While ETFs like SLV and GLD may help balance out your stock portfolio, the crypto markets continue to raise anxiety for investors, tucking away some gold coins in a discrete location can give you financial security and peace of mind. Gold Coins are an investment that you want to hold and it’s a wise idea to have a stack.
A key concept to understand is that gold ownership is a store of wealth. When you buy coins minted of precious metals you are transferring your hard-earned fiat currency into a physical asset. The value of gold is driven by the commodities markets, central bank buying and its innovative use by industry.
Which Gold Coin is Ideal for Stacking?
All major gold bullion coins that are manufacturered by government backed mints are widely recognized worldwide. While the full one troy ounce of gold coin is the most popular, various fractional ounce sizes are available for investors of all budgets.
The allure and luster of pure 24k gold is part of what draws investors to some coins. They prefer the beauty, color and the way pure gold reflects light.
Other investors have a preference for stacking coins that are more practical and made for the rigors of circulating in the economy. Modern and vintage 22k gold coins contain an alloy that incorporates other metals for durability and scratch resistance when handling.
The prestigious 1 ounce Gold American Buffalo from the US Mint is one of the best selling pure gold coins. This coin is highly revered for the immaculate detail in the design. However, the Gold Maple Leaf, Britannia and a variety of gold coins from the Perth Mint are also the same purity and often available for a significantly lower price from one or more online bullion dealers for the same amount of gold.
Modern Gold Coins
The US Mint produces millions of gold coins each year in the Eagle and Buffalo series’ plus a variety of commemorative issues that highlight and celebrate American values and culture.
Various laws passed by Congress require that the US Mint to charge wholesalers a premium over spot price to cover the costs of manufacturing, marketing, sales and distribution of newly minted coins. The pandemic lockdowns caused a chain reaction that led to increasing costs along the entire supply chain from mine to mint.
Sovereign owned mints, such as those in Canada, Europe and Asia also have large-scale operations for producing coins for investment. Lower foreign manufacturing costs combined with other market-driving factors put the prices of these legal tender coins at a lower premium over spot than those produced domestically.
Even though they have a nominal face value in a foreign currency, most are also eligible for inclusion in a precious metals IRA based on their legal-tender status and gold purity.
Vintage Gold Coins
Long before the invention of paper money and fiat, gold has a long traditional history as money that has proven to stand the test of time. Pure gold is very soft and easily damaged during circulation. Many vintage gold coins are minted from a 22k gold alloy, which blends other metals such as copper and silver to provide rigidness.
Gold coins were the acceptable currency for everyday spending, making major purchases and for international trade.
The lust for gold and wealth was the primary driver of Colonial expansion during the 18th and early 19th centuries.
European kings and monarchs built mints in far away places to create coins from their newly acquired riches. The Spanish were the first to establish a mint in North America in 1535 to melt down Aztec treasures into Spanish gold escudos coins.
The British established a branch of the Royal Mint in Western Australia to mint Gold Sovereign coins that later become the Perth Mint.
For hundreds of years, coins such as British Gold Sovereigns, the 20 francs and other European gold coins like the Gold Corona were minted with qualities that made them ideal for circulation and to withstand generations.
Gold is Insurance Against CBDC
The record amounts of stockpiling by central banks is recent years is a top indication that there is a global economic shift towards a gold-backed currency for international trade.
Many countries, particularly in the Middle East, Africa and Asia have been ramping up their gold buying in preparation for the introduction of a BRICS+ commodity-based basket currency.
Gold is a unique physical asset that is easily exchangeable into cash. Having a portion of your savings outside of the traditional banking system that is controlled by the government and central banks gives you more control of your money and your future.
The Federal Reserve and White House have both announced plans to roll out a CBDC. Many are correct in their beliefs that the government will attempt to force the use of a programmable currency in the coming years as the state of the economy worsens.
Owning even a small investment in gold coins can provide peace of mind and financial security that is expected to come with a collapse of our current financial system in the coming years.
Practical Gold Preps
It’s growing harder for families to maintain a budget when the cost of basic groceries and gas to fill up the car increases with each passing week.
Being able to set aside enough cash savings to cover a few months of expenses is nearly impossible in the current climate of skyrocketing inflation, alongside continually rising interest rates and massive layoffs in the job market.
The importance of having a stable, trusted and reliable store of value has never been more critical than it is today.
