This leaves me pondering the paradox as I watch a Bullion new owner sweetly arrange for safe transport for his precious little coin as I exit the auction room. Physical relics of economic history are growing in value and interest as they become supplanted more and more rapidly by digital currencies and cashless transactions.
Maybe that is why these coins go at such great prices. For even more, as extraordinary specimens that perhaps celebrate major moments in history, miraculously survived melting orders, or are captivating mistakes that escaped scrutiny, they now add to the intrigue of how much farther our lives are moving from cash.
For those capable of competing in the highest realms of coin collecting, they are worth much more than metal weight or monetary worth. They are pieces of history that fit at your fingertips: portable, yet enduring witnesses to the forces-economic, political, and social-that shape our world. In this case, millions seem a small price to pay for such concentrated historical importance and rarity.
As collector Peter Davidson told me in admiring his 1794 dollar: “Every time I hold this coin, I connect with the America of Washington and Jefferson in a way no history book can ever provide. That feeling-a direct connection to history-is what I am really collecting.”
Before you consider adding a coin to your portfolio, however, you may want to know a little about it. Let’s examine nine of the world’s most popular gold bullion coins.
The South African Krugerrand
Originally minted in 1967 to market South Africa’s gold and provide everyday investors access to the gold bullion market, the South African Krugerrand is the oldest among modern gold bullion coins. The Krug errand quickly rose to favor among investors, comprising most international gold coin markets by 1980. Subsequent successes in many nations creating their own gold bullion coins identified the uncontested popularity of the Krug errand, which underwent sanctions in the mid-1980s due to apartheid.
The coin is named after South African president Paul Kruger and the country’s currency, the rand. A portrait of Kruger decorates the front with a springbok on the reverse. The coin itself is made of 91.67 percent gold, has no face value, and is legal tender.
Canadian Maple Leaf
Maple Leaf coins are assayed at 99.99 percent purity. The coin is appreciated for its purity and quality and has gained widespread acceptance and popularity among investors. The coin was minted by the Royal Canadian Mint starting in 1979. The current design has a pure maple leaf on the front and a portrait of King Charles III on the reverse. The Maple Leaf is now issued in various sizes and designs.
Mexican Gold Libertad
Introduced to commemorate independence, the Mexican Gold Libertad became an official coin minted by the Mexican Mint in 1981. The obverse features an artistic rendering of the statue of Winged Victory, flanked by the volcanic mountains, Popocatepetl and Iztaccíhuatl, while the reverse showcases the Mexican Coat of Arms. According to the other national bullion coins, the Gold Libertad is also minted in 99.9 percent pure gold.
Chinese Gold Panda
Founded in 1982 under the auspices of the Chinese Mint, the Chinese Gold Panda coin, also characterized by the .999 fineness, has remained a favorite coin choice for investors looking to add precious metals into their investment mix. The panda design on the obverse changes annually except for 2001 and 2002.
American Gold Eagle
One of the world’s largest investment coins, the American Gold Eagle is 91.67 percent gold weight and has a legendary design that depicts Lady Liberty holding an olive branch and torch, inspired from the sculptor Augustus Saint-Gaudens.
The American Gold Eagle is actually a coin made by the U.S. Mint in the year 1986, which initially included gold and silver bullion coins. These days, you can buy platinum and palladium coins too.
Australian Gold Kangaroo
Commonly called the Australian Gold Nugget, the Australian Gold Kangaroo is a coin that was created by the Commonwealth of Australia in the mid-1980s. The present coin features a kangaroo on one side and King Charles III on the opposite side. The coin is issued by the Perth Mint, is of purity 99.99 percent and has legal tender on the front face, which varies according to the size of the coin.
British Gold Britannica
The British Gold Britannica is one of the world’s most widely recognized gold bullion coins. It now features a portrait of King Charles III. On the reverse, there is representation of Brittanie, a woman who symbolizes Britain posed with a shield and trident. The coin has been in circulation since 1987 through the Royal Mint and is 99.9 % pure gold.
Austrian Gold Philharmonic
The Austrian Gold Philharmonic is a very unique bullion coin that pays homage to Austria’s rich musical heritage and depicts the Great Organ of the Musikverein. The most unique fact about this coin is that it is the only bullion coin that is denominated in euros. The Federal Reserve of Austria minted the coin for the first time in 1989 and is 99.99 percent gold.
American Gold Buffalo
This popular coin from the U.S. Mint was introduced back in 2006. It is the first-ever coin created by the U.S. Mint which has a 99.99 percent gold purity. This coin is inspired from the buffalo nickel, featuring its possible buffalo and James Earle Fraser’s portrait of a Native American man.
These $50 coins are considered legal tender, which means they can be used as money, although the actual value is much greater than $50. Like other U.S. Mint coins, their gold content is backed by the U.S. government.
Pros and cons of investing in gold bullion coins
As with any investment, gold bullion coins have their advantages and disadvantages.
Pros
- Gold bullion coins are highly liquid.
- Buying these coins is easy.
- Gold is valuable all over the world.
- Gold is inflation-proof and retains its purchasing power in the long run.
Cons
- Setting an adequate price and selling a bullion coin for a full market value is not easy, especially where a fast transaction is involved.
- Generally, you may not have your gold coins yielding you a return on investment like the stock market can. The returns accrue-provided that the price of gold goes up.
- Storage costs, like renting a safe, and another additional insurance on your gold coins can eat away returns.
Can I consider gold bullion coins as a component of my investment portfolio?
Yes, gold bullion coins can be a hedge against inflation, thereby diversifying your investment portfolio.