Investors who wish to diversify their portfolios have a number of options, one of which is precious metals. Gold, in particular, is an attractive investment because the metal has a fascinating history and tends to hold its value over time. A great way to invest in gold is by purchasing United States gold bullion coins. This article examines this coinage in more detail.
People who have never used coins as an investment vehicle before, or those who are unfamiliar with the concept of bullion, make not understand why the government makes these coins. Unlike circulating coins, such as common pennies, dimes, or quarters, bullion coins are meant to be a store of value. For example, bullion coins help investors retain value because the worth of a bullion coin is tied to the underlying value of the precious metal.
An interesting point is that bullion coins are actually legal tender. They have a nominal face value, the value imprinted on each coin, just like nickels or dimes. You would never actually use a bullion coin for a transaction, however, because the value of gold content is worth far more than the face value. For example, some U.S. gold coins have a face value of $50, but the actual value based on the price of gold could be well over $1000.
The U.S. Mint produces two main types of gold bullion coins, the most common of which is the Gold Eagle. This coin gets its name from the image of a bald eagle on the reverse side. The design is based on an older gold coin that was produced early in the 20th century and whose production was discontinued in 1933. You can purchase Gold Eagle bullion in four different weights. The mint makes the coins in one-ounce, half-ounce, quarter-ounce, and tenth-ounce weights. Coins with a higher weight will, of course, be worth more than one with a lower weight.
The second type of gold bullion coin made by the U.S. Mint is called the "Buffalo" coin because of the image of an American buffalo on the reverse. The front, or obverse, has the image of an American Indian. The design is a copy of the one used for buffalo nickels, which were minted from 1913 to 1935.
Although gold bullion coins are a solid investment and a good way to diversify your holdings, they are not sold to individual investors by the U.S. Mint. To purchase, you must visit a reputable gold dealer.
If you are looking to buy gold U.S. coins, contact a gold dealer near you.