Gold Coin Investment: Where To Buy?

Gold has been a popular way for investors to diversify their portfolios and protect their wealth for hundreds of years. Gold coins, in particular, may be attractive to investors for their aesthetic and historical value in addition to their monetary value. Gold coins are generally bought from dealers, pawnshops, or individual sellers. If you're buying online, make sure to go through a dealer listed in the U.S. Mint's database. If you're buying in person, some popular options include Costco, pawn shops, and local dealers or collectors.

Gold bars

When buying gold bars, you can choose between licensed online retailers or local precious metal retailers. Online retailers offer convenience, a wide variety of products, and pricing transparency. They may also offer discounts for buying in large quantities or paying by credit card. However, it is important to conduct due diligence and select a reputable seller when buying gold online. Some well-known and trustworthy gold dealers include JM Bullion, American Precious Metals Exchange (APMEX), and American Hartford Gold.

Local precious metal retailers allow you to inspect the gold in person and ask staff about its authenticity, purity, and other factors. Prices at traditional retailers may be higher than online retailers due to the overhead costs of maintaining a physical store.

Some banks in the US also sell gold bars, offering the advantage of public accountability of a federally regulated institution. However, the selection may be more limited compared to online retailers.

When evaluating gold bars, consider the following factors:

• Purity: Investment-grade gold should be at least 99.99% pure.
• Weight: The size and weight of the gold bar will affect its cost and ease of storage.
• Authenticity: Perform DIY tests such as the magnet test, ping test, or float test to ensure the gold is not fake or impure.
• Price: Compare multiple sellers' prices against the current spot price of gold to ensure you get a fair deal.

Additionally, consider the storage and insurance costs associated with owning physical gold. You can opt to store gold in a safe at home, but many investors prefer a custodian or safe-deposit box for added security. Insurance is also recommended to protect against theft or natural disasters.

Popular gold bar designs include the PAMP Fortuna, PAMP Lunar, Valcambi CombiBar, Perth Mint Gold Bar, Royal Canadian Mint Gold Bar, and Credit Suisse Gold Bar.

Gold coins

Where to Buy Gold Coins

Online Dealers

Online dealers such as APMEX, JM Bullion, and SD Bullion are also options for purchasing gold coins. These dealers offer a convenient way to buy gold coins, but it is important to ensure their legitimacy and your own security when making such transactions.

Local Dealers and Collectors

Local dealers and collectors can be a good option for those who want to inspect the gold coins in person before purchasing. However, it is still important to ensure the legitimacy of the gold's purity and the seller.

Pawn Shops

Pawn shops may also sell gold coins, but it is important to be cautious when buying from these establishments as they may not have the same level of expertise or legitimacy as specialized dealers.

Factors to Consider When Buying Gold Coins

When buying gold coins, there are several factors to consider:

• Purity: Investment-grade gold coins should be at least 99.5% pure gold. The American Gold Buffalo coin, for example, is 24 karats.
• Weight: Gold coins come in a variety of weights, from 1/25 oz to 1 oz, or even up to 1 kilogram.
• Reputation: Look for gold coins that have a good reputation and are widely recognized, as these will be easier to liquidate if needed.
• Scarcity: The scarcity of a gold coin can affect its value, as some coins are only minted for a specific year.
• Collector's Value: Gold coins may have a premium due to their collector's value, so it is important to be aware of this when considering the overall value of the coin.

Pawn shops

Gold coins are a good investment because they are a tangible asset that is easy to buy and sell. They have been used as a form of currency for centuries and are still accepted by many governments. They are also a safe investment, as gold is stable and does not corrode.

There are several benefits to buying gold coins from a pawn shop. Pawn shops usually have a wide range of gold and silver jewellery, from branded contemporary pieces to antique items. You may even find some unique gold jewellery pieces that you won't find at your local jewellery store.

Gold jewellery in pawn shops is almost always more affordable than in jewellery stores because the pieces are second-hand. However, gold does not lose its value, so you can be sure that you are getting your money's worth. Pawn shops also authenticate all gold jewellery pieces that they buy and sell, so you can be confident in the quality and authenticity of the gold you are purchasing.

When buying gold from a pawn shop, it is important to learn about gold purity. The weight of gold is measured in troy ounces, with one troy ounce equalling 31.1034768 grams. The purity of gold is measured in caratage, which indicates the purity of gold alloyed with other metals. 24-carat gold is pure gold, so an 18-carat gold ring will be more expensive than a 14-carat gold ring.

It is also worth noting that you may be able to negotiate with the pawnbroker when purchasing gold, although there is no guarantee that you will get a lower price. It is always a good idea to have a budget in mind before visiting a pawn shop, so you know how much you can afford to pay.

In summary, pawn shops are a great option for buying gold coins. They offer a wide selection of gold jewellery, often at more affordable prices than jewellery stores. Pawn shops also authenticate their gold items, so you can be confident in the quality and value of your purchase. When buying gold from a pawn shop, be sure to educate yourself on gold purity and have a budget in mind.

Online dealers

Online gold retailers offer the convenience of purchasing gold bars and coins from the comfort of your home. They are a popular option due to their accessibility, wide variety of products, and pricing transparency. Some even offer discounts for buying in large quantities or paying by credit card.

