Another popular way of investing in physical gold is to buy bullion coins. Bullion coins have a very long history, being first used in the 7th century B.C. in Lydia in Asia Minor. These are the coins that are minted from precious metals (like gold) and their value depends on the value of the metal they are made of. They are used as a way to store wealth, as an investment, but not as legal tender. Although in many countries they can be used to make payments, their nominal value is much lower than the value of the metal contained in them.

Bullion coins are available in many sizes and weighs. The most popular are one troy ounce coins, although coins weighing less (e.g. 1/10 oz., ½ oz. or ¼ oz.) or more (e.g. 1 kg and up) can also be found. The largest bullion coin ever was made in 2012 in Perth, Australia. It is known as the One Ton Gold Kangaroo Coin. It has a $1 million nominal value. It has an 80 cm diameter and is 12 cm thick.

As mentioned earlier the price of a bullion coin depends on the market value of its metal, plus some margin. The price is not determined by its face value. The price is also influenced by the type of coin, its supply, and the demand for it. Bullion coins often have a higher price than gold bars of the same weight. This is mainly because their production costs are higher. Coins have to be perfectly round and their real weight must equal the declared weight. But they are much more liquid and elastic than gold bars – it is easier to sell a few small coins than one heavy bar.

The most popular gold bullion coin is the South African Krugerrand. It was introduced in 1967 and is made of exactly one troy ounce of gold. Currently there are more than 46 million of these coins in circulation. Other popular coins include the American Gold Eagle, American Buffalo, British Britannia, Mexican Libertad, Chinese Golden Panda and Austrian Philharmoniker.

Where can you buy gold bullion coins in the USA?

US Mint

One of the best-known American sources of gold coins is the US Mint. It dates back to the roots of the country, having been established in 1792. It offers bullion coins made of gold and silver, including the American Buffalo gold coins. The main advantage of buying coins from the US Mint is undoubtedly their high quality and authenticity, and the guaranteed of the US government.

Internet sites

Gold bullion coins can also be bought from a variety of internet sites. The most popular ones include:

• GoldBroker offers truly unencumbered ownership of physical gold/silver stored in secure vaults, with direct personal access. GoldBroker has created a solution which surpasses virtually any other method and offers wealth preservation at the highest level. Disclaimer: the above link includes an affiliate code, which means that we would get a small referral fee based on purchases on that website. Regardless, we think that this company is worth doing business with.
• OnlyGold.com
• USAGold.com
• GoldLine.com
• UKGoldBullion.co.uk
• BlanchardOnline.com
• GoldBullionReserve.com
• Gold-Bullion.org
• Monex.com

Internet auctions

Gold coin can be found on the most popular auction site in the U.S. – eBay.