A Guide To Buying Gold Coins

If you’re interested in buying gold coins there are many options to choose from. You first need to understand the differences between gold coins which can be bullion or numismatic.  Each have different benefits and it’s important to know the differences so you can make the best decision according to your needs in order to reach your goals.  Gold can work in your favor if chosen correctly.


Bullion gold coins are the pure form of a precious metal which are valued by the Gold content.  The bullion market has a spot price that you can find everyday either by using the web or the newspaper.  The physical gold market is different.  It is the spot price as well but then you have to include a premium, which can range from 2% to 10% above the spot price due to mining, minting, marketing and also for dealers.  Supply and demand also has an impact on pricing as well.
Sometimes these coins are used as a hedge to stand up against inflation.  The reason for this is cause gold is sometimes seen as an alternative currency, which is mainly used to shift from fiat currencies.  Often on CNBC you will find Jim Rickards talking about gold not making profits that it is just the opposite of the dollar meaning if the dollar is down in value gold is up in value.

The world has many types of bullion coins, which include the American Eagles and Buffalos, the Canadian Maple Leaves and the South African Kruggerands.  There are different sizes but the common sizes are 1/10 oz, ¼ oz, ½ oz and 1 oz.


Numismatic coins are very different from bullion coins.  They are generally minted before 1933 and are considered to be rare coins.  Most people believe this is the best way to own gold coins due to their three main benefits, which include privacy, protection from confiscation and growth.  First benefit, they are non-reportable and whether you are buying or selling it is between you and the dealer only.  Second, even though they are both gold, only gold bullion has been confiscated in the past, numismatic has never been touched and finally in the last 40 years numismatic coins have outperformed bullion and if long-term growth is important to you numismatic is the right choice.  They do however come at a higher premium than bullion but remember they hold a longer-term than bullion.

Whichever coins you decide to choose know that both are a great choice and it all depends on which will work best to help you reach your goals and needs.  Understanding the risks and benefits will help you in your purchase.  At ITM Trading they specialize in all types of precious metals so please don’t hesitate to call.