Do you know how to buy gold coins to hedge against inflation? In the last five years, gold has gone up by 67%.
There are a lot of different coins you can invest in and many different precious metal dealers you can buy from.
Learn more about how to buy gold coins to protect your wealth.
Which gold coins should I buy?
There are tons of gold coins out there but not all of them are good investments.
Here are some of the best gold coins to buy if you’re just getting started investing in gold.
- American Gold Eagle: One of the most widely recognized and trusted gold coins, the American Gold Eagle coin is backed by the U.S. government for weight and purity. It has good liquidity and is eligible for inclusion in a gold IRA, making it a good coin for new investors.
- Canadian Gold Maple Leaf: One of the purest gold coins available, with a 99.99% gold content. The Canadian Gold Maple Leaf coin is highly sought after by investors worldwide making it a reliable investment for those looking to store wealth in physical gold.
- South African Krugerrand: The first gold bullion coin made available for investors, the South African Krugerrand coin has a good reputation among investors. It has low premiums and high liquidity, making it a good investment for new investors who want to minimize costs.
- Austrian Gold Philharmonic: A 99.99% pure gold coin celebrated for its elegant design and strong liquidity in European markets. The Austrian Gold Philharmonic coin is legal tender in Austria making it a reliable investment for investors who want a high-purity gold asset with international appeal.
- British Gold Britannia: This is a highly secure and globally recognized gold coin, with good advanced anti-counterfeiting measures. If you live in the UK, the British Gold Britannia coin comes with some tax advantages that can boost the value of your portfolio.
- Chinese Gold Panda: With annual design changes, the Chinese Gold Panda coin is not only a good investment but highly collectable.
These coins are globally recognized, regarded for their high purity.
They can be collected to boost your long-term savings or liquidated for cash, depending on your preferences and needs.
How to Buy Gold Coins from a Bank
Buying gold isn’t like shopping for groceries. Some banks may have gold on hand for you to buy, but don’t expect to walk into a branch and walk out with gold in hand.
Here are the steps you should follow to buy gold coins from a bank:
- Call to see if the bank you’re planning on going to has gold
- If they do, ask what coins they have, how much they’re selling them for, and if you need storage, what the cost of getting a safety deposit box is
- When you’re ready to make your purchase, go to the bank but make sure to bring a government-issued ID with you
- Talk to a bank representative to make sure the gold is authentic and of the purity value you want before concluding your purchase
Commercial banks and large international banks are more likely to have gold in stock than smaller regional banks.
These are some banks that you can start with to see what they have available:
- HSBC
- Wells Fargo
- U.S. Bank
- Citibank
- Bank of America
- JP Morgan Chase
- PNC Bank
- TD Bank
While a bank might be your first option, keep in mind their inventory may be limited and because of that, the premium will likely be higher than what you’d pay through an online dealer.
Most banks offer gold for sale as a part of their investment or wealth management divisions.
If you plan to purchase gold from a bank, make sure you contact the right department before heading to your local branch.
How to Buy Gold Coins Online
Buying gold coins online is an easy option for many investors. It’s convenient, offers a broader selection, and a variety of payment methods.
That being said, not all gold dealers are legitimate and precious metals are a popular target for scammers.
Here’s how you can buy gold coins online:
- Research online dealers looking for ones with strong customer reviews
- Call a representative to compare pricing and premiums on the coins you’re interested in
- Check the dealer’s buyback policy and authenticity guarantees to make sure you can liquidate your coins if you need to
- Verify they offer insure shipping and request signature for delivery to make sure your package arrives to you
- If you choose to store your coins at home get a good safe otherwise set up an account with a depository to keep your gold safe for you
There are a lot of dealers out there but these are some of the best companies to purchase gold coins from online:
Look for dealers that are transparent in their pricing and policies, have strong reputations, and offer a good shopping experience.
Read reviews on Google and Trustpilot and look at customer complaints filed with the Better Business Bureau.
Why gold coins are a good investment?
Gold coins offer stability and liquidity, making them a good option for investors who want to hedge against inflation.
If you haven’t considered investing in gold coins before, here are some key benefits:
- Hedge Against Inflation: Gold maintains its purchasing power even when a currency loses value. The U.S. Dollar has lost 98% of its value since 1971!
- Tangible Asset: Unlike stocks or bonds, you can physically own gold coins.
- High Liquidity: Gold is popular and easy to sell without losing much value.
- Portfolio Diversification: You can invest in gold to reduce your risk exposure during economic downturns, allowing you to protect your wealth.
- Store of Value: Gold has been recognized as a form of wealth for millennia and it’s likely to continue to be regarded as a good store of value in the future.
Why gold coins are a bad investment?
While gold coins can help you beat inflation and protect your wealth, they can also be a bad investment.
Here are some drawbacks to consider:
- High Premiums: Expect to pay a markup when you buy gold coins. Not all dealers charge the same premium. Depending on where you purchase your coins from you might pay more, eroding the value of your investment.
- Storage and Security Risks: Keeping gold at home can make your house a target for theft or burglary.
- No Passive Income: Unlike dividend stocks, bonds, or rental properties, gold isn’t a source of revenue.
- Volatility: Historically, gold prices have gone up but the price fluctuates on a day-to-day basis. If you decide to liquidate your gold coins when the market is down, you could do so at a net loss.
- Potential for Counterfeits: There are a lot of scams and fake gold coins exist. Make sure you purchase gold coins from an authorized dealer and verify a coin’s authenticity before taking possession of it.
Bottom Line
Gold has been long regarded as a safe investment that can help you hedge against inflation while protecting your wealth.
Gold coins are easily accessible and can be purchased from reputable dealers. Not all coins have the same investment potential and different dealers charge different prices above the market rate.
While gold coins are a good way to diversify your portfolio you’ll want to do thorough research before you buy.
FAQs
Is it better to buy gold coins or bars?
Gold coins are more recognizable and easier to access for investors, making them more liquid than bars.
However, if you want to maximize the value of your investment, gold bars usually come with a lower premium.
Is it safe to buy gold coins from Stake.us?
Stake.us is known for online gaming, not for selling gold coins. Even if a website offers gold, stick to reputable banks and dealers that have an established history selling precious metals.
Are gold coins hard to sell?
Gold coins are in high demand and easy to sell. Look for buyers at reputable dealers, online marketplaces, and banks.