However, when buying gold online, it is important to do your due diligence and select a reputable seller. As with any financial product, there are scammers out there. Look up reviews and the reputation of any retailer you are considering on sites like the Better Business Bureau and Trustpilot to ensure you will be working with legitimate professionals.

• JM Bullion: JM Bullion offers its customers a user-friendly website, transparent pricing structure, dedicated customer support, and investor-friendly features. It has received several hundred thousand positive reviews. However, it does not sell internationally.
• American Precious Metals Exchange (APMEX): APMEX is the largest online precious metals dealer globally, with a solid track record, strong customer service, and more than 20,000 products to offer. It has a broad selection of gold and silver bullion and coin products, as well as an extensive selection of platinum and palladium products. Its coin selection includes coins from the United States, Canada, Australia, South Africa, Mexico, and beyond. APMEX also offers free shipping on orders over $199.
• BGASC (Buy Gold and Silver Coins): BGASC offers a complete lineup of gold products, with a primary focus on selling gold bullion coins. It has a vast selection of coins, including American Eagles, Canadian Gold Maples, South African Krugerrands, Pre-1933 U.S. Gold, and Australian Gold Kangaroos. Its products are priced very competitively, and it offers free shipping for orders of $199 and over.
• Money Metals Exchange: Money Metals Exchange has quickly amassed a customer base of more than 500,000 customers. It offers highly competitive pricing, personalised service, a pathway for new investors, and one of the best online reputations. Customers can easily navigate its website to shop for coins and bullion by category and weight, and it offers an automatic monthly savings plan starting at $100 a month. Shipping is free for orders over $199.
• SD Bullion: SD Bullion offers low prices compared to other dealers and backs this up with a low-price guarantee. It offers a full array of precious metals, including gold, silver, platinum, copper, and palladium. It offers free shipping on orders over $199 and will price match if you find a lower price elsewhere.
• Golden Eagle Coins: Golden Eagle Coins has an extensive selection of gold coins, including collectible and numismatic coins. It also sells silver, platinum, palladium, and copper coins. It offers standard free shipping for orders of $99 or more and has a seven-day return policy.
• American Hartford Gold: American Hartford Gold has been in business since 2015 and has garnered high ratings from consumer advocacy and review organisations. It is accredited by the Better Business Bureau (BBB) and holds an A+ rating, as well as an AAA rating from the Business Consumer Alliance (BCA). It offers a price match guarantee and a three-step buyback program with no fees. However, its website does not include pricing information, and customers must call to inquire about the cost of each item.
• Goldco: Goldco's website is a comprehensive resource for learning about investing in precious metals, with over 800 articles on the subject. It offers a full selection of precious metal products, including IRA-eligible metals. However, the website does not give much information about Goldco's products outside of its gold and silver coin offerings, and shoppers must call customer service to make a purchase.
• Orion Metal Exchange: Orion Metal Exchange offers competitive pricing and will beat the advertised prices of its competitors. It offers gold, silver, platinum, and palladium products for retirement accounts or ownership in commercial depositories or home storage. It lists its prices for all its metal coin products on its website, but it does not list pricing and product details for its precious metal bars.

Local dealers

Gold coins are a popular investment option, but it is important to be cautious when buying them. Dealing with local dealers in person can be a safer option than buying online, as you can assess the quality of the gold and the trustworthiness of the dealer.

Local gold coin dealers can be found through a simple online search, and they are often listed on websites with contact details and addresses. It is recommended to choose a reputable dealer, and you can ask for documentation to attest to the quality of the gold.

When buying from a local dealer, you can inspect the gold coins and ensure their purity, which is critical for their value as an investment. Look for gold coins that are at least 91% pure, and preferably 99.5% or higher for investment-grade gold.

Some local dealers may also offer advice and guidance on investing in gold, and they can be a good source of information for first-time buyers. They can explain the factors that determine the price of gold, such as supply and demand, inflation, and volatility in the US dollar.

• Research local dealers: Search for reputable local dealers in your area, and prioritize those who are established and have a good reputation.
• Compare prices: Visit multiple dealers to compare prices and assess the fair market value.
• Inspect the gold coins: Check for hallmarks or stamps that indicate the purity of the gold. Look for coins that are at least 91% pure, and preferably 99.5% or higher.
• Request documentation: Ask for documentation that certifies the purity and weight of the gold coins. This will be important when you eventually resell the coins.
• Negotiate the price: Local dealers may be open to negotiating the price, especially if you are buying in bulk or becoming a repeat customer.
• Storage and insurance: Discuss storage and insurance options with the dealer. They may be able to offer secure storage solutions or advise you on the best ways to store and insure your gold coins.
• Payment methods: Inquire about accepted payment methods. Some dealers may offer discounts for certain payment types, such as cash or bank wire transfers.
• Return policy: Ask about the dealer's return policy in case you change your mind or are unsatisfied with your purchase.
• Build a relationship: If you plan to invest in gold coins regularly, consider building a relationship with a trusted local dealer. They may offer you better deals or priority access to new inventory.
• Online dealer listings: Utilize online dealer locators, such as the U.S. Mint's Bullion Dealer Locator, to find authorized local dealers for gold coins.

Remember to exercise caution and perform your due diligence when dealing with local gold coin dealers. Always prioritize reputable and established dealers to minimize the risk of fraud or scams.

Frequently asked questions