Gold has long been a hedge against inflation and a way to diversify a portfolio. However, the fact that gold coins are also beautiful is yet another reason that they are still today attracting attention. Not only are the majority of these coins highly attractive – but they are also highly collectible. This collectibility (and the value of gold) are two of the reasons that they are so sought after.
However, to return to the sheer investment value of gold coins, it can be challenging to paint these valuable coins with a broad brush – almost every one of the coins is influenced by a variety of factors, including purity and rarity. However – there is wide agreement that (in most countries) investment in gold coins provides returns that beat the inflation rate. It is however true that investing in gold can be risky – if one does not have the patience for this sort of investment. As with most investments gold coins are subject to both bull and bear markets. But they reward both savvy investment decisions and a long-term outlook.
Take just one type of these investment quality gold coins (and there are many others that are perennial favorites). If an investor has put aside cash to invest in South African Krugerrand in the year 2000 it would have been possible (with the aforementioned patience) to have enjoyed returns of around 50% per annum. Of course, this must take into account the depreciation in the value of the Rand over this period.
However, the Krugerrand is still one of the most traded gold coins in the world. However – there are a large number of other choices available to the investor/collector, with most of them issued by some of the most reputable mints in the world. Of course, the value of these coins is not predicated on their gold content alone. Many are limited editions – and the purity of between 91.67% (for 22-carat coins) and 99.9% for 24-carat gold coins allows for an even wider choice.
There is also the fact that many of the collectible gold coins issued by mints across the world are available in various sizes and denominations (although the 1 troy ounce versions are the most sought after). There are also versions that are available in strictly limited numbers that are issued for special events.
Some of the most popular of these coins are the American Gold Eagle, the Canadian Gold Maple Leaf, the beautiful Australian Kangaroo Gold, the gold Britannia coin, and the gold Chinese Panda. However, the list is far more extensive than those mentioned here.
Collectible gold coins are regarded by savvy investors as a safe haven – and many investment advisors are of the opinion that a significant portion of any investment portfolio should be held in gold-related investments (be it bullion or mining and related shares). Gold coins are another welcome addition to any diversified portfolio. They provide simple joy when viewed and their value continues to climb over the medium to long term. The mere act of finding that rare coin – or limited edition makes collecting these items of great beauty and value an even more attractive proposition.