The Benefits Of Buying Bullion Coins
- Coins are commonly more suitable for those making a modest outlay.
- Due to their legal tender status, bullion coins are exempt from UK capital gains tax for UK residents.
- An array of iconic designs to choose from including The Royal Mints Sovereign & Britannia flagship ranges.
- Offers an opportunity to collect or gift numismatic coins at a reduced price to their proof alternatives.
- Bullion coin sizes range from as little as 1/10 oz. to 10 oz., depending on the range.
- Their size makes it easier to buy and sell in comparison to larger bars.
- The majority of The Royal Mints bullion coins are available in gold, silver and platinum.
- A physical asset you can actually hold in your hands.
- All of The Royal Mints gold coins are VAT free.
- Coins can be sold back to The Royal Mint through their buy back scheme. To find out more about selling your precious metals, .
- You have the option to protect your coins through The Royal Mints state of the art storage facility The Vault. To find out more about storing your bullion, .
Why Is Gold Valuable
In ancient times, gold’s malleability and luster led to its use in jewelry and early coins. It was also hard to dig gold out of the ground — and the more difficult something is to obtain, the higher it is valued.
Over time, humans began using the precious metal as a way to facilitate trade and accumulate and store wealth. In fact, early paper currencies were generally backed by gold, with every printed bill corresponding to an amount of gold held in a vault somewhere for which it could, technically, be exchanged . This approach to paper money lasted well into the 20th century. Nowadays, modern currencies are largely fiat currencies, so the link between gold and paper money has long been broken. However, people still love the yellow metal.
Know The Difference Between Bars And Coins
While all forms of pure gold have significant monetary value, not all investment-quality gold is equal. From an investment perspective, investors wanting to add the physical product that tracks the price of gold may wish to avoid gold coins. These coins often feature attractive designs, have historic value, and contain a lower quantity of gold, but still, cost more due to their numismatic value.
In addition to costing more, gold coins sometimes skew the value of an investors portfolio. For example, the highly regarded American Eagle coin produced by the U.S. Mint contains 91.67% gold but costs more than plain gold bars because of its value as a collectors piece. Some investors may want collector’s items, while others may want plain gold bars, which typically are the easiest to hold long term and convert to cash.
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Best Gold Bars For Investing In Gold Bullion
Our top picks for gold bars to buy includes gold ingots and finely-refined gold bricks ready for stacking.
The PAMP Suisse Fortuna 50g gold bar is one of our favourite gold bars to buy. Its a gold bar refined into a solid form with other metals or impurities removed and has an incredible purity of 99.99%. This gold bullion product is one of the most popular products on our website for many different reasons, including its unique design, which features Lady Fortuna the goddess of gold and fortune. In addition, it is a gold bar that will continue to appreciate over time, making it an excellent gold investment choice.
TheUmicore 100g gold bullion baroffers incredible value for money and comes with the highest grade of gold available a 999.99 fine . The design on this gold bar features the Umicore logo, gold purity and weight.
The Metalor 1000g gold ingot gold brick is a great investment choice for those looking to buy larger quantities of gold bullion at once. It has incredible value with an unrivalled gold purity of 999.99 gold with a unique serial number and is hallmarked by Metalor to prove its authenticity.
The Perth Mint gold bar is another great choice for those looking to buy a gold bullion ingot or brick in large quantities, especially if youre looking for true mint-condition gold bars that are free from scratches, marks or signs of wear. This gold bar comes with a unique serial number, gold purity and weight through x-ray technology to verify authenticity.
When Selling Bullion In The Usa
Certain quantities and types of bullion products when sold to US based bullion dealers and bullion buying companies are deemed reportable on IRS-1099B forms.
The following are the current minimum reportable bullion transactions when selling to US based bullion companies:
Old US 90% Silver Coins
$1,000 face value bag of any combination of dimes, quarters, half dollar, or dollar coins.
All other bullion items not listed above remain fully exempt from US based bullion dealer and bullion buying company IRS 1099B reporting requirements.
For example, you can currently sell any and all government minted .999 silver bullion coins to US based bullion buying companies and those silver coins remain currently exempt from IRS 1099B dealer reporting requirements. So too exempt are many of the modern sovereign gold bullion coins not listed above .
Of course we are merely referring to bullion reporting privacy rules in the USA. Consult your tax professional on any and all capital gains or losses from your bullion holdings.
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Where Should I Buy Gold
To get the best deal when purchasing physical gold, find a reputable coin shop or online gold dealer. They will offer their products at a fair price with a consumer-friendly return policy. Reputable coin shops will also tap their industry resources to fill your want list if they dont have the items youre looking for at the moment.
