There are different gold coins more suitable for investment purposes than for collection reasons. Collector, or numismatic, gold coins often sell at high premiums over their gold content. Investors who want to buy gold coins as a hedge against inflation or financial security in the face of a potential economic collapse should not invest in this type of coin. Instead, they should purchase gold bullion coins.
A gold bullion coin sells at a small premium over the price of its gold content so it makes a much wiser investment. Since December 31, 1974, U.S. investors have had the ability to own such coins. Between 1933 and that date, Americans were only permitted to own numismatic coins. This presented a frustrating situation for investors who were not eager to pay the markups on numismatic gold coins.
The South African Krugerrand is largely responsible for stimulating the market in gold bullion coins. The Austrian 100 Corona and Mexican 50 Peso restrikes were also popular after 1974. Today, the American Gold Eagle is the best selling gold bullion coin for investment purposes. The Krugerrand is no longer imported for investment purposes but it does still trade daily on the U.S. market. Krugerrands have smaller premiums over gold prices than do the American Gold Eagles but they are still not as popular.
Canadian Maple Leafs were once almost as popular as the Gold Eagles. For investment purposes, they waned in popularity because they can easily be damaged or scratched. Other gold coins that make good investments are the coins that traded successfully early on, the Austrian 100 Coronas and Mexican 50 Pesos. These coins contain less than one ounce of gold, making them more suitable for investors with small budgets.
Lesser-known gold coins that make good investments are the Austrian Philharmonics, Hungarian 100 Koronas, and Australian Kangaroo/Nuggets. The Hungarian Korona is the sister coin to the Austrian 100 Corona. Investors should explore these coins and avoid purchasing numismatic gold coins and old European gold coins that are not stamped with their gold content.
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