Precious metals like gold have been held as a valuable commodity for thousands of years. Gold can be purchased in many forms, such as gold coins, gold bars, or ingots.
Owning physical gold is valued by many investors, and nowadays, investing in gold is more popular than ever, with multiple dealers ready to buy and sell gold online. Read on to learn how to buy gold coins from top companies.
Money Metals Exchange
Established in 2010, Money Metals Exchange offers competitive pricing for precious metal products. Beginner investors can purchase a prepackaged starter portfolio through the company. Additionally, they may also invest in an automatic savings plan that starts at $100 per month.
Customers can utilize the Money Metals Exchange website to shop for coins by category and weight. Then, when the client has decided to make a purchase, the company locks in the gold price for 10 minutes to allow customers to enter their information and payment method. Money Metals Exchange accepts wire transfers, credit or debit cards, checks, money orders, PayPal, and cryptocurrencies. However, the dealer charges a 4% processing fee and limits credit card, debit card, and PayPal purchases to $575.
Shipping is free on all orders over $500. The shipping fee for orders between $150 and $499 is $7.97, and for orders up to $149, the shipping fee is $6.97. The company has a three-day return policy. However, a 5% restocking fee may apply on credit card orders.
Money Metals Exchange offers a buyback program and claims to pay the highest price among its competitors. The dealer also provides vault storage in Delaware and Massachusetts in Class 3 vaults for $96 per year. Moreover, Money Metals Exchange alerts investors when the price of gold reaches its desired number.
Money Metals Exchange has an A+ rating from the Better Business Bureau (BBB).
Founded in 2012, SD Bullion claims a low-price guarantee and offers different precious metals, such as copper, silver, gold, palladium, and platinum. In addition, the company sells unique metal safes. Moreover, SD Bullion claims that they will match the precious metal price if an investor detects a price lower than what the company is offering.
Shipping is free and insured on all orders over $199. Orders below $199 have a flat shipping rate of $9.95.
If a customer fails to pay by the deadline, the order will be subject to a market loss fee in addition to a 5% cancellation fee and any collection expenses incurred by the company.
SD Bullion accepts many payment options, including:
- Credit or debit cards – up to $5,000 and subject to a 4% processing fee
- Checks – up to $20,000
- E-checks – up to $10,000
- Wire transfers – minimum $20,000
- Bitcoin – up to $250,000
- PayPal – subject to 4% processing fee
Customers may return their purchases within three days of delivery. However, consumers are subject to a stocking fee of 5% of the purchase, or $35. The company also offers a buyback program.
Investors can store their precious metals in the S.D. depository vaults in Ohio and Michigan for $9.99 per month.
SD Bullion has an A+ rating from the Better Business Bureau (BBB).
APMEX (American Precious Metals Exchange)
Founded in 2000, AMPEX is the largest online gold dealer in the world. The company has a long track record and the largest selection of precious metals with a wide range of gold and silver bullion and coin products. Additionally, the dealer offers collectible coins from the U.S., Canada, Mexico, Australia, and South Africa.
AMPEX’s prices tend to be higher than other dealers in the industry. However, it offers bulk discounts on bullion and coins. Upon placing the order, the company locks in the gold price for 10 minutes to finalize the purchase. The payment options include credit or debit card, bank wire transfer, paper check, e-check, PayPal, and Bitcoin. PayPal, bank wire transfers, and credit cards take one to three days to clear, whereas checks take a minimum of four days. However, credit cards may qualify for the company’s Quick Ship program. The program provides next-day processing for U.S. orders.
APMEX offers free and insured shipping on orders over $199. The shipping fee on orders below is $9.95. In addition, the dealer offers a seven-day return and refund on all orders. However, customers will be subject to a 10% or $50 restocking fee. APMEX also provides customers with a buyback program.
APMEX can ship and store your precious metals at the Citadel Global Depository Services, one of the world’s most extensive private storage facilities. The minimum monthly fee is $15.
APMEX has an A+ rating with the Better Business Bureau (BBB).
Established in 2011, JM Bullion offers a wide selection of gold, silver, copper, platinum, and palladium coins from U.S. and foreign mints. The company also provides competitive pricing, low shipping costs, and discounts on bulk purchases.
Shipping is free for orders over $199 and includes insurance costs. The shipping fee is $7.99 for orders less than $199. Investors can also choose to have their precious metals shipped to JM Bullion’s storage partner, TDS Vaults, free of charge.
The company offers a five-day return policy. They also have a buyback option on precious metals that cost at least $1,000.
JM Bullion accepts many payment options, including:
- Credit and debit cards – up to $25,000 and subject to 4% processing fee
- Wire transfers – up to $250,000
- ACH transfers – up to $75,000
- PayPal – up to $25,000 and subject to 4% processing fee
- Bitcoin and Ethereum – up to $250,000
JM Bullion has an A+ rating from the Better Business Bureau (BBB).
