Buy Gold Coins?
It is generally believed that gold coins are an easy and affordable option for investing in gold. In truth, the safest and cheapest way to own gold is certainly the easiest way to own and sell gold – but this way is not gold coins.
The spread for gold coins, or the difference between the trader's selling price and buy-back price, is normally between 7 to 10 percent. That means a private individual will lose 7 to 10 percent when buying gold coins. For a modern investment, this is a high transaction cost. For most people, therefore, investing in gold coins isn't the best choice.
For the safest, most affordable, and easiest way to invest in gold, it's best to go directly through OneGold and invest in pure investment gold. This is a reliable method to access gold. Average costs for bullion transactions are around 1.2 percent with OneGold, or just a sixth of the average transaction cost for gold coins.
What's Wrong with Buying Gold Coins?
When it comes to small gold bars and gold coins, neither are inexpensive or safe ways to trade in gold. This choice may lead to:
- Higher prices for gold
- Higher storage costs
- Complex and expensive insurance
- Concerns about authenticity
- Insecurity in the financial crisis
- Bad selling price options
Under the Microscope: the High Costs of Buying Gold Coins
The table below shows the value lost when trading gold coins and small gold bars. It compares the prices of coin merchants to those of OneGold's bullion delivery services.
|Who||Product||Note||Value lost to trading costs. Spread plus commission.|
|Trader 1||1 new Sovereign||-13.2%|
|Trader 1||25 new Sovereigns||Bulk rate||-9.2%|
|Trader 2||Used Sovereign||-9.4%|
|Trader 3||High circulation 1oz coin||-5.8%|
|Trader 4||10 used Sovereigns||Bulk rate||-9.9%|
|Trader 4||100g bar||Cheapest trading of any coin or bar from any supplier||-6.7%|
|OneGold||Bullion||Any quantity from 1 gram upwards. Recommended minimum of $2,000 because of $4 per month storage and insurance fee||-1.2%|
- These products are considered bullion and have no collector value, meaning their value rests entirely on their gold content.
- Lost value is less with OneGold bullion because it can be used to settle a trade on main market bullion.
- Sovereigns are less than 1-ounce gold coins and are more expensive to trade.
- Gold coins are normally just slightly more expensive than small gold bars.
OneGold makes its buyback prices visible every day, all hours, on the OneGold website. Prices vary 0.1 percent from the spot price for instant trading, with a 0.2 percent spread. There is also a 0.5 percent commission both at purchase and sale.
The Costs and Difficulties of Buying Gold Coins are All Easily Avoided
Most customers of OneGold bullion started their journey by investigating gold coin investments, before turning to OneGold. They chose OneGold to avoid unnecessary costs and problems found with trading in gold coins.
Customers genuinely feel safer, more productive, and more confident in the selling power of their gold investments. OneGold offers the best solutions to gold buying problems and guarantees the lowest prices.