A gold coin is a coin that is made mostly or entirely of gold. Most gold coins minted since 1800 contain 90 to 92% gold (22 carats), while most of today's gold bullion coins are made of pure gold, such as Britannia, the Canadian maple leaf and the American buffalo. Alloyed gold coins, such as the American Gold Eagle and the South African Krugerrand, usually have 91.7% gold by weight, and the rest are silver and copper. A bullion coin is one that is pure gold (99.9%).
For those looking to convert 401k to Gold IRA, these gold coins are a great option for diversifying their retirement portfolio. These coins are rarely, if ever, minted for circulation, as gold is a soft metal subject to heavy wear and tear. They are manufactured by mints all over the world and are legal tender, but they are manufactured as collectible coins, mainly because of their value in ingots. These are gold coins that HM Revenue & Customs recognizes as included in the exemption for investment gold coins. Numismatists consider 24-carat gold coins, which are 99.9 percent gold, to be the purest gold coins available, and many countries mint and issue them.
While obsolete gold coins are collected primarily for their numismatic value, today bullion gold coins derive their value from metal content (gold) and, as such, some investors consider them a hedge against inflation or a store of value. To mint 22-carat gold coins, 91.67 percent of gold is fused with other metals or alloys, such as silver or copper. In addition, a 22-carat gold coin can contain as much gold as a 24k coin, depending on the size and weight of the coin. In medieval times, gold coins were made with the purest possible gold for both prestige and practical reasons.
For many people, investing in gold coins is a good first step and can generate good profits with gold itself, as well as offering a fascinating insight into a trading world that is rapidly disappearing from the sight of today's trading world. Gold can be re-minted, divided into smaller units, or merged into larger units, such as gold ingots, without destroying its metallic value. This method is widely used in countries around the world because the higher the gold content, the smoother and finer the coin, and combining gold with a stronger metal increases durability. The European Commission annually publishes a list of gold coins that should be treated as investment gold coins in all EU member states.
The purity of gold used in coins and ingots is defined as the percentage or number of “carats” of pure gold used in the finished product. The precious metals experts at First National Bullion, the best place to buy gold in San Diego, offer a brief explanation of the purity of gold in coins and ingots. Most of the world stopped manufacturing gold coins as currency in 1933, when countries abandoned the gold standard due to hoarding during the global economic crisis of the Great Depression.
