Gold bullion coins have become a popular investment especially in times of global and national financial uncertainties. Investing in gold bullion coins is the easiest method to acquire gold. Since gold has been increasing in value in the past decade, many investors see gold bullion coins as a great investment especially since they have strong liquidity.
Unlike standard currency, the value of gold coins is not based on its currency value but its weight in gold or its melt value.
Denominations
The Royal Canadian Mint issues Canadian Gold Maple leaf coins every year since 1979. It is one of the purest gold coins in existence today (containing .9999 millesimal fineness or 24 carats). The Canadian Gold Maple Leaf is available in 1-oz ($50 face value) and fractional sizes of ½ oz ($20), ¼ oz ($10), 1/10 oz ($5), and 1/20 oz ($1).
Guide for Buyers
If you’re in the market for some Canadian Gold Maple Leaf Coins, whether as an investor or collector, the best way to protect yourself against unfair gold dealers is to keep yourself informed especially about current market prices for gold. While there are many reputable sellers, it can be difficult to pinpoint which ones are reputable and which ones aren’t especially for the first time gold bullion investor. This is why it is recommended that you do your own research to ensure that you get what are paying for and at a fair price. Below are some tips to help buyers:
Know the Price for Gold Bullion Coins
Like all gold bullion coins, Canadian gold maple leaf coins are usually sold higher than spot gold prices (usually between 3% to 15% more than the spot price of gold). This is because gold bullion coins are minted and as such, there is a fabrication fee that is charged to the buyer for the coins. Spot gold prices only refer to the unfabricated price of gold so you should expect to pay more for gold bullion coins.
In addition to the fabrication fee, the price of Canadian gold maple leaf coins will also depend on the size of the coin and the amount of coins you are buying. You can easily get information online about the current trading value of popular gold bullion coins like the Canadian gold maple leaf coin.
Shop Around
As with any other expensive purchase, it’s always a good idea to shop around for different sources when buying Canadian gold maple leaf coins. There are many reputable precious metal dealers out there but they won’t always offer the same prices. Like foreign currency, buying gold bullion coins is more expensive than selling, as dealers often add a small premium over the spot value of gold when selling. Comparing prices from several dealers will not only give you an idea of the average pricing but will also allow you to buy gold coins at the best possible price.
Collector Coins
While most Canadian gold maple leaf coins in circulation are regular bullion coins, there are special editions and rare coins that are meant for collectors so you should expect to pay an added premium for their rarity and historical value. Buyers should know the difference between regular bullion coins and rare, special edition gold coins. Today, the market for collector coins is a lot bigger than it used to be so if you have access to a special edition coin, it’s also worth considering purchasing one.
Terms and Delivery
When buying Canadian gold maple leaf coins from any dealer, make sure that you know the terms and delivery time. Find out how long you should be expecting the delivery of the coins to you and if you should expect any delays. Reputable sellers must disclose all relevant information regarding your purchase before closing the deal. Some people, especially in cases where a large quantity of gold bullion coins is involved, may opt to have their coins stored at a depository. Buyers should be wary of dealers that offer storage without delivery. It is also not recommended to have your bullion coins stored by the dealer due to the obvious risks involved. Ideally, if you need storage, it is best if you get your own storage at a reputable depository for gold coins.
You should also make sure that the coins are delivered to you in a protective packaging to ensure that you’ll receive it in mint condition. Since Canadian gold maple leaf coins are very pure, they are susceptible to scratching and damages while in transit and as such, should always be transported in a protective casing or plastic.
The Canadian Gold Maple Leaf is one of the most popular gold coins for investors and due to its purity; it is also one of the most profitable. Investing in Canadian gold maple leaf coins is highly recommended especially for those who really want to invest in gold. To safeguard yourself and your investment, make sure to only deal with reputable dealers and to do your own research beforehand especially for first-time buyers.