Precious Metals: Different Types of Gold Coins
Different Types of Gold Coins
For many millennia, gold had been the standard currency in most of the regions of the world. Now gold coins are still used but not in financial transactions but as bullion coins for investors and as collector coins for collectors. Many of these gold coins have actual metal values that are much higher than the nominal value written on them. Here, we concentrate on bullion coins only as they are for investment purposes and not the numismatic gold coins which are for collectors. The numismatic ones have their values set at very high premium values above those of the metal content while the bullion coins have their values set at a small premium value above their actual metal content value (Information on Gold Investments, 2016).
Gold coin characteristics
There are certain criteria or characteristics which gold bullion coins need to possess if they are to be considered for investment. Some investors would certainly prefer high purity 24 k coins but most others go for 22k coins. While these have other metals in them like copper and silver, the copper ensures toughness and the coin are able to bear our better in terms of handling and being passed on from one person to another. A second factor to look for is scarcity or abundance. The investment related coins need to be abundant as scarcity would turn them into numismatic coins (7 Best Gold Coins To Buy For Investing, 2016).
Popular Gold coins
The most popular gold coin for investment is the Turkish Republic coin. Turkey has produced many gold coins. The ‘Ziynet’ or decorative coin is very popular as Turkish people use it to gift friends and relatives on various occasions. The other popular coin is the Turkish ‘Meskuk’ coin. Turkey also boasts a large Gold reserve to hedge against inflation. The Turkish Mint produces nearly 1.5 tons of gold coins every week (7 Best Gold Coins To Buy For Investing, 2016).
Many buyers also go for other coins like the South African Krugerrands or the British Britannias. Although currently, only 6% of gold comes from South Africa but in the 1970s, it was around 62%. For historical reasons, the South African gold coins are hot selling coins as well and 20% of the coins produced since the 70s are indeed Krugerrands. It is named after President Paul Kruger who led South Africa from 1883 to 1902 (7 Best Gold Coins To Buy For Investing, 2016).
Gold Britannias are produced by the Royal British Mint since 1987. They have become very popular in the gold bullion market (British Royal Mint (Gold Britannias), 2016).
Currently, the American Eagle Gold coins are selling very well as well. They have become very popular followed by the south African Krugerrands and the Austrian Philharmonics and Hungarian 100 Koronas. CMI Gold investment experts, old European gold coins do not, in general, have their gold content labeled on them (Information on Gold Investments, 2016).
The Maple Leaf Gold Coin from Canada, the Panda Gold Coin from the People’s Republic of China, the Kangaroo Gold Coin from Australia and the Philharmonic Gold Coin from Austria are very popular with gold bullion investors.