What Is a Gold Coin?
As the name indicates, a gold coin is a coin that is made predominantly or entirely of gold. Each country has a specific type of gold coin with varying values. For example, the U.S. and Canada produce Maple Leaf coins and Eagles. South Africa produces Krugerrand coins, and the U.K. has the gold sovereign, half-sovereign, and gold Britannia.
Gold coins also have varying qualities. Most gold coins minted in the 1800s are 90% to 92% gold. Most of today’s gold bullion coins are 99.99% pure gold, such as the American Buffalo, Canadian Maple Leaf, and the Britannia. However, you can also find alloyed gold coins, typically 91.7% gold by weight, with the remainder being silver and copper. Some famous alloyed gold coins are the American Gold Eagle and South African Krugerrand.
Compared to other gold products, gold coins have higher premiums and are insured and stored differently. Gold coins must be kept in a dry and cool area, away from indirect and direct sunlight.
Gold Coin History
Gold coins were first minted on the order of King Croesus of Lydia around 550 B.C. and circulated as currency before the introduction of paper money. Gold coins were used for everyday transactions because they were fungible, easily transportable, unreactive, and retained stable value. Once paper money was introduced, currencies still maintained an explicit link to gold under the “Gold Standard.”
Many countries such as the U.S., China, and Australia continue to make legal tender gold coins. However, the coins are used for investment purposes and not meant for circulation.
Types of Gold Coins
Gold coins fall into four major categories: bullion, proof, numismatic, and semi-numismatic. Each type of coin is valued differently and has its distinct advantages and disadvantages from an investment standpoint.
Bullion gold coins are sold at the current market price and are used for investment purposes. They have a recognized weight and fineness. Bullion can also come in the form of silver and gold bars. Additionally, it can also be struck from other precious metals such as platinum and palladium. Examples of gold bullion coins include the U.S. gold Eagle and Canadian gold.
Proof coins are the finest quality of coin produced by the U.S. Mint and are made in relatively low quantities. They are valued above the spot price due to their characteristics. The term “proof” refers to the coin’s finish because they are struck more than once with significant pressure using remarkably polished dyes. Moreover, the coins are hand-polished and cleaned. Hence, the field area of the coin may appear smoother than on other gold coins because of the extra care taken in striking the coin. Proof coins are accompanied by a certificate of authenticity and presented in special packaging. An example of a proof coin would be the American Eagle Gold Proof Coin.
Numismatic coins are collectible or rare coins that tend to be older and have gained value among collectors. In addition to the precious metal content, this type of coin is valued for its artistic merit. Therefore, numismatic coins must be independently certified by third-party services. Examples of numismatic coins include the $20 Saint-Gaudens double eagle coin (1933).
Semi-numismatic coins have the traits of bullion and numismatic coins. Like numismatic coins, semi-numismatic coins are valued for their artistry and scarcity. Additionally, they have the same weight and purity standards as bullion coins. Generally, they are limited mint bullion coins and are attractive to both investors and collectors. Over time, the value of this type of coin could rise above bullion because of its scarcity. Examples of semi-numismatic gold coins include the gold American Eagle.
Why Invest in Gold Coins?
People invest in gold bullion coins for various reasons. The most prominent motives include:
- Hedging against inflation
- Providing an alternative to stock and paper currency
- Portfolio diversification
- Wealth preservation
Gold Coin Pros and Cons
Like any investment, investing in gold coins has its pros and cons.
- Inflation Hedge
The purchasing power of the dollar is likely to decline with time. In such situations, precious metals like gold help investors protect against inflation.
- Portfolio Diversification
Investing in gold is a great way to diversify your portfolio and maintain its value in times of economic depression or stock market crash. Gold is inversely correlated with other assets, meaning gold prices may increase when the cost of other assets decreases.
- Stock Market Alternative
Gold prices tend to rise in response to the fall in stock and bond prices. In this case, investing in gold does wonders to safeguard your assets.
- Wealth Preservation
Gold has successfully preserved wealth throughout generations. So, investing in gold can help you keep your wealth when the dollar weakens. Between 2001 and 2007, the price of gold was in the green. Moreover, from 2016 to 2019, the price of gold increased by 44%.
- No Passive Income
Unlike stocks and bonds, investing in gold doesn’t earn passive income through dividends. Instead, gold coins appreciate when the cost-of-living increases and the economy undergoes a recession.
- High Premium
When buying gold coins, dealers charge a premium above the spot price. This increases the cost of the coin above the actual market price. Moreover, premiums may increase when the demand for gold coins is high.
