will normally have on them the year in which they were issued and a face value. However, the value stated on them is not what they are actually worth, they are in fact worth much more than that. The price of a coin would be the current spot price of gold, plus a ‘premium’ determined by the market or by the dealer. So, a one-ounce American Gold Eagle is worth more than $1000 today.

Gold bullion coins have traditionally been bought from a dealer or a local coin store, but in recent years the Internet has opened up two new ways of purchasing them. One of the new ways is through online auction sites, and the other is through specialist online coin stores. These specialist online coin stores are the best way for most people to buy because you can view all types and weights of coins in one place, and can purchase them at prices which are generally lower than elsewhere.

To find out more about bullion gold coins, read about the types of coins available, and to check current prices, go to bullion-gold-coins.com and get the information you need to know before you buy.

categories: gold bullion coins,gold coins,gold,personal finance,finance

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