Gold Bullion Coins Taking Backseat to Rare Coins, Bars

Reports on the incredibly high number of gold bullion coins being sold by the U.S. Mint, the Royal Canadian Mint and other bullion coin producers have flooded the internet for the last few months, but analysts have found that a new trend seems to be emerging.

“There are three main classifications of gold when it comes to the physical investment market,” says analyst Roger Hudson. “In the realm of bullion you have bars, which are also known as ingots. There are also bullion coins, such as American Eagle uncirculated coins, Maple Leaf uncirculated coins, and South African Krugerrand uncirculated coins. These are all examples of recently-produced gold bullion coins that are minted regularly and in large quantities.”

“The third type of physical gold investment is the rare coin,” Hudson said. “Investment-grade rare coins are usually well-cataloged, easy to price-check and easy to sell. Ancient coins and shipwreck coins don’t really qualify as investments, but lots of pre-1933 U.S. gold coins are very popular with investors because of their historic profitability and the privacy that is afforded owners of such coins,” Hudson added.

Gold buyers have been targeting gold bullion coins less, and Hudson believes this is party to do with the fact that bullion bars are less expensive and are just as easy to sell as bullion coins. Meanwhile, some investors who would have previously bought bullion coins are now opting for rare coins like $20 Double Eagles, because they sometimes outperform bullion and they could be exempt from confiscation if the U.S. government freezes the gold bullion market again. For these reasons, says Hudson, mints may be forced to lower prices on bullion coins as more investors flock to older, certified coins for wealth preservation and added insurance for their portfolios.

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