Gold Trade: Investing In Gold Bullion Bars and Coins

It’s not uncommon to hear new gold investors complain about their gold bullion coins, saying they “want real gold bullion bars, not just coins.” This is a common issue that comes up when investing in gold: Do you make you gold investment primarily in gold coins or gold bars?

A Common Misconception About Gold Bullion

To start, perhaps we need to clear up a misconception that many have: what exactly gold bullion is. It’s quite common for those new to gold investing to think of the round pieces of gold as being worth less than the square pieces of gold bullion. Bullion Coins are a collectors item and in rare supply many believe. If you want to make a real gold investment then you have to buy your gold in square form. This kind of thinking is likely influenced in no small part by the media and movies like James Bond, and books like Cryptomicron that talk about massive reserves of gold bullion bars, stacked in alternating directions as high as the eye can see in the style of Fort Knox. The truth though, is that both coins and bars are equally valuable in terms of gold bullion.

Investing in gold for the sake of protecting your assets means you are primarily interested in the spot gold content of a given object. Both coins and bars contain pure 24 carat gold and are valued at the current market price for spot gold. However there can be added charges to both when you purchase, this is called a Premium. Gold Coins often are sold at a higher premium over the spot gold price due to their collectible nature. Gold Bars though can also be quite a bit more expensive than their spot gold if you are not careful. Often their premium includes the price of refining, fabricating, shipping, assaying, and storing.

Should I invest in gold coins or gold bars?

This depends on a number of factors. Gold bars certainly are “cheaper” to buy in that they often come at a much smaller premium than coins. Also it is always more efficient to buy any commodity in bulk, and buying a 400 troy ounce gold bar, while difficult to lift without a forklift, is about as efficient as it gets when it comes to buying in bulk. These gold bars, called “Good Delivery Gold Bars” are used by major corporations, world banks, and the elite gold investors to settle debts and make payments.

Likely investing in a Good Delivery Gold Bar is out of the league of the average investor. If this is the case then perhaps you will want to look into investing in smaller sized gold bars and ingots. However, keep in mind that while they may be cheaper at first to purchase than gold bullion coins, there can be many additional fees when storing and/or liquidating after you remove them from storage at an insured and recognized precious metal vault. One of the biggest reasons gold bugs invest in gold is to hedge against the falling economy. This means that when the dollar falls, one needs to be able to liquidate their assets and wealth into more meaningful things like food, shelter, and protection. Liquidating a gold bar worth $100,000 is far more difficult than liquidating an equal amount of gold in the form of coins or ingots.

Gold coins or gold ingots are the way to go if you are looking to make a small to moderate gold investment. Gold ingots are likely the best option, however gold coins also hold collectible value and often can be sold at more than their spot gold worth. So if you can manage to pick up some gold bullion coins like krugerrands, American eagles, maple leafs, or panda gold coins at a low premium, then by all means go ahead! Diversification is the key to a good gold portfolio.

Investing in gold in this way will allow you to have both a wealth that is protected against economic collapse and also easily converted into useful and necessary goods should the unthinkable happen.

Latest gold coin auctions:

If you have a gold coin necklace I am quite sure it is beautiful and you receive many compliments. Not only is it likely a beautiful addition to your wardrobe, it is a sort of hedge against inflation, because it is gold and will always be worth something. As a piece of jewelry you probably paid a high commission well past the value of its gold content, that is why it is not considered bullion. Or perhaps the coin is an heirloom that has been passed down for many years in your family. Gold coins in necklaces are not exactly the same though as making a gold bullion investment. As we already stated, the gold coin pendant is not considered gold bullion per se due to its ornamental nature. In addition when you sell any gold jewelry you will receive a paltry sum as opposed to gold bullion. Perhaps though, people who wear this type of gold coin necklace are probably not serious gold investors nor are they interested in becoming one. They are primarily interested in high fashion. Whatever you paid for the coin that came with the necklace, the necklace itself produced quite a commission for those that sold it, even if the necklace is 24 kt gold. The more elaborately designed the necklace part, the more the markup.

It is risky enough to wear ostentatious gold necklaces, now with a coin added in these times, depending upon the area and your knowledge of the area, you could be taking on serious risk. This risk can take the physical and economic form when you find yourself knocked-out minus your necklace and coin. If you want a nice coin necklace purchase one with some Euros attached. This way you have a nice gold necklace for fashion and you have some extra money to be more serious in your gold purchases. A good gold coin necklace should be used only in an emergency, reminiscent of hundreds of years ago. This is when in a leather pouch under your tunic and around your neck you kept your gold coins, or other coins of value.

