precious bullion coins

Precious Bullion Coins

Among the various forms of investment available, the purchase of valuable coins is one of the most loved by international collectors. Behind the passion for precious bullion coins, there is not only the goal of making a profit but also more. For one thing, the love for an object that has always tickled the wildest fantasies about treasure chests and adventures. Plus, the search for the rarest and most precious piece can get you addicted to collecting.

If you do not know the tricks of the trade, however, the purchase of investment coins can leave you unsatisfied. Thus, passion or not, it is better to know the lingo well and understand how to act to avoid paying more than necessary or even suffer varying scams and frauds.

In light of the present Coronavirus issue, this argument is even more valid than ever. COVID-19 is pushing many savers towards the purchase of safe-haven assets, such as precious bullion and collector coins. Especially the most precious and rare ones attracted an insane amount of attention.

What Are The Precious Bullion Coins?

There are many different opportunities on the market to invest in coins, but the approach can greatly vary. First of all, it is important to lay down a fundamental difference between the two categories of the product in question. Otherwise, the explanation is unclear. Here are the two main categories:

  • Bullion coins
  • Numismatic collector coins

With the name precious bullion coins, we mean all coins made of precious metals. Undoubtedly, the undisputed king is gold, but we also find silver and other metals such as platinum and palladium.

In this case, the value of the coin depends, above all, on the raw material. Though, it is not a fixed rule. Many other factors can influence the final price. For example, the rarity and age of the piece can dramatically change its sales figure. Of course, the precious bullion coins are also eye candy. So, they lure many passionate collectors and investors alike. In terms of marketing, this aspect is not a secondary factor at all.

Frequently, a beautiful coin is worth more than one with the same quantity of gold, silver, or platinum but less pleasing to the eye. With the advent of the Coronavirus, rare and precious metals, such as gold, always the best safe-haven assets, are destined for a gradual but continuous increase in the price. Therefore, precious bullion coins are also considered excellent anti-COVID-19 assets.

Numismatic collector coins attract a particular kind of buyer. Generally, the term numismatic refers to coins that have historical value. Namely, they are ancient or particularly rare ones. In a way, they may remind you of stamp collecting.

In this case, the rarity, age, links to a particular historical event, the character imprinted by the minting process, and other details determine the monetary value of a coin.

The Krugerrand: the South African bullion coin

krugerrand

The best known South African gold coin is the Krugerrand. Since 1967, the government initially coined it without the idea of using it as a currency. Indeed, they wanted only to support the South African gold market.

The name of the South African precious bullion coin originated from the engraving of the left-facing portrait of Paul Kruger. He was a politician of the late nineteenth century and president of the Republic of Transvaal. As can be seen, his face is on the obverse of the coin. On the Krugerrand’s, we find a springbok. To specify, the springbok is the national symbol of South Africa.

The Krugerrand has an internationally known weight of 33.93 grams and a purity of 22 karats. Its weight of pure gold contained in each coin is roughly more than one ounce: 31,10 grams. Must be remembered, one ounce weighs 28 grams. The rest of the coin’s mass contains 2,83 grams of copper. Surprisingly, this alloy gives the Krugerrand an orange appearance, unlike other gold coins minted in silver alloy.

The Krugerrand was the first coin to contain an ounce of fine gold. Thus, it became a legal instrument for proven possession of gold. In the USA, the possession of gold bullions was illegal. At that time, the Krugerrand became a method for US citizens to invest in physical gold.

After the sanctions against South Africa for apartheid, several western states banned the import of gold Krugerrand in the seventies and eighties. As a result, the production dropped significantly to the lowest lows of the 1990s. In the end, they began to rise again from 2000 onwards without ever returning to previous levels.

Australian Gold Nugget

australian gold nugget

The Australian Gold NuggetL. Series (1) & L. Series (2), is one of the bullion coins that arouses much interest from experts. Ordinarily, it is known as Nugget or Golden Kangaroo. To emphasize, one can cost $10,000 or more.

The first minting dates back to 1986 in solid gold, without the addition of other alloys. Several variations were created such as:

  • one ounce
  • two ounces
  • ten ounces
  • half-quarters, a quarter, a tenth and a twentieth of an ounce.

Vienna Philharmonic

vienna philharmonic

The Vienna Philharmonic gold coin (Wiener Philharmoniker) is by far the most beautiful Austrian investment gold coin. Surely, if you like classical music, you know the most famous and renowned orchestras in the world. Indeed, the name refers to the Vienna Philharmonic orchestra. It is a pure gold coin:24 karats. Since 1989, its design remained unchanged.

Canadian Gold Maple Leaf

canadian gold maple leaf

The Maple Leaf weights 1 ounce (31.11 grams). Annually, the Canadian mint issues it. To be precise, its face value is five Canadian dollars. Also, a guarantee certificate comes with it.

Chinese Gold Panda

chinese gold panda

The Chinese Gold Panda is mind-boggling. In addition, the quotas for Chinese gold issues, dated 2012, are truly impressive. The Panda series is one of the most loved and collected precious bullion coins.

Mexican Libertads

mexican libertads

The Mexican Libertads take us back in time. The coin’s origins date back to 1981, enriching the investment gold market where only the Krugerrand (since 1960) and the Maple Leaf (since 1979) have been present. Initially, this coin was called Onza, but a few years later its name was changed to Libertad. Alternatively, you can search for the gold coins of 50 Pesos of Mexico (Centenario). The Mexican Mint issued them from 1921 to 1947. To this date, they are more valuable than Libertads.

Vreneli

vreneli

Vreneli is the diminutive in Swiss-German of Verena, which is the woman depicted on the obverse. Also, this coin is known as Marengo, which is its informal name. Usually, under one of the images, you find the engraver’s name.

Gold Sovereign

gold sovereign

Most likely, the Gold Sovereign is the most widespread bullion coin. Like the Britannia, it is famous in the UK, where it came from.

Golden Britain

golden britain

In the United Kingdom, Golden Britain is exempt from the Capital Gain Tax. That is, there is no taxation on the proceeds of the sale.

American Buffalo

american buffalo

Finally, the American BuffaloEagle & Double Eagle are also great options to consider. American Buffalo is also known as Bison. It is by far the first coin that the United States government has coined in 24 karats. Many consider it to be one of the most beautiful coins in circulation.

American Eagle

american eagle

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