No matter which form of gold you choose, buying gold bullion helps your asset portfolio weather downturns in equities, and counteract inflation. Gold is also the only major asset with both high liquidity and no counterparty risk.
Shop for gold online at Gainesville Coins by browsing the gold products below:
Should You Invest In Gold
Because gold prices tend to be less volatile than stocks, gold is viewed as a comparatively safe investment. People use gold and other precious metals to diversify their portfolios and to serve as a hedge when other investments decline in value.
There are numerous ways to invest in gold. Some options are more liquid than others, which can make them better for investment purposes, so its helpful to explore the pros and cons of each.
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The Benefits Of Buying Digital Precious Metals
- For a cost effective option, our DigiGold service allows you to purchase physical gold, silver or platinum based on monetary value instead of weight.
- Straightforward and transparent pricing.
- You can invest in precious metals from as little as £25, as you are buying a percentage of a bullion bar.
- DigiGold comes in the form of large bars, without the need to cut or shape them into smaller quantities, so there are economies of scale that are passed on to you. The prices are worked out to the nearest 0.001oz, so youll know youre getting the latest rates when you buy or sell your bullion.
- You own your DigiGold and have full legal title over it, so theres no third-party risk involved.
- The Royal Mint is custodian of the bullion and it is automatically stored in The Vault. Its reconciled and accounted for daily, and is guarded by trained security staff 24 hours a day.
- Our digital gold is VAT-free for non-VAT registered individuals.
- It makes buying and selling bullion effortless – just open an account, transfer in funds and you can use your balance to buy DigiGold in whatever quantity you choose 24 hours a day, 7 days a week, 365 days a year.
- The Royal Mint offers a guaranteed buy back option through DigiGold, so you also dont have the risks associated with storage, as you could with physical coin and bar purchases.
- You can take physical ownership of your precious metals at any time.
- To find out more information on our DigiGold service, .
Canadian Maple Leaf 1/4
Stamped 1/4 OZ OR PUR and 9999, Canadas Gold Maple Leaf is not quite the smallest but still is mighty. With a legal tender value of $10 Canadian, it is a go-to bullion acquisition for those who want access to significant but portable quantities of 24k gold. Sensitive to demands, the mint expanded Maple Leaf options into smaller sizes, keeping the 1/10- and 1/20-ounce weights and adding in 2014 a 1-gram, or 1/25-ounce, coin.
The Gold Maple Leaf seems to be holding its own, however. Current market prices quote $132 over spot for orders of fewer than 20 while orders of 40 or more are about $120 over spot per ounce. A bit pricier than the American Eagle 1/4-ounce bullion, the 1/4-ounce Maple Leaf has all the same micro-engraved security features the Royal Canadian Mint offers in its larger versions.
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Bullion Legal Tender Law Rights
If you are a US citizen it may make sense to buy US Mint bullion coins and even older 90% Silver Coins as they all have legal tender face values. Coins with legal tender values give the holders the lawful right to use them in direct contracts.
For example, you could buy a private business explicitly using legal tender coinage in the bill of sale . If enforced by a notary public, the bill of sale would most likely be enforceable in a court of law. Of course there are some who foolishly still think or formerly thought they could use this loophole to avoid paying capital gains taxes but that has proven to be problematic.
We simply make this legal tender coin suggestion in the worst case scenario of a currency crisis or hyperinflationary episode where buyers and sellers may not want to transact in volatile fiat currencies as opposed to more historically reliable bullion coinage.
This potential court enforceable legal tender bullion trade for goods or services option may not be legally enforceable if merely using generic privately minted bullion products, non-legal tender coinage, or even government struck and guaranteed bullion bars .
How To Buy And Keep Gold Coins
If you decide to buy gold coins, get it from a reputable dealer or financial institution. We wouldnt buy gold coins on Craigslist, but thats just us.
If you buy gold coins from individuals or from anyone else youre not sure of, have the gold coins authenticity verified first. You dont want a collection of gold-plated lead.
U.S. gold coins come in one, one-half, one-quarter, and one-tenth ounce denominations. You pay a premium over the price per ounce when you buy gold coins, which is how the dealer makes a profit.
You may pay a higher premium if you buy gold coins less than one ounce each. You should generally buy bullion coins, such as the American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand.
Collectors coins, called numismatic coins, are a different game than bullion gold coins. They can sell at a very high premium, and their prices are dependent on more factors.
Unless you are very knowledgeable about collectors coins, stick with bullion coins.
Once you have the coins, you may be tempted to run the coins through your hands, like Ebenezer Scrooge.