Gold buying, and selling for that matter, is a serious transaction and should be thought through as to the best price for you and the most convenient form for any contingencies. That being said, it's not unheard of to find some amazing deals on gold coins that come in necklace form on estate auctions or sites like eBay. These can be a real investment if the price is right, often it is sold out of ignorance for far below the current spot gold price.

Gold Coin Necklaces On eBay Right Now

Gold/Silver Coin Necklace, Mexican 20 Centavo "Eagle"    113.87

ROBERTO COIN Made In Italy Ruby 18K Gold Necklace Length 13 in. Weight 106.1g.    11,089.00

New ROBERTO COIN Made In Italy 5.02 CTW Diamond 18K Gold Necklace Weight 74.5g.    14,229.00

THRUPP-NEE BIT STERLING SILVER COIN PENDANT AND 9CT YELLOW GOLD NECKLACE    237.30

THRUPP-NEE BIT STERLING SILVER COIN PENDANT AND 9CT YELLOW GOLD NECKLACE    237.30

Roberto Coin 18K Yellow Gold Diamond Pendant Necklace    2,999.95

THRUPP-NEE BIT STERLING SILVER COIN PENDANT AND 9CT YELLOW GOLD NECKLACE    237.30

THRUPP-NEE BIT STERLING SILVER COIN PENDANT AND 9CT YELLOW GOLD NECKLACE    237.30

Roberto Coin 18K White n Rose Gold Aquamarine Necklace    3,199.95

Latest gold coin auctions:

Bullion is a precious metal in bulk form recognized for its fineness and weight at the current value of gold, not for its face value as money. Gold bullion bars come in various sizes and if large and heavy are usually stored in vaults. They range in size from grams to ounces. The smaller sizes can be kept in your home. Ingots, plates, and coins can also be termed bullion. When they are kept in vaults there is a chain of possession that is supposed to be followed so a less pure bar, is not secretly exchanged for a pure gold bar.

Gold bullion bars of 1 oz. will have a much smaller markup than a 1 oz. coin. You would obviously get more value for your money in purchasing gold bullion bars as opposed to gold coins. There are some coins with a lower markup that can be purchased. These are the Mexican 50 Pesos and Austrian 100 Coronas. They are not promoted in the U.S. so their markup is less. Some retirement accounts physically accept delivery of gold bullion bars.

Larger gold bars are kept in vaults. When you want to sell them you will encounter fees such as assay fees, refining and handling fees. It is much more costly and difficult to sell larger bars. Gold bullion stored in vaults or in your home is a hedge against inflation. If the dollar falls in value by 30%, you can be fairly certain that your gold value will have increased. While those holding dollars have lost almost a third of the value of these dollars, the holders of gold have increased their net worth. In case of a national emergency it would be beneficial and wise to have gold bullion bars denominated in grams nearby.

It is very possible to find and purchase gold bars, though a first time investor may find it a little more difficult than investing in gold bullion coins. This is because coins are readily available and easy to find online and in brick and mortar gold dealer stores. They tend to be cheaper and in smaller denominations than your standard gold bar or ingot. Gold coins are also smaller and easier to store and they are far more inconspicuous than a stack of shimmering bars. In addition to that, gold coins are easier to liquidate quickly should the need arise since you also have the collector market to sell to.

That being said, if you are looking to make a serious investment in gold bullion, you won't want to pay the premium that comes along with gold coins. You want as much gold as possible, for as little as possible. Keep in mind though the logistical difficulties of storing, transporting, and assaying the bars when you begin the transaction so you are not blindsided. But the truth is- gold bullion bars are increasing in popularity as economic uncertainty grows and you can get some great deals right now on ebay whether you are buying your bullion by the gram, ingot, or ounce.

