How to Invest in Gold Bullion Coins

Gold bullion coins are small coins minted by the U.S. -- and other -- governments. The coins are guaranteed by the issuing government. They're not used as currency that you can use to buy goods and services. Instead, these coins are collector's items. They're usually made of pure, or almost pure, gold. Buying gold coins may also provide a hedge against inflation. This is true when the money supply expands significantly when compared to the productive output of the country.

Things You'll Need

• Internet connection, Telephone, Funds in a Checking or Money Market Account

Instructions

1. Contact your bank or brokerage firm. Alternatively, you may purchase gold coins through a gold bullion dealer or directly from the U.S. mint. Many brokerages and banks sell gold bullion coins.

2. Get quotes for bullion coins. Not all institutions sell the coins for the same price. Some places may charge a premium for nice packaging or some other addition, which you may or may not need.

3. Withdraw money from your bank account to pay for the bullion.

4. Get a safe or safe deposit box. A safe deposit box will keep your bullion safe at a bank, but the bank will charge you for this service. A safe at home also provides security, but the bullion may be stolen from you if it's not properly secured.

Tips & Warnings

• The most popular bullion coins to invest in are the American Eagles, Canadian Maple Leafs, French Francs, South Afrian Krugerrands, Austrian Philharmonics, and Chinese Pandas.

• A bullion bar will seemingly be the least expensive way to purchase gold but beware of the administrative hassles involved with liquidating a bullion bar. The bars require costly testing to determine if they are actually made of gold before a brokerage firm will typically buy it back.

References

• "Practicing Financial Planning for Professionals (Practitioners' Edition), 10th Edition"; Sid Mittra, Anandi P. Sahu, Robert A Crane; 2007
• U.S. Mint: American Eagle Gold Bullion Coins

Resources

• United States Mint