A very common question is always what form of gold should I buy. Before you can answer this question you must understand the different types of gold you can own (click on bullion in the next sentence and rare gold coins in the last paragraph to read about them first). You can buy gold bullion or you can buy rare gold coins. If you are convinced that bullion is the way to go then, in my opinion, you should buy the cheapest possible option available. That can change depending on supply and demand.

Bullion coins come in many possible options. They vary in country of origin and in size. Depending on market conditions one particular coin can be more readily available than another. For example, there have been times recently that American Eagles were very sought after and commanded a higher price than the Canadian Maple Leaf. Both represent one full ounce of gold, but because of supply and demand issues one cost more than the other.

Coins typically cost more to produce than bars. Therefore a bar of gold is typically cheaper to purchase than a coin of the same number of ounces. In addition, if you purchase a large number of ounces at a time (typically 50 or more) you get a price break. This works for coins or bars. If you are looking for the absolute cheapest way to own gold, then bars in larger ounce sizes are for you. If you are looking for something to barter with in the event of a dollar collapse, then coins of the smallest sizes are for you. If you are looking for beauty in addition to owning gold, then proof one ounce coins are for you.

This brings us to rare gold coins. Many rare gold coin owners acquire U.S. rare gold coins minted prior to 1933. They are minted in identical ounce sizes as American Eagles; however these coins offer many advantages above and beyond their bullion content. Advantages like privacy, exclusion from previous gold confiscations and performance over bullion gold make this form of gold the best way to own gold in many peoples’ eyes. If you are looking for beauty, privacy, historical significance and long-term performance, then this type of gold is for you. They are more expensive than gold bullion due to their performance over history, and depending on how rare a particular coin is, it can be worth millions. When buying this type of gold coin, you are buying more than just the gold content.