Thursday, December 15, 2005

Which gold coins are the best?

There are many different types of gold coins. Which are the best? Some of the more famous gold coins include:

American Eagles
Australian and UK Sovereigns
South African Krugerrands
Canadian Maple Leafs
Chinese Pandas

The criteria one looks for in a gold coin are such items as:
  • Type of coin. Eagle, Sovereign etc.
  • Size of coin. These can vary also. Sometimes measured in value and sometimes in weight.
  • Face Value. 1 rand or 10 rands (South African) for example.
  • Weight. Usually measured in troy ounces or part of an ounce but grams have also become a popular weight measurement recently.
  • Fineness. (999% fine) Amount of gold compared to other metals, such as silver. Gold bars are usually measured as 999 parts per 1000. Most gold coins are usually 917 parts per 1000. Other metal is added to make them easier to mint.
  • Gold Content in Grams. The weight of the gold contained within a gold coin measured in grams.
  • Gold Content in troy Ounces. The weight of the gold contained within a gold coin measured in ounces.
  • Price. How much you would be expected to pay for the gold coin advertised. This would include any margin added by the seller and any tax that might be applicable. This is often referred to as 'price above spot'.
When buying gold coins the information should be clearly displayed along with, ideally, a picture of the coin. Sometimes included is the date it was minted and the condition, if it is a mint coin (new, never been used, Mint Issue).

In fact, if the quality of the coins are up to par then it is really a matter of personal taste what coins one collects. American Eagles appeal to some people, Sovereigns to others. One simply picks those coins that appeals to one’s taste and collects those.

So the criteria for which coins are the best is the quality of the coins on offer including the value of gold contained, its condition and weight compared to the price.

Once you can establish that to your satisfaction, you are ready to collect the best gold coins which of course are the gold coins of your choice and have fun doing so!

1 comment:

JamBa said...

Another consideration prior to selecting a gold coin is the markup over market price. Typically, a Canadian Maple Leaf costs less than an American Eagle gold coin, yet what it boils down to is that you still receive the same amount of gold weight.