If you go out in the market to purchase gold coins, you will realize that there are hundreds of options to choose from. While they are all made of gold, not all might be right or suitable for you. This is why it is important to know about gold coins.
Here are some of the most popular options:
- American Eagles
- Chinese Pandas
- South African Krugerrands
- UK and Australian Sovereigns
- Canadian Maple Leafs
Here are a few factors to consider when selecting a gold coin:
- The Type: Options include Sovereign, Eagle, etc.
- Gold Content: Calculated in grams or ounces, this tells the exact amount of gold a coin contains. This is typically lower than the actual weight of the coin.
- The Size: The size might be calculated in value or weight, i.e.: 5 grams.
- Face Value: It’s the true value of a coin. For example, 10 rands or 1 rand (South African).
- Weight: Typically measured in ounces, it tells the true weight of a coin. In some countries, however, it’s also measured in grams.
- Fineness: This factor tells the amounts of impurities your coin contains. Most coins are usually 99.7% fine. Companies add other metals like silver to make it easy to mint coins. However, you might also be able to find some coins with a fineness of 99.9%.
- Price: This is the amount you will have to pay to own the coin. It usually includes margin and tax and is generally called 'price above spot'.
Make sure to look at the picture of what you’re purchasing if you’re buying gold online. Most sellers will display multiple photos and the information highlighted above on the product page. You must ask for this information if it’s available on the page.
In addition to this, some sellers may also display additional information including date of issue and condition, i.e.: if it’s new or old.
To sum it up, pay attention to these factors and pick a coin that suits you. Some rare coins might be more expensive than other coins of the same value and fineness.