Gold American Eagle Coins are produced by the US mint. They are an extremely liquid investment since they are backed by the US mint for weight, and content. Their value is tied directly to the price of gold, with a small premium (roughly 5-7%) for the minting cost and the dealer commission. All gold American eagle coins are made with 22-karat gold, i.e. 91.67% pure gold, but the coin weights are adjusted so that you're receiving the amount of pure gold advertised, e.g. a one ounce coin actually weighs 1.0909 ounces and has one full ounce of pure gold. Gold American eagle coins have become an extremely popular investment due to current economic uncertainties. Buying these gold coins can be done by following a few easy steps.
Determine whether you will buy bullion edition or proof edition gold American Eagle coins. The standard investor purchase is the bullion grade coins. They have no collector value. The proof coins are made with a higher quality mint process and finish. They are made in smaller quantities than the bullion coins. At this point, proof sets have no record of adding value over time.
Determine the size of gold American Eagle coins you will buy. They are minted in 1/10, 1/4, 1/2, and 1-ounce sizes. The 1-ounce coins have the lowest spread between buy and sell prices.
Determine where to purchase your Gold American Eagle coins. The US mint does not sell these coins directly. You will have to choose between a local precious metal dealer, an online dealer, or an online auction. If you use local dealers, you won't have to worry about your coins being lost or stolen in the course of shipping. Pricing or lack of local precious metals dealers may push you toward the online option. In any case, be sure to verify your dealer's integrity. A survey of Better Business Bureau reports of well-known online gold coin dealers showed ratings ranging from A+ to F. An online auction seller should have fewer than one complaint in a 100 and should have at least a couple hundred sales in their history.
Determine where to store your gold American Eagle coins. You may not feel that your home is the safest place to store your gold coins. Consider renting a safe deposit box. Your dealer may also offer a storage service. This service may cost 0.75 percent of the current value of your investment. Bankruptcy and/or fraud present additional risks in keeping your gold with another company though. A safe deposit box in a commercial bank or savings institution is probably the safest storage medium.
Give preference to dealers who will also buy your gold when the time comes. If you purchase online, make sure the shipment will be insured and traceable.
- Stockbyte/Stockbyte/Getty Images