What Are the Best Gold Coins to Buy?

Investing in gold coins is a time-honored way to preserve one's wealth, hedge against inflation, and diversify your investment portfolio. With a plethora of options available from over a dozen sovereign mints across the world, choosing the best gold coins to buy can prove both exciting and overwhelming. In this article, we'll explore some of the most popular gold coins, including products from the U.S. Mint and the Royal Canadian Mint, and discuss why opting for the coin of the realm—coins local to your country—might be the smartest choice.

1. American Gold Eagle

The American Gold Eagle is the official gold bullion coin of the United States, first released by the U.S. Mint in 1986. Crafted from 22-karat gold, it features Augustus Saint-Gaudens' iconic depiction of Lady Liberty on the obverse and a family of eagles on the reverse for the Type 1 design (through early 2021) and an Eagle-eyed, close-up profile shot on the Type 2 design, since late 2021. Available in denominations of 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz, it's a favorite among investors and collectors alike due to its liquidity and universal recognition.

2. American Gold Buffalo

Introduced in 2006, the American Gold Buffalo is the U.S. Mint's first 24-karat gold bullion coin. With a design inspired by the classic Buffalo Nickel, it showcases the profile of a Native American chieftain on the obverse and an American bison on the reverse. Its 99.99% gold purity makes it highly sought after by those looking for the purest gold investment.

3. Canadian Gold Maple Leaf

The Canadian Gold Maple Leaf, produced by the Royal Canadian Mint, is renowned for its purity and advanced security features. First issued in 1979, this coin is made from .9999 fine gold and features the iconic maple leaf design. Anti-counterfeiting measures like radial lines and a micro-engraved maple leaf laser mark enhance its appeal to investors worldwide.

4. South African Krugerrand

The South African Gold Krugerrand, introduced in 1967 by the South African Mint, was the first gold bullion coin intended for private ownership. Made from 22-karat gold, it features Paul Kruger's portrait on the obverse and a springbok antelope on the reverse. Its historical significance and widespread recognition make it a staple in many investment portfolios.

5. Austrian Gold Philharmonic

Minted by the Austrian Mint, the Gold Philharmonic coin celebrates Austria's rich musical heritage. First released in 1989, it is made from .9999 fine gold and features a design showcasing orchestral instruments and the Great Organ of Vienna's Golden Hall. It's the only European legal tender gold coin with a face value in euros.

While international gold coins offer excellent investment opportunities, purchasing gold coins local to your country or nation—the coin of the realm—provides unique advantages:

1. Recognizability and Trust

Locally produced gold coins are generally more popular and, therefore, more likely to be recognized and trusted by dealers, collectors, and buyers within your country. Popularity and liquidity go hand in hand in this asset class, as dealers are able to find the next buyer quickly after a buyback is made. This familiarity with the coin of the realm can make the buying and selling process smoother and more straightforward.

2. Ease of Authentication

Since local coins are widely circulated and well-known, it's easier for both buyers and sellers to identify and authenticate them. This reduces the risk of counterfeit coins and increases the confidence and speed of transactions.

3. Legal Tender Status

Gold coins issued by your country's official mint often hold legal tender status. For instance, the American Gold Eagle has a face value of $50 (USD) while the Austrian Gold Philharmonic carries a face value of €100 (Euro). Interestingly, the Gold Krugerrand does not have a face value, but it is still considered legal tender by the South African government. While their face value is symbolic compared to their gold content value, this status can offer certain legal protections and tax benefits.

4. Cultural and Historical Significance

Investing in local gold coins allows you to own a piece of your nation's heritage. These coins often feature designs that reflect a country's culture, history, and values, adding a layer of personal significance to your investment.

When it comes to investing in gold coins, there's no one-size-fits-all answer. The best gold coin to buy depends on your individual investment goals, preferences, and circumstances. While renowned coins like the American Gold Eagle and the Canadian Gold Maple Leaf are excellent choices due to their purity and global recognition, opting for the coin of the realm—gold coins local to your country—can offer practical benefits that shouldn't be overlooked.

By choosing local coins, you enhance the ease of transactions within your market, reduce potential costs, and invest in assets that are deeply connected to your nation's identity. As always, conducting thorough research or consulting with a financial advisor is crucial to ensure that your gold investment aligns with your overall financial strategy.

Happy investing!