Investing in Gold Coins: Definitive Guide for New Investors

gold coin investments

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One of your main goals should be diversification when you invest in gold coins. Gold has historically been a safe-haven asset and has been used as a hedge against inflation.

But that doesn’t mean it’s the only investment for your portfolio! So let’s take a look at everything there is to know about buying physical gold coins before deciding whether this form of investing is right for you.


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Investing in Gold for Beginners

For centuries, gold has been a store of value, a hedge against inflation, and even an insurance policy against financial crises. 

For many investors who have been around since before the 21st century started, there’s no better place to put your money when you’re looking for stability than gold.

But what about new investors? Should they be investing in coins as well? The answer is yes!

While it’s true that investing in the gold industry isn’t for everyone—if you’re concerned about losing paper money on your investments or can’t afford to lose any at all—what makes investing in these coins so appealing are their long-term benefits.

When we look at gold’s performance for only the two years between 2021 and 2022, its price has risen faster than stocks as geopolitical uncertainty increases worldwide. 

If you invest wisely with an eye toward long-term growth possibilities (and don’t get spooked out by short bursts of volatility), there’s no reason why this trend won’t continue!

Inflation means that, over time, the value of your money is reduced as more and more currency enters circulation. 

Inflation is a serious problem for countries with no independent central bank; their currencies can become worthless if too much money is printed without checks or balances on how it’s distributed. 

When you invest in gold, you protect yourself from inflation’s effects.

Pros of Investing in Gold Coins

Investing in coins has several benefits for the new investor.

  • You do not need to disclose your ownership of coins in your portfolio.
  • Gold can be used to hedge against inflation and thus protect your portfolio from a volatile economy.
  • In the event of a massive currency devaluation, you can use gold as an alternative means of buying and selling.
  • When the value of other investments decreases, gold spot prices tend to rise. This is because investors turn to gold as a haven for their money.
  • You don’t have to pay capital gains tax on the gold you buy, which means your investment grows without taxing.

Cons of Investing in Gold Coins

While a gold coin can be an appealing purchase, there are also downsides.

  • Unlike investing in a company, where you receive dividends on your investment as a shareholder, there is no interest or return when you buy gold.
  • Unlike the stock market or real estate, you may have to wait several years before the spot price of gold goes up enough to make selling it worthwhile.
  • Physical gold can be stolen more easily than stocks or mutual funds, which are protected electronically.
  • You may have to pay a bank or storage company for the safekeeping of your coins.
  • The US Government only guarantees the purity, gold content, and weight of gold bullion coins, not commemorative coins.

3 Best Gold Coins to Invest In

There are many coins to choose from, but the three best coins to invest in are:

  • American Gold Eagle
  • Canadian Maple Leaf Gold Coin
  • Krugerrand Gold Coin

These three coins are widely available from dealers and online retailers. Each has the characteristics that make it more suitable for some investors than others.

Let’s look at each of these coins and consider what makes them the most valuable gold coins to investors.

American Gold Eagle Coin

The American Eagle coin is a gold bullion coin made by the United States government in 1986. The American Eagle is an investment gold coin not meant to be used in circulation.

If you have one of the $50 (1 oz) coins, it is worth more than $1,000. The American Eagle coin was first made from 1792 to 1933 and then again from 1986 to the present day.

The coins comprise 89% to 91% gold and precious metals like copper and silver. The value of these coins increases over a short period because they’re rarer than other coins (like the one-dollar or half-dollar coin).

You may need to wait decades for these legal tender coins to increase in value! You can use American Gold Eagle coins as part of your retirement plan through an IRA.

If you are looking at purchasing an American Gold Eagle Coin, gold coin sizes come into play. These American coins come in troy ounces ranging from 0.11 to 1.09.

Canadian Maple Leaf Gold Coin

Many believe the best 1 oz gold coin is the Canadian Maple Leaf Gold Coin. The Canadian gold coin is virtually the purest gold coin available.

The Canadian government started making coins in 1979. This coin features 99.99% pure gold from gold mines in Canada—purer than virtually any other coin available.

They’re a great investment for anyone looking to diversify their investment portfolio. The Canadian economy is stable, both politically and economically, which makes Maple Leaf a stable investment as well.

Protect yourself against inflation or market downturns by purchasing this coin.

Krugerrand Gold Coin

The Krugerrand is a gold coin produced in 1967 by a gold mining company in South Africa. The Rand Refinery started making these coins in partnership with the South African Mint.

The Krugerrand is popular with US traders because it has a long history of being traded internationally and is easy to recognize as a 1 oz gold coin.

The value of a Krugerrand depends on gold market forces—it is worth exactly as much as its weight in gold. 

It’s one of the purest coins available: each coin contains 33.93 grams of 22-karat gold. 

The Canadian Maple Leaf and American Gold Eagle are less popular because they contain different proportions of alloy metals like copper or silver, which makes them less pure than the Krugerrand.

Gold Investment Returns

Historically, stocks and bonds have outperformed gold by a factor of three-to-one. And while gold has been known to go up during economic uncertainty, it has also been known to fall when markets are stable or growing.

During the beginning of the pandemic, for example, gold prices rose dramatically—reaching record highs of over $2000 per troy ounce at one point.

How to Buy Gold Coins

Buying coins can be a great way to diversify your portfolio, but it’s important to know what you’re doing before entering the marketplace.

  1. First, you must find a reputable dealer like Vaulted, OneGold, or Goldco. Dealers add a premium to the price of your coin as their cut, so it’s important to compare the market price of bullion gold coins before making your purchase. Find an authorized gold dealer that has been in business for at least five years and is registered by the United States Mint to sell coins.
  2. To find the best deal on coins, look online or contact a dealer directly. Be aware that prices can change quickly, so if you see something that’s right for you—buy it! Bidding wars on eBay can make coins more expensive than their market price, so do your research before buying.
  3. Purchase online or over the phone using a debit or credit card. You shouldn’t pay anything extra when signing up for an account with any reputable gold coin dealer!
  4. Once you’ve made your purchase, look for confirmation emails from the dealer and shipping updates.
  5. If you don’t want to deal with the physical handling of your gold, you can invest in a gold exchange-traded fund (ETF). Gold ETFs are a good way to increase your exposure to gold without having to worry about storing the gold.

Are Gold Coins a Good Investment?

Investing in gold coins or gold mutual funds can be a good way to grow your money over time, but it’s important to understand that risk is involved with any investment.

No one knows what the future will bring, so it’s wise to have a diverse portfolio of assets. Gold coins can help you diversify by spreading out risk across multiple investments.


Do you still have questions about investing in gold coins? Here are some answers to the most frequently asked questions.

Coins are easier to trade and sell, so they’re often a better investment for most private investors. They’re universally recognized, which means they can be traded anywhere in the world, unlike bars. 

Coins also have legal tender value in many countries, which means that if you’re traveling with them and need cash, you can easily exchange them for currency at any bank.

The Canadian Maple Leaf Gold coin is the best physical gold coin for investment. It is pure and stable, but unlike other coins, it does not use a mixture of metals.

This makes it more valuable over some time.

If you buy coins, it’s smart to always be aware of the current price so that when it goes up, you can sell your coins for more than what they cost.

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