Nov 2013


Nov 2013

Three of the best gold coins for investment

By StoneX Bullion

Gold is rarely a poor investment; although prices may fluctuate in tandem with the global economic landscape it remains a highly desirable asset to hold. One of the most accessible ways to invest in gold is in the form of bullion, particularly gold coins. This type of asset allows relatively small units of investment, providing flexibility in both buying and selling. However, buying numismatic gold coins and those primarily designed for investment purposes are two very different procedures. For the purposes of this article, we are focussing on the latter. Even ruling out numismatic coins, there is still an almost overwhelming choice to pick from so here's five of the best which you may want to consider.

1) Turkish Republic

Not an obvious choice for everyone but Turkey has not only produced more gold coins than any other nation in the last 10 years but it also boasts the Grand Bazaar, one of the largest covered markets in the world much of which deals in the buying or selling of gold and/or jewellery. The Turkish gold coin is known as the Republic, with two main sub-types: the Meskuk and the Ziynet. The Ziynet is a decorative coin and it is this which is particularly attractive with Turks buying them for most occasions as a gift including christenings, births, marriages, circumcisions, military service and graduations. The Ziynet even comes with a hook on the edge so it can be easily fastened to clothes during celebrations. There is a particularly high degree of liquidity around the Republic with demand not just from Turkey but also from the Middle East. To sweeten the deal further, Turkey has a very generous relationship with gold, with no taxes or restrictions and viewing it as true money. You can even open a gold checking account! The only particular disadvantage is that the Republic is minted in a different type of weight to most other modern gold coins, making it difficult to compare the asset.

2) Chinese Panda

Perhaps better known than the Republic, the China Panda is still relatively unknown outside the world of gold collecting. The Chinese first entered into the world of modern gold coin production in 1982 with the Panda, a 24k coin in 1/10 oz., ¼ oz., ½ oz., and 1 oz. denominations. The following year 1/20 oz. and 1g denominations were added; the first coins of these weights in the world of gold.The Chinese Panda coins are very well known and collectedThe Panda is rather unique being both an investment and collectible coin at the same time. Although its high gold content makes it a very tangible asset, the fact it also features a different panda design on the reverse of the coin every year makes it highly attractive to collectors too. China has declined to announce how much gold it is holding but with hopes of establishing itself as a global reserve currency, backed by the precious commodity, the Panda could increase in investment value even further in the future.

3) Canadian Maple Leaf

One of the earlier gold coins to appear in circulation, the Maple Leaf was first produced in 1979 after the country recognised the success of the famous South African Krugerrand. The Maple Leaf produced by the Canadian Royal Mint was the first coin to boast 24k bullion content, with 99.9% purity. This content was enhanced even further in 1982 when it was upped to 99.99% and then once more in 1998 when the gold was increased to 99.999%.The much loved Maple Leaf gold coin seriesTo this day it remains the most popular 24k gold coin globally with around 40 million believed to be in circulation. The most popular Maple Leaf is currently the 1oz 99.99% coin, but the later 99.999% 1 oz version is also one of the most common choices for investment too. Other top picks include the ½ oz., ¼ oz., 1/10 oz. and 1/20 oz.ConclusionThe above three coins are ones which are maybe not quite as obvious as others you may have heard of such as the British Sovereign, the South African Krugerrand or the American Eagle, all of which also make excellent investment coins. However the three coins listed above are amongst the top produced gold coins in the last 10 years and all have recorded an upsurge in their value, outstripping many other coins of similar value.