Gold Coins

by goldbullion on 03/03/2012 - 01:20 pm |

Tags: Gold, Metals Investing

Gold Coins

Gold coins are coins that are made mostly or completely of gold. Gold has been a primary component of coins since the earliest era of coin-making. Early on, coins were minted of gold largely because of gold's intrinsic value. In modern times, gold coins are sought by collectors or as a source of bullion itself. Gold coins remain common currency in some countries, but for the most part gold coins are sought for collection and investment.
 
The collector value of coins depends on a number of factors, including rarity, age, condition, and the number available. Popular coins today include the Aureus, Solidus and Spur Ryal. Bullion coins, on the other hand, are held not as collectables, but purely as a store of value and an investment. Bullion coins are normally sold by weight, measuring in fractions of the troy ounce. The price of bullion coins carries a premium over the market price of gold, due to the cost of manufacture, storage, and distribution. Bullion coins are also made from precious metals other than gold, including silver, platinum, and palladium. Bullion coins are minted by the national mints of various countries, including the United States, Canada, France, Israel, China, and the United Kingdom. Bullion coins also originate in countries that are former territories of major countries, including Malaysia and Kazakhstan.
 
Gold coins have become a prized investment method over the last several years. Gold bars are also purchased and held for investment, and in fact carry a smaller premium over market price than coins, but the purity of coins is more readily assured than that of bars, and coins are easier to keep and store. The appeal of both is the surety against financial calamity provided by gold. In times of heightened financial risk, gold becomes a preferred store of value and means of investment. Gold has proven itself a successful investment over recent years, with the price of gold climbing from around $600 per ounce in 2008 to its current price of over $1,700.

 



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