- Secure Storage Fees
It is necessary to store your gold coins in a secure storage vault to prevent theft or loss. You may keep your gold in your safe box at home for free of charge. Others may prefer storing their precious metals at a reputable gold depository. In either case, you will be paying fees for high-quality safe or depository storage.
- Capital Gains Tax
Precious metals are subject to capital gain tax by the IRS. When you want to sell your gold, any profit you have made is taxable. The current tax rate on long-term capital gains is 28%.
Gold Coin FAQ
What is a Gold Coin Worth Today?
You can calculate the worth of a gold coin by multiplying its pure gold content by the current gold spot price. The dealer, shipping, insurance, and payment type may also impact the gold coin’s final cost.
Are Gold Coins a Good Investment?
Gold coin investment is an excellent way to diversify your portfolio. Moreover, if other investment assets fall during a financial crisis, gold coins can increase in value, serving as a hedge against inflation.
Investing in numismatic coins is also a good option because their value is dictated more by their rarity and trends in collecting rather than the value or content of the metal from which they are made. These coins trade among collectors based on market expectations as to the coin’s future value.
Do Banks Sell Gold Coins?
You may find a few financial institutions in the U.S. that sell gold bullion coins.
Are Gold Coins 24 karat?
Not all gold coins are 24-karat. Karat is a unit of measurement that determines the purity of gold. The higher the number, the purer the gold, and the lower the number, the more alloyed metals are combined with the gold. All bullion coins are 24-karat due to the 99.99% purity standards. Alloyed gold coins such as the American Gold Eagle coin are 22-karat because it is around 92.67% gold, with the remaining 8.33% composed of silver and copper.
Are Gold Coins Pure Gold?
Most of today’s gold bullion coins are 99.99% pure gold, such as the American gold Buffalo and U.K. Britannia. However, you may also find other gold bullion coins, such as the African Krugerrand, with a 91.67% gold content.
What is Better, Gold Coins or Bars?
Gold is considered a solid investment no matter its shape. However, some people may prefer to invest in gold coins because of their popularity, design, and unique history. Others may choose gold bars because they get more for the value of their money. Gold coins carry slightly higher premiums over the spot price than gold bars because of the extra minting costs and their commemorative nature.
What is the Cheapest Way to Buy Gold?
Purchasing small gold bars is the cheapest way to buy gold because they carry lower premiums. Moreover, Hong Kong currently has the lowest premiums on gold assets.
What’s the Difference Between Gold Bullion Coins and Numismatic Gold Coins?
Gold bullion coins have a certain standard amount of gold. It has a fineness of 99.99% and weighs one troy ounce. Other types of gold coins, such as numismatic gold coins, vary in weight and value. They may have lower gold content but be worth more than standard bullion coins because of their history and rareness.
Is Buying Gold Online Safe?
Before entering your credit card digits, make sure you are purchasing gold from a reputable dealer. The best online gold companies use Secure Sockets Layer (SSL) encryption and are Payment Card Industry (PCI) compliant to protect the user.
How to Choose a Reputable Gold Dealer?
To verify a dealer’s reputability, visit consumer protection websites such as the Better Business Bureau (BBB) and the Business Consumer Alliance (BCI) to check their ratings and customer reviews.
How to Buy Gold Online?
Like purchasing any other product online, navigate through the website and compare products by category. When you find the product you want, add it to your card, enter the quantity you want and move on to checkout.
Upon checkout, most dealers lock in your price for a short period while filling out your personal information and choosing your payment method. Once you successfully place your order, you will receive an email confirmation with ongoing shipping notifications.
If you have any queries, you can always reach out to customer support via live chat or email.
How Can I Get My Gold Coin Certified?
You can get your gold coin certified by submitting it to a reputable grading company. Reputable grading companies include the Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC).
Can You Store Gold at Home?
Except in the case of Gold IRAs, you can store your gold at home. However, make sure to store appropriately in a private safe to protect against damages or theft. Also, make sure that your homeowner’s insurance covers potential loss or damage.
Is It Legal to Own Gold in Mass Quantities?
Yes. There are no legal restrictions on how much gold one can or cannot own. Previously, it was illegal to own gold bullion in the U.S. However, all restrictions were lifted in 1975.
What are the Most Expensive U.S. Coins?
The most expensive U.S. coins are:
- Saint-Gaudens Double Eagle $20 Gold Coin (1933) – sold for $18.8 million
- Flowing Hair Dollar (1794) – sold for $10 million
- Brasher Doubloon (1787) – sold for $9.36 million
- Eagle $10 Gold Coin (1804) – sold for $5.2 million
- Silver Dollar (1804) – sold for $7.68 million
- Half Eagle $5 Gold Coin (1822) – sold for $8.4 million
- Brasher Doubloon (1787) – sold for $9.36 million