But of course you wont you should leave coins in their cases, away from scratches and fingerprints.
Dont even think of hiding gold in your house, unless you have a safe. Thieves know where to look, or they can find it with a metal detector.
For very little money, you can rent a safe at a bank for your gold and other valuables.
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Gold Investments And Diversification
One benefit of gold investments is that they can help diversify your portfolio. Diversification refers to investing in a range of assets across a variety of industries, company sizes and geographic areas. Owning stock in a gold mining company or a gold ETF exposes you to the gold industry, and since gold does not necessarily move in tandem with the stock market, it can help further diversify your holdings. Of course, if your entire portfolio is made up of gold investments, it wont be diversified at all.
What You Need To Know About Buying Gold Coins Online
The gold and silver market have taken off in a big way these last few years, with a faster-paced society and a more interconnected world economy, economic stability is more susceptible than ever to outside influences. A strike in China can influence the dollar, for example, and political instability in Europe affects the course of our economy.
The value of the dollar rises because people believe the US is doing great, regardless whether that is true or not. It is a matter of faith and trust.
An investment in Gold, however, maintains an intrinsic value that is not so closely tied to the actions or economic policies of a government. A gold coin today is worth its weight and holds its value better than many other commodities.
Gold bullion is popular among those in the know.
Aside from the relatively stable value of bullion over paper currency and other commodities, why do people invest in precious metals and coins?
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Diversify Your Bullion Coins
Of course, this list of the best bullion coins is the opinion of the author. However, thinking internationally rather than just domestically can greatly improve your ability to preserve your wealth, including your gold investments.
At Nomad Capitalist, we discuss buying gold as a way to internationalize your assets. While Gerald Celente once told me to buy gold and keep it in a coffee can in your mother-in-laws basement, any good gold diversification strategy should include gold bullion stored offshore, either in a private vault or with a trusted broker.
If you want to internationalize your gold and bullion holdings, BullionStar in Singapore now offers some of the best storage rates on gold and silver purchased from them. Premiums are a bit higher than discount gold brokers in The Land of the Free but among the lowest in Asia. Singapore is one of my favorite places to store assets .
Investing In Gold Coins In Other Ways
You can even buy coins with your Individual Retirement Arrangement . You wont be able to take these coins home.
Your IRA administrator will keep them in a vault for you. Coins must meet standards of purity to qualify as IRA investments.
You can always invest in gold without actually bringing home any gold coins.
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Frequently Asked Questions About Buying Gold In Canada
How do I store my gold?
Once youve purchased your gold, youll also need to find a safe place to store it. There are several options to consider, including the following:
- Bullion dealers. Many gold dealers will also offer a storage service where you can keep your gold bars or coins for a fee, so ask about the storage options available when you make your purchase.
- Safety deposit boxes. You can rent a safety deposit box at a bank to securely store your gold bullion.
- Secure vault storage. For high-level security, you may want to research vault storage companies near you and the storage options they offer.
- At home. You can also choose to store your gold at home. This obviously may not be as secure as some other options, so you may want to get a home safe installed. Youll also need to update your home and contents insurance to make sure your precious metal is covered by your policy .
Do banks sell gold?
Some banks do sell gold to customers, but many do not. Canadas Big 5 banks TD Canada Trust, CIBC, BMO, RBC and Scotiabank all sell gold and other precious metals. If youre interested in buying from a bank, talk a local bank representative to find out what your options are, and make sure your investment comes with a secure way of storing your precious metals. Youre also more likely to get a better price if you are a customer of the bank youre buying gold from.
Potential For Higher Product Premiums
During physical bullion shortages, like in the fall of 2008 for example, many bullion coin premiums spike. It is during these times bullion owners of highly demanded bullion products could choose to arbitrage by selling for example many American Silver Eagle Coins when premiums are high and use the proceeds to acquire lower premium bullion and ultimately own more ounces in the end.
Note the +30% premiums that American Silver Eagle coins were sold at over the fluctuating silver spot price in late 2008 and early 2009. In the case of another major financial crisis, highly trusted bullion products could again receive large premiums in relation to their respective precious metal spot prices.
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Pamp Suisse Gold Bars
PAMP Suisse may be the most well known producer of gold bullion in the world. They offer a large number of different gold bars and medallions in several varieties, which each feature a unique design. PAMP Suisse, located in Switzerland, has been manufacturing gold bars for private investors and collectors since the 1970s. Over the last 5+ decades, PAMP has become a preferred choice for those looking to purchase high quality gold bars. They make .9999 pure gold bars ranging in size from 1 gram all the way up to kilogram sizes and even produce a 400 ounce LBMA good delivery gold bar.