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 gold 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||Investment Grade Gold||Any quantity from 1 gram upwards. Recommended minimum of $2,000 because of $5 per quarter 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.
- 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.
How to Start Gold Investing with OneGold
With a deep understanding of precious metals unmatched in any competing partnership, APMEX and Sprott came together with a shared vision for the evolution of precious metals ownership. OneGold is the result of the knowledge, experience, and resources of these two globally recognized partners.
- Create a Free Account at OneGold.com
- Choose between our selection of investment-grade precious metals.
- Low premiums & tight spreads.
- Purchase using Bitcoin, Check, Credit Card or connect your Bank Account.
- No need to wait on funds clearing, you can “Buy Now, Pay Later”.
- Fully allocated and segregated investment grade precious metals.
- Annual storage fees are Silver .30% & Gold .12%
A guide to investing in gold.
A guide to investing in silver.