When news like unemployment reports, interest rate changes, or natural disasters hits, investors look for ways to protect themselves from uncertainty. Gold is usually one of the first places they turn. If you’re looking for protection, are gold coins a good investment?

Our recent buying patterns point to yes. In our own data, 51% of customers invest in gold, and 97.6% of those buyers choose coins. This article explains why people turn to gold, what to know about gold coins, and how they compare with other ways to invest in gold.

Table of Contents

Why invest in gold

Gold has always been trusted as a way to hold value. It doesn’t rely on a company’s performance or a government’s policies. It’s real, it’s tangible, and people all over the world recognize it. That’s what makes it one of the best long-term ways to preserve wealth.

Other reasons investors look at buying gold include:

Inflation hedge: When prices rise and the dollar loses buying power, that’s usually when gold prices rise. So it gives you a way to preserve wealth and keep your purchasing power over the effects of inflation.
Currency protection: In 1933, Franklin Roosevelt eliminated the gold standard, so gold is completely separate from any country’s currency. That makes it an independent and protective asset, which is why central banks hold a significant amount of gold.
Liquidity: Gold is easy to sell if you ever need to. There’s always a market for gold coins or bars. That means you can turn your investment into cash without a long wait or complicated process.
Diversification: Gold