Gold Bullion Bars On Ebay

PAMP Suisse 31.1 Grams (1 oz.) .9999 Gold Bullion Bar    1,825.00

(1) 2.5 Grams Pamp Suisse 24K GOLD Bullion Bar - Sealed Assay Card ★FREE SHIP!★    192.00

Pamp Suisse 2.5 Gram .9999 Pure Gold Bullion Bar    154.75

50x 1 GRAIN SOLID GOLD BAR .999 24k GOLD FINE BULLION - SAVE & INVEST    624.95

100x 1 GRAIN SOLID GOLD BAR .999 24k GOLD FINE BULLION - SAVE & INVEST    1,194.95

Pamp Suisse 5 Gram .9999 Pure Gold Bullion Bar    320.00

50 x 1 Gram Perth Mint Gold Bullion Bar 999.9 Fine (RRP $4500)    4,500.00

1 OZ PAMP SUISSE GOLD BAR 999 FINE BULLION-24k    1,988.00

1 oz PAMP Suisse Gold Bar .9999+ Fine Bullion    1,775.00

5 Gram 24K Gold Bullion Bar - 995.0 Pure Gold    169.50

5 Gram 24K Gold Bullion Bar - 995.0 Pure Gold    169.50

5 Gram 24K Gold Bullion Bar - 995.0 Pure Gold    155.00

Latest gold coin auctions:

Gold still represents the ultimate form of payment in the world." - Alan Greenspan, Testimony before US House Banking Committee, May 1999

Gold has been used as money for thousands of years, it may have even been the first metal used by humans. A funny detail concerns the oldest known map called the Turin Papyrus, an ancient Egyptian mining map 1320 -1300 BC, which is showing the plan of a gold mine together with indications of the local geology.

The bottom line is that gold has retained its purchasing power over thousands of years and therefore has proven itself as the ultimate protection of wealth. Gold has no counter party risk, gold is not some one else’s liability, gold can not be printed out of thin air, no nation has the capability to destroy the value of gold, gold does speak for itself.

Some one who understood gold’s real value against paper money very well is former French President Charles de Gaulle:

There can be no other criterion, no other standard than gold. 
Yes, gold which never changes, which can be turned into ingots 
bars, coins, which has no nationality and which is eternally and 
universally accepted as the unalterable fiduciary value par exellence” 
Charles de Gaulle
In February 1965, President De Gaulle said in a landmark press conference “What the United States owes to foreign countries, it pays, at least in part, with dollars that it can simply issue if it chooses to”.
De Gaulle not too happy with the implication of having the dollar as the reserve currency responded this way:

Since dollars could still be exchanged for gold at the time, De Gaulle instructed the Banque de France to increase the rate at which new dollars were converted to gold bullion and sent the French navy across the Atlantic to hand over dollars and pick up gold bullion in exchange. In 1965 alone, the French navy ferried back over $150 million of gold bullion thereby increasing the proportion of French national reserves held in gold from 71.4% to 91.9%.

The bottom line is that De Gaulle didn’t trust the paper dollar which were circulating in ever increasing quantities and opted for real money which is of course gold.

History leaves no doubt it. The only money that stood the test of time is gold, all other currencies have failed. Gold is the only true protection of wealth.

Eric Hommelberg

The Gold Drivers Report

Latest gold coin auctions:

For eons, gold has been used as jewelry, for greatly valued ornaments, in religious art, and it is often associated with God as in the case of ancient Isreal's Most Holy, the Aztecan Pyramids that were covered in gold, and the golden temples of India. Gold and silver were used in sun and moon worship by many ancient cultures.

For this reason, gold has always been a form of currency. This metal was worth more than money, it had emotional importance to the owners, and this emotional attachment to gold has become almost instinctive in humans.

Since gold was such a recyclable, and universally appealing commodity, it's market crosses cultural and political borders. No matter who's face is on the gold coins, everybody wants it. In ancient times the bullion could just be melted down and recast into whatever form of currency they wanted.

In almost every culture, the gold standard used to be how paper money received its value. In theory, you should have been able to take any piece of paper money and exchange it for the the equivalent amount of gold. The worlds central bankers have used gold since banks were first started to settle financial accounts. The Federal Reserve stores... you guessed it: gold. Not platinum, not oil, not soybean oil, but cold hard exploded neutrino star gold.

Why would the Federal Reserve, the worlds major financial institutions, and those "in the know" demand their accounts be settled in gold? Because they know exactly how easy it is to print paper money out of thin air. It literally grows on trees. The US is printing money like there is no tomorrow, and very likely that may end up being the truth. While they earn interest on their dollar denominated investments, they demand their settle their accounts with each other in gold bullion. That should tell you something.

Gold is the worlds reserve currency, in every culture that had the commodity available they have chosen to use gold as their base when dealing with outside nations. This has made gold the base of of the money economy in international trade.

There has been a lot of talk about the free market voluntarily returning to the gold standard. However, for many reasons, this is highly unlikely to occur within our lifespans. If a major country, such as China (who is currently buying up as much gold and other commodities as it can get its hands on), restored the gold standard and allowed the everyday man to exchange their paper money for gold, it would become the new standard by which the currencies of the world were based. When the gold begins to run out though, the government could suspend convertibility and put the everyday person at risk, so it is not likely to happen any time soon.

But the truth is, now is the time to invest in gold, it is currently in high demand in the markets, and its value is continuing to rise. In times of recession, the most valuable forms of money have always been commodities. For thousands of years, the commodity of preference has always been gold.

Gold is much more than "just another commodity," it is the worlds original and only super commodity.

Latest gold coin auctions:

Buy A Canadian Maple Leaf Gold Coin

Canadian Gold Maple Leaf 1/10 oz. 9999 Fine Gold Coin    240.00

Canadian Gold Maple Leaf 1/20 oz. 9999 Fine Gold Coin    115.00

1988 Canadian Maple Leaf 1oz. Fine Gold Coin    1,725.00

2011 1 oz. Gold Canadian Maple Leaf Coin    1,799.00

RARE 1982 $5 Canadian Gold, 1/10 Coin - Canada Maple Leaf - SEALED, PERFECT!!    375.00

2010 1/4OZ CANADIAN .9999 fine GOLD MAPLE LEAF COIN.. IN ORGINAL SHRINK WRAP..    499.99

2010 1/4OZ CANADIAN .9999 fine GOLD MAPLE LEAF COIN.. IN ORGINAL SHRINK WRAP..    499.99

1/10 OZ 3.11 GRAM CANADIAN MAPLE LEAF GOLD COIN - 9999 PURE FINE GOLD 24K NEW    229.95

1982 CANADIAN GOLD MAPLE LEAF 1/10th oz $5 COIN    195.00

1989 4-Coin Gold Canadian Maple Leaf Set (10th Ann) w/Box    4,308.91

2010 Gold Canadian Maple Leaf Coin- 1/20 ounce .9999 pure    100.00

Canadian 2011 SILVER Maple Leaf 1 oz bullion coin with Gold Select collectable    1,200.00

1988 Canadian Maple Leaf 1 oz Gold Coin .9999 Pure    1,875.00

1982 Canadian Maple Leaf 24K fine Gold 1 oz .999 $50 Coin    1,700.00

GOLD Canadian Maple Leaf 1 oz Gold Coin .9999 Pur    1,750.00

Recognized the world over as pure twenty-four karat gold, the Canadian Gold Maple Leaf is a solid investment to add to any gold collection. This coin is very very popular with investors due to it's pure gold nature. Most other coins contain at least small trace amounts of other metals, but the Maple Leaf is 100% pure gold. It's one of the few coins in the world that still has remained so. While this does add to it's attractiveness, the pure gold coin needs to be handled with care. It will scuff, scratch, and bend much easier than the other gold bullion coins. Be careful with your investment, even a small imperfection can lower the value of this coin.

If you take good care of the Maple Leaf though, it will serve you well as a solid investment for years to come. You will always be able to sell this highly prized commodity on many different markets, whether you want to sell online or in person. The best part is that these coins go for a premium over the spot gold price due to how popular and collectible they are. You are not just buying pure gold, you are investing in a rare commodity. How could you go wrong?

Latest gold coin auctions:

Buy American Eagle Gold Coins

2001 1/4 oz. American Eagle .999 Gold Coin ~Uncirculated Condition~    470.00

2010 W Gold $5 American Eagle Proof Coin Unopened Untouched FREE SHIPPING    319.99

2009 $5 1/10oz American Eagle Gold Coin.    202.50

14k Gold Diamond Bezel Lion Pendant with 1/2 oz of .999 American Eagle gold coin    2,891.26

2010 W Gold $5 American Eagle Proof Coin Unopened Untouched FREE SHIPPING    319.99

2010 W Gold $5 American Eagle Proof Coin Unopened Untouched FREE SHIPPING    329.99

1989 Uncirculated American Eagle Five Dollar Gold Coin    200.00

2001 American eagle uncirculated $10 gold coin with a silver dollar    700.00

1988 1/4 oz GOLD, TEN DOLLAR AMERICAN EAGLE COIN    462.55

Lot of 5 coin bezel gold filled rope 1 oz Silver American Eagle with bail    189.75

2011 W NGC MS 70 $50. Gold American Eagle 1oz Brunished Coin    2,695.00

2006 W AMERICAN EAGLE GOLD 4 COIN SET NGC MS70 RARE    3,800.00

1991 $50 American Eagle Gold PROOF Coin, in Case, No Box    2,149.00

1999 $5 AMERICAN EAGLE 1/10 OUNCE GOLD COIN BU    207.50

2002 1/10oz American Eagle Liberty Platinum Coin Pendant in 14k White Gold Bezel    275.00

The American Eagle gold coin is one of the most popular gold coins in all the world. It has a very interesting history. The first American Eagle coins that were minted came from the Philadelphia Mint in the form of $20 gold coins which were designed by James Barton Longacre.

He originally designed two different designs, but one of them is lost in the annuls of history and has never been recovered. The patterns were struck early in 1850, but they still have the date of 1849 on them. Before this time, there was a $10 coin that had the eagle pattern on it, so the new $20 Gold Eagle coin was given the nickname of double eagles.

In 1907, the coin was redesigned again to include the Lady Liberty on one side, and a flying bald eagle on the other. This coin was circulated until the great depression hit in 1933. The great depression hit hard and heavy after WW1, especially in the Federal gold reserves. After a number of failed attempts to bail out the banks where in a similar crisis to today, Roosevelt in 1933 signed the "Gold Confiscation Act" which effectively made it illegal for Americans to own gold. This, and a recall on the gold coins already minted in the US, resulted in much of the gold and the "double eagle" coins being returned to the United States coffers and melted down into larger denomination gold bullion bars.

The only gold that Americans were legally allowed to own was gold coins that had a recognized value to collectors. As a result, the pre-1934 gold double eagle coins are highly prized and sought after by collectors.

In 1985, the US Mint finally released another gold coin that was officially authorized by congress. The new coins were not pure gold, but rather contained trace amounts of silver and copper to help make the coins more durable and scratch resistant. Now, all over the world, the American Eagle Gold Coin is recognized and respected to investors and collectors alike.

If you have something left after investing in an American Eagle Gold Coin, could might also wish to pick up a fine gold wrist watch.

Latest gold coin auctions:

Buy Mexican Gold Centenario Coins

Mexican 50 Peso Gold Coin - Centenario (1.20565 Troy ounces )    2,175.00

1821-1947 PCGS MS67 50 PESO UNCIRCULATED MEXICO GOLD COIN 1.205 OZ BU CENTENARIO    4,695.00

1821-1943 PCGS MS66 50 PESO UNCIRCULATED MEXICO GOLD COIN 1.205 OZ BU CENTENARIO    4,150.00

50 Pesos Gold Mexican Centenario coin    2,625.00

Mexico 1821-1947 50 Pesos Centenario Series CENTENARIO Gold Brilliant Coin    2,935.00

50 coin lot 1921 50 PESOS LIBERTAD CENTENARIO 1.2 oz GOLD Copy GORGEOUS COINs    135.00

100 coin lot 1921 50 PESOS LIBERTAD CENTENARIO 1.2 oz GOLD Copy GORGEOUS COINs    275.00

The beautiful Mexican 50 Pesos Centenario gold coin was minted in order to commemorate the 100th anniversary of Mexico's independence from Spain.

On one side of the Mexican Centenario there is an image of Winged Victory with a laurel wreath and a set of broken chains in her hand. Behind her two famous Mexican volcanoes, Popocatepetl and Iztaccihautl rise in the background. On the lower left is the date 1821 to commemorate the year Mexico gained its independence, the date on the right is the year the coin was minted. On the reverse side there is Mexico's national symbol of an eagle perched atop a cactus with a serpent in its beak.

Along the edge of the coin there is the lettering: INDEPENDENCIA LIBERTAD.

The Mexican gold centenario gold coin is an excellent option for buying gold bullion. Quite often more popular coins like Krugerrand, American Gold Eagles, and Canadian Maple Leafs are notoriously hard to get a hold of. As a result these coins are becoming highly sought after for collectors and investors.

The centenario is 20% larger than the popular 1-oz American Eagle Gold coin. It is contains 37.5 grams (1.2057 oz) of gold in an alloy of 90% gold and 10% copper (21.6 karat). For durability, most gold coins in the Western World have been alloyed with copper.

These coins can be purchased over the counter in most of Mexico at money exchange houses (casas de cambio) or any major or minor banks. The current buy and sell rate is listed on the Banamex website, and is updated daily. The coins can be purchased for little to no premiums without sales tax, and are very attractive additions to any gold investment portfolio. Mexico has also minted a Mexican Silver Centenario which is available to purchase as well.

Latest gold coin auctions: