You can hardly go wrong by investing in gold. It has been proven time and again to be a safe haven investment, and an effective hedge against economic uncertainties. Whether you plan to hold gold assets for the long term, or simply to tide you over a period of uncertainty, you can rely on your physical gold assets to deliver the results you want.

The best way to invest in gold is by buying gold bullion, which commonly comes in the form of coins and bars. Buying gold coins is the more convenient and practical option, as coins are easier to liquidate than bars. This is especially true if you’re a beginner investor or plan to hold physical gold only in the short term.

Gold coin categories

When buying gold coins, you can choose between gold bullion coins and numismatic gold coins.

Gold bullion coins generally follow the current market price, or spot price, of gold, plus a certain premium.

Numismatic coins also follow the spot price of gold, but their value is largely dictated by their collectability. They may carry a premium over the spot price, but they could also carry a discount, depending on their collectible value.

If you’re a beginner in buying gold coins, it’s best to stick to gold bullion coins. Investing in numismatic coins is very similar to investing in fine art. You need years of experience and in-depth knowledge of the trade to be successful at it.

Buying gold bullion coins

In buying gold coins, the safest options are those produced by popular national mints, such as the U.S. Mint, the Royal Canadian Mint, the Perth Mint, and the South African Mint. These coins’ gold content and purity are guaranteed by the government of their origin country.

Some of the most famous coins from these mints include:

• The American Gold Eagle and American Gold Buffalo
• The Canadian Gold Maple Leaf coin, Gold Polar Bear, Arctic Fox, and Polar Bear & Cub
• The Australian Kookaburra and Kangaroo
• The South African Krugerrand

In buying gold coins, keep in mind that the price is determined by the coin’s gold content and the spot price of gold, plus a premium that typically includes costs for the following:

• manufacturing
• packaging
• security and storage
• administrative
• shipping

Dealers may offer different prices, which are easy to compare against each other. When buying gold coins, it’s wise to go with the most competitive price, particularly for coins struck by national mints. Also, choose one-ounce coins over their smaller countertypes, as these bigger coins carry a lower premium per ounce.

Buying numismatic coins

As previously mentioned, investing in numismatic or collectible coins is not for everyone. If you’re interested, there are coins produced by the U.S. Mint, such as American Gold Eagles and Gold Buffalos, that also have numismatic value. This is stated in the Gold Bullion Act of 1985, which authorized the minting of these coins.

There are two types of numismatic coins:

• New numismatic coins – These are annual collectors’ coins produced by national mints. They include American Gold Eagles and other official coins that come in a new edition every year. Other coins in this category commemorate special events, people and places, such as the $5 and $10 BU Proof Indian Gold commemoratives.

• Antique coins – These typically have historic value, which impact their price. Rarity and the coins’ condition also contribute to their collectability and value. Popular antique coins include the Pre-1933 St. Gauden and the $5 BU Proof Gold Commemorative Liberty.