Our picks of the best gold coins to buy, five reasons to buy gold coins, the history of gold and where to find gold coin dealers.
Wondering if you should buy gold coins? Find out the answers to your gold questions, such as:
- Why you should buy gold coins
- History of gold
- Best gold coins to buy
- Best gold bars to buy
- Gold coin dealers and coin shops
Why Buy Gold Coins?
First, buying gold coins means you are buying something that you can hold in your hand. This may not seem important to you now, but it may be critical in the future. Cash can be destroyed and loses value. In addition stocks go up and down in price. In addition, Banks and businesses fail every day. Living things, such as livestock and farm crops die. However, threats such as these do not impact gold.
Five Reasons to Buy Gold Coins:
- Store of value. National currencies (even the U.S. Dollar) come and go. But Gold has been around for thousands of years as real money.
- Liquid asset. Large cities throughout the world trade gold and silver on a daily basis.
- Tangible asset. You can hold gold coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
- It is a hedge against inflation. Silver tends to thrive during a crisis. Investors tend to jump into silver when stocks go lower.
- Privacy. No other asset offers privacy like a gold coin. A transaction in gold between you and another person is truly a private affair.
Gold in Your Portfolio
It is common to hold anywhere from 5-10% of your investment portfolio in gold. In fact, some very larger international portfolios hold approximately 30% of their assets in gold.
History of Gold
Circa around 4,000-6,000 years ago, gold was first used as a commodity and as a money . Then, approximately 4,500 years ago, the people of Mesopotamia made jewelry from gold. Some historians believe that the use of gold is much older. Cultures such as the Egyptians used gold for purposes such as to decorate walls, burial sites and masks of cultures such as the Egyptians, the Greeks and the Romans.
Gold for Trading and Exchange
Circa 1500 B.C., gold was the official currency of exchange for mearchants and traders in Egypt. Shortly thereafter, gold began to take hold as the superior trading currency throughout the world. Mining for gold becomes a major industry world-wide. Europe and Asia begin using gold coins for payment.
Gold Standard Dollars
Fast forward to the birth of the United States. First, in 1792, the United States passed the Coinage Act.The Coinage Act requires that silver and gold are the new standard for currency valuation. The Act defines the U.S. Dollar as equivalent to 24.75 grams of gold and 371.25 grams of silver. Next, the paper currency printed in the United States was officially backed and redeemable in silver and gold.
Once again, fast forward again, approximately 180 years. First, in 1968, the U.S. Government removed gold from backing the Dollar. Then in 1971, the price of the U.S. Dollar was devalued. Then, US Currency was no longer convertible to gold. As a result, gold does not back the American Dollar any longer.
The Beauty and Utility of Gold
Humans have long believed that gold jewelry and coins were things of beauty. For instance, women and men have donned gold jewelry for as long as we have kept track of history. Moreover, from a physical perspective, gold is malleable and easily altered to make jewelry, coins or even thin gold sheets. Scientifically, gold is non-reactive and non-corrosive, both of which are highly desirable characteristics. Gold is even safe to use in the human body. For example, dentists have used gold for years to repair teeth. In conclusion, gold has many uses.
Best Gold Coins to Buy
Now that you understand the history and significance of gold and why buying real gold coins is important, let’s explore the best gold coins to buy.
There are four important one-ounce gold coins that are important to buy. The four recommended gold coins are:
- American Eagles
- South African Krugerrands
- Canadian Maples
- Austrian Philharmonic
The aforementioned coins are the finest gold coins available. The respected governments of each country oversee the minting and distribution of these fine gold coins. All four of these coins are well-known and recognized world-wide. As a result, gold coin buyers and sellers hold these four coins in high regard.
Best Gold Bars to Buy
If you have more money to buy gold and don’t want to have stacks of coins lying around, then buying gold bullion or gold bars is an option. Gold bars have a few options that make them desirable when compared to gold coins. Gold bars take up less storage space than a comparable Dollar value of coins. In addition, bullion bars have lower premiums compared to gold coins. And gold bars come in varying sizes from one gram up to 400 ounces.
Smaller to medium size bars are recommended for several reasons. Large gold bars are not very divisible. For example, how do you pay for dinner with a 400-ounce gold bar (currently valued around $800,000)? In addition, larger gold bars require assay when exchanging and there is also a higher rate of counterfeiting with large bullion bars.
Gold Coin Dealers and Coin Shops
When buying and selling gold coins, you have several options. The first option is to search for reputable coin dealers near where you live. To start, ask friends or look online for reviews of the local shops that buy and sell gold coins. Next, visit several coin dealers or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about gold and silver coins. Finally, ask questions, like how they determine gold spot price or how their fees are determined. Get comfortable with whom you are dealing and get to know them.
Want to learn more about how to invest? Check out The Best Investing Books of All Time.
It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.
In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.