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Investment coins: gold ounce

By rcintas on the

Along the first quarter of 2020 we are experiencing a strong upward tendency on the price of gold. The investors are putting their confidence in the yellow metal in detriment of other more traditional investment markets as the stock market or bonds.

In order to invest in gold, we have different options. Maybe one of the most known options is  bullion coins. In this article, we are going to present another very reliable alternative that not everybody knows: historic coins minted to circulate, but that in the numismatic and collectors market behave as bullions. This is due to the large number of these coins in existence and low interest from the more pure collectors, since the offer of this coins surpases the demand.

What gold coins are suitable to invest in precious metal? 

We are going to focus on coins from the second half of the XIX and the XX centuries. Along these years many countries lived eras of sustained growth, what brought them to have the ability to mint large quantities of gold so it can circulate among the population.

These gold coins have the big advantage that besides that they were minted as a currency, their main usage was to accumulate savings among the families. In those days, if someone had 25 gold pesetas and a 25 pesetas bill, obviously when buying any good it was preferable to pay with the bill and keep the gold at home. This way we find these coins minted in large quantities and generally with a low circulation. 

These are some of the examples of coins that due to their abundance they behave in the market like bullion gold. Almost all of them can buy purchased in the numismatic market at the price of the weight of the metal with which they are minted. They also have the advantage that normally, besides some of them have a small increment over the price of the metal, this increment is usually constant. This means, if a coin can be purchased at its weight + 5% it will keep having the price of its weight + 5%, either the gold’s price is 30€/g or 50€/g.

Historic coins that behave like investment gold:

The list is not exhaustive, there are much more options, almost all the countries have minted gold at some points. If you wanna complete it, you can look at a Krause catalogue and find information of all the circulating coins from a certain coin, its weight, its purity and its minting code.

For almost all the gold minted coins it is used a low of the metal of .900 (21.7k) or .917 (22k). This is due to the fact that the coins minted in 24k gold are very soft and get damaged very easily. Therefore the coins minted in order to be used as circulating currency have an extra adding of silver or copper so it can increase its durability.

Germany

Belgium

Chile

Cuba

United States

France

United Kingdom

Hungary

Iran

Italy

Mexico

Portugal

Dominican Republic

Russia

Switzerland

Turkey

Venezuela

In which sizes are the gold coins available?

As you can see, besides the fact that every country minted coins with its own law and weight, more or less all the investment gold coins can be classified by the ounce pattern. This system worked during many centuries and there are still reminiscences in the contemporary age. We can establish a basic classification where almost all the coins can fit:

  • Shield size: 3.35g
  • Doubloon Size: 6.70g
  • Half an ounce size: approx. 13.40g
  • Ounce size: approx: 26.80g

Another pattern used in the gold coins market is by following the british sovereign. These coins weigh approximately 8g. A bit more of the size of the spanish doubloons, but not enough to get to the weight of half ounces.

El otro patrón utilizado en las monedas de oro es el marcado por el soberano británico. Estas monedas pesan aproximadamente 8g. Un poco más del tamaño de los doblones españoles, pero no lo suficiente para llegar al peso de las medias onzas.

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