Bullion coins have existed in various forms for literally thousands of years. For centuries, gold has been considered one of the most valuable bullion in the world, and its prices have consistently remained high. There is also no doubt that gold on Earth is depleting, and this could lead to further price increases in the long term. It is therefore no wonder that more and more investors are choosing to place their financial resources in physical gold, opting for gold bullion coins.
Physical investment gold – investment coins
Voltaire once said „paper money eventually returns to its intrinsic value – zero”. Looking at the growing amount of turbulence in the financial markets, it is safe to say that the current monetary system based on fiat money is not able to meet the demands of the modern world. Regardless of which way you look at the subject, you will eventually come to the same conclusion – fiat money will always be just a piece of paper covered with pigment. So how can you protect your capital against inflation, the consequences of various financial crises and other factors that make your money lose value? One answer is to invest in gold bullion coins.
What are bullion coins?
Investment coins are one of the first associations that come to mind when we think of investing in gold. However, few people realize the origin of their name. The term gold bullion coins has its origin in the French word “bullion” and comes from bulionism, a term associated with the early stage of mercantilism, which originated and developed in Europe in the late 15th and early 16th centuries.
Gold has always been synonymous with wealth and has been present in culture since the dawn of time. After all, gold was the focus of prospectors who were willing to travel the entire world in search of bullion deposits. Gold was also one of the gifts given by the three kings to the baby Jesus, as well as one of the attributes of royal power. Therefore, the emergence of bullionism can be considered a natural consequence of the appreciation of the role of gold in human life – the proponents of the trend believed that the possession of precious metals facilitates the development of trade and increases monetary income.
Brief history of bullion coins
The beginning of the development of the gold investment market can be somehow identified with the year 1967, when the first ever bullion coin was issued – South African Krugerrand. What is more, the first issue occurred four years before the gold standard was completely abandoned.
Gold bullion coins, nowadays also referred to as investment coins, are distinguished by a number of factors, which every year attract more and more investors. The increase in popularity of investment coins, apart from their investment benefits, is due to their aesthetic values. Investment coins, made mostly of the highest purity gold, are the answer to the needs of even the most demanding investors – they delight with their precision, attention to detail, extraordinary decorations and elegance.
What to consider before You buy gold bullion coins
As interest in the gold investment market grows, there are more and more products to choose from. The question is, what an investor should know, who has not been interested in gold investment so far? The best solution would be to pay attention only to those bullion coins which are produced by the world’s biggest mints. The choice of a mint boasting the LBMA accreditation is somehow a guarantee of the highest quality and recognition in every corner of the globe.
However, taking into consideration that the world’s mints do not sell investment coins to individual investors, you need to find a trusted gold dealer. There are many bullion dealers on the market but not all of them can boast of direct contacts with the biggest gold producers. Therefore, Tavex appears to be the best choice – as one of the few in Poland we cooperate with Perth Mint, PAMP, Valcambi and Münze Österreich . This allows us to guarantee our customers not only the best price per gram of gold, but also delivery within 24 hours. All the bullion coins we offer for sale are physically located in our safes.
Which bullion coin should I choose?
Now that we know where to buy gold investment coins let’s move on to the key issue – which coin or coins to invest in. As with choosing a manufacturer, recognition is important when it comes to choosing a particular “bullion” coin. Some of the best known gold investment coinsinclude: Australian Kangaroo, Austrian Philharmonic, Canadian Maple Leaf, South African Krugerrand and American Eagle. If necessary, all of these coins can be easily sold no matter where you are at the time – they are renowned worldwide. What is more, each was produced by one of the LBMA – listed mints. In summary, investing in any of the above investment coins will be an excellent choice.
Taking into consideration that the prices of gold bullion coins oscillate within similar limits, the choice of one is based primarily on the investor’s taste and individual preferences.Gold investment coins differ in, among others: alloy composition (admixtures of other metals, which are to guarantee the coin’s resistance to adverse external factors), design and producer.
The major bullion coins
The South African Krugerrand and American Gold Eagle stand out from the other aforementioned locational coins by their purity – in contrast to the others, both coins were made of gold of 916 purity. What does this mean in practice? In the one-ounce Krugerrand, apart from pure gold we will find a small admixture of copper, which makes the coin weigh more than one ounce (by about 2.8 grams). The situation is similar in the case of the American Gold Eagle, in which in addition to an ounce of gold we will find a mixture of silver and copper.
At this point, it is worth expanding a bit on the topic of how the content of other metals affects a particular investment coin. As it is commonly known, gold is very soft and malleable, which makes it easily damaged. The admixture of silver and copper increases the resistance to unfavorable external factors. This does not mean, however, that other investment coins are not worth attention – in most cases, immediately after purchase, bullion coins are placed in safes or other places designed to ensure the highest possible level of security. Additional protection is provided by the mint cap, in which producers place bullion coins before sending them to official distributors.
Best place to buy bullion coins
Tavex offers all of the above mentioned investment coins in various sizes. However, these are not the only investment coins that you will find on our website – we encourage you to familiarize yourself with our full offer. In this way you will be able to see for yourself that gold bullion coins are an ideal investment for every pocket. Everything indicates that the gold investment market will surprise us more than once.
Trust us! We are the largest precious metals dealer in Northern Europe and one of the leading players in Central as well as Southeastern Europe. Our group has existed for over 30 years and has nearly 35 exclusive branches worldwide.
In Poland you will find us in Warsaw, Katowice and Gdynia. However, you can invest without leaving your home! All you need to do is to make a purchase through the online store you are in right now – we only sell products that are physically in stock, and we send orders within 24 hours:
– by Pocztex or Fedex courier to the indicated address (e.g. home),
– to a selected pick-up point (Żabka, Ruch and others),
– by priority registered mail,
as well as we offer free of charge personal collection in a selected branch. See you in Tavex!
Investment decisions should be made considering different factors, including the latest market data. Please make an appointment for a free consultation – over the Internet, by phone or in person at our office.
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