There are several types of gold coins available, but they fall under four general categories. Some coins symbolize a nation’s commemorative events and historical figures, while others are more general. The types of gold coins we will discuss below differ in how they are valued, and they have distinct advantages and disadvantages when it comes to investment. However, they present a great option for investors interested in precious metals to diversify their portfolios.
One unique thing about bullion is that it comes stamped with a recognized weight and fineness. Contrary to the popular opinion that bullion only comes in the form of bars or bricks stored in depositories, a bullion coin is smaller hence easier to own or invest in. It is a less expensive investment than a whole bar.
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Proof coins are manufactured in low quantities than bullion but have a higher quality. They are the finest quality of coins that the United States Mint has produced as they feature a more reflective appearance. To ensure high-quality strikes and finish, they are treated specially, cleaned, and hand-polished. The term proof is derived from the coin’s finish.
Proof coins are struck with significant pressure or more than once with specially polished dies, contributing to their quality finish. It is important to note that the proof coins have a more refined detail and the field area is smoother than in the regular circulated coins because of the extra effort taken in striking the coin, making it stand out.
Proof coins are also encapsulated to prevent corrosion and maintain quality. A good example would be the iconic American eagle gold coins, and they also come in special packaging accompanied by a certificate of authenticity.
Numismatic coins are mostly older coins that have gained popularity and value among collectors. They are valued for their precious metal, artistic, and collector’s value. They are independently certified by third parties who grade them and provide information regarding their value. Some popular numismatic coins include the $5, $10, and $20 liberty and Indian gold coins.
Note that numismatic coins are not supposed to be included in precious metals or gold IRAs, but they are a great investment option for investors looking to diversify their portfolios outside of retirement accounts. Also, numismatic coins are considered worth more than their precious metal content because of their scarcity and grading nature.
These have both the features of bullion and numismatic coins. In the simplest form, semi-numismatic coins are newer bullion coins with a limited production, making them attractive to investors and collectors alike. For instance, the Royal Canadian mint has an animal series of coins whereby it produces special feature coins.
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Note that the value of semi-numismatic coins is likely to rise than bullion over time due to its limited production or scarcity. These low mintage coins are a great investment to diversify your portfolio with an additional feature of scarcity which makes them outperform bullion.
If you wish to invest in gold coins, it is best to work with a gold coins expert to help you pick the best option for your needs.