Let’s clear up some misunderstandings about what gold bullion is: There is a common perception that the rectangular bits of gold (“bars”) are the most cost effective, and perhaps the only available form of gold bullion. There are also perceptions that the round bits of gold (“coins”) are not really gold bullion, that “coins” are in limited supply, expensive, and are only traded as collectors’ items: These are also incorrect.
The word ‘bullion’ has a very simple definition: it is a refined and stamped weight of precious metal. When you buy coins from RC Bullion, we sell only coins that are produced by government mints. These coins are produced for investment purposes are guaranteed with the integrity of the issuing government.
The standard gold bar held as gold reserves by central banks and traded among bullion dealers is the 400-troy-ounce “Good Delivery” gold bar. At $1200 an ounce that comes out to $480,000. Unless you’re a billionaire or industrial investor then this investment is probably not for you.
Much smaller bars are available but recently bars have been subject to much counterfeiting. A recent incident in New York found that legitimate 10 oz bars with paper work and serial numbers had been hollowed out and filled with tungsten. These incidents are becoming more and more frequent.
Because gold coins come in smaller values they are easier to buy and sell. Coins also can have additional numismatic value beyond the spot price of their constituent gold or other precious metal. This is not just true for collectors’ coins but for investment grade coins as well.
Investment grade coins are of the highest grades and rarity. Not to be confused with “collectors’ coins,” these coins are purchased primarily as an investment. The best gold coins for investment are government-minted bullion coins with low premiums and high liquidity. A gold bar, on the other hand, is much more difficult and time-consuming to liquidate. Because of its size and weight – depending on the size of the bar, its value could amount to several thousand to hundreds of thousands of dollars – bullion of this scale is simply less transferrable and convenient than are coins.
The most common retirement plans involve a conventional IRA or 401(k) with a bank or brokerage firm that specializes in bank deposits, stocks, mutual funds, annuities and other assets. In most cases, investors have little or no say in the investments being made. With a self-directed plan the investor is empowered to make his or her own investment decisions and is able to expand on their available investment options. Among those options is placing gold coins and bullion and other precious metals into an IRA.
Of the various choices for investment grade coins, the American Gold Eagle is the model. The U.S. Gold Eagle is the most recognized gold bullion investment in the world, with its gold content and purity backed by the U.S. government. American Gold Eagles are legal U.S. tender and acceptable for precious metal IRAs. It’s also one of the best gold coins to buy for a long term investment.
The U.S. American Eagle coins are issued in four denominations. These denominations are: one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce. One aspect of these smaller fractional coins is that they carry higher premiums above spot prices than the one ounce versions. Our recommendation is that it’s best to stick with the one ounce coins.
RC Bullion has created a new and comprehensive FREE mini-course entitled “The Essential Guide to Successful Gold and Silver Investing.” In this course you’ll learn how to convert an IRA or rollover a 401(k) into gold coins, how do buy gold or silver in an IRA, what are the pros and cons of investing in gold coins and other gold coin investment tips. Learn how to invest like an expert and make the decisions that could save you thousands of dollars.