Precious Metal Investing

Economics Summaries

This page compares the three main 1 ounce gold coins that are used as bullion, and discusses how to buy gold coins as an investment. These include the South African Krugerrand, the Canadian Maple Leaf, and the US American Eagle.

Physical Desc.

Gold Purity

0.9167 (92%)

0.9999 (99.9%)

0.9167 (92%)

Alloy

0.0833 Copper (8%)

none (scratches easily)

0.0533 Copper (5%)
0.0300 Silver (3%)

Carat Value

22

24

22

Diameter

32.77 mm

30 mm

32.70 mm

Thickness

2.84 mm

2.87 mm

2.87 mm

Weight of Gold

31.103 grams (1 oz. troy)

31.103 grams (1 oz. troy)

31.103 grams (1 oz. troy)

Total Weight

33.93 grams (gold plus alloy)

31.1 grams (pure gold)

33.931 grams (gold plus alloy)

Design Description

-

-

Obverse

Paul Kruger bust

Queen Elizabeth II bust

Lady Liberty Standing

Reverse

Springbok Antelope

Maple Leaf

Male Bald Eagle

Language

English and Afrikans

English and French

English

Date

Back

Front

Front

Value Description

-

-

Face Value

none given

$ 50 ( actual value much higher)

$ 50 ( actual value much higher)

Example BUY

$ 983

$ 988

$ 993

Example SELL

$ 1033

$ 1038

$ 1043

Typical Premium

0

+ $5 over Krugerrand

+ $10 over Krugerrand

Other Denominations

1/2 oz., 1/4 oz., 1/10 oz.

1/2 oz., 1/4 oz., 1/10 oz., 1/20 oz.

1/2 oz., 1/4 oz., 1/10 oz.

160

200-800

10

200

10

200

Buying Gold Coins for Investment
A primary consideration is to assure that you don't pay any sales tax. Current sales tax in Santa Cruz County, CA is 9.5%. You may have to visit a nearby state, to avoid paying sales tax. In California, your purchase is exempt from sales tax, as long as the purchase is over $1,500. To avoid required transaction reporting, keep your daily purchase under $3,000. In my area, with current gold pricing around $1,000 per ounce, your ideal daily purchase would be two coins (no tax, private transaction).

The Spread
What is the difference between your dealer's buy price and sell price? With gold at $1,000, I find it about $50 - they will buy at $975, and sell at $1,025. This equates to about a 2.5% fee per transaction.

Storing Coins
Be sure to keep your coins in a bank vault, or in a secure safe. Simply hiding them is a bad idea. Always keep Canadian Maple Leafs in a protective plastic pouch, since they are marked VERY easily (pure gold is very soft).

Selling Coins
Always sell to a reputable dealer, to ensure that you are paid at current market prices.
If you should have some old, scrap gold jewelry, NEVER send it to cash for gold, or any other similar gold-buying scheme. You will be paid a small fraction of what the scrap value actually is. To obtain maximum value, sell to a reputable LOCAL jeweler,

Disclaimer
The author is not a numismatist.
Some data may be incorrect.
Visit a professional coin dealer if you want to sell, or purchase gold coins as an investment.

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