Buying Gold Coins: The Most Popular Bullion Coins

The Chinese gold Panda is one of the most popular gold coins the world over. There are a total of 300,000 Pandas slated for stamping in 2011. They are minted in coins of 1, 1/2, 1/4, 1/10 and 1.20 troy oz. of 24 karat fine gold. Buying gold coins has now become a hugely popular way of investment for the masses in China. A spokesperson of the World Gold Council recently said, “There is a tidal wave of gold demand coming.” Gold bullion coins have been called a hedge against inflation, as these are valued for their mass and purity and are known to be highly liquid.

Buying Gold Coins: Popular Bullion Coins

Here is a description of some of the most popular bullion coins:

American Eagle Gold bullion coins: The US mint is an official government mint and therefore its products do well even in the secondary market. The American Eagle family has coins with 1/10, 1/4, 1/2, and 1 ounce of pure gold. Launched in 1986, the front of the coin is a ‘striding liberty’ design and the back is an eagle hovering over its nest. Also on the back is the coins face value and pure gold content. Bullion coins are valued only by their gold content, the face value is to indicate that it is a legal tender of the United States. The US Treasury Department guarantees its weight and pure gold content, making it highly liquid and making it the most widely traded gold bullion coin in the world.

Canadian Maple Leaf: Subject to the Canadian Currency Act and the Royal Canadian Mint Act, it is the official bullion coin of Canada. Available in denominations of 1/20, 1/10, ¼, ½, and 1 oz., it contains 24 karat pure gold. The picture of the queen adorns one side of the coin, while the other shows a maple leaf. These coins can be bought at a lower premium than the American Eagles, simply because the Royal Canadian Mint wants to increase sales. Introduced in 1979, the 1 ounce coin is the most popular with physical gold investors. The coin is also popular with jewelers as a source of pure gold for use in creating various jewelry items.

South African Krugerrand: First introduced in 1967, the coin was hugely popular and accounted for 90% of the gold coin market by 1980. It was the first modern, low premium gold bullion coin. Produced in the South African Mint, it is offered in 1/10, ¼, ½ and 1 oz. It depicts a springbok antelope on one side and Prseident Paul Kruger on the other. The coin is made of an alloy of pure gold (91.67%) and copper (8.33%) and therefore, it is less fragile and more durable.

Chinese Gold Pandas: The obverse has a depiction of the temple of heaven and the reverse has portraits of pandas that differ from year to year. Introduced in 1982, the official mint of the People’s Republic of China still mints these coins. They are made available to dealers at a low premium over gold content, even though this is higher for pandas than for most other bullion coins.

From 540 BC, gold coins have been used by at first for monetary exchanges and now in the more evolved, abstract society as investment opportunities. Although bullion coins are purely for asset protection purposes, people continue to savor their fascination for the metal by collecting old coins with numismatic values. The value of those coins is decided keeping in mind not only gold content but also rarity and quality factors. Thus, before one begins recruiting coins to build their portfolio, one must familiarize themselves with the intents of the coins and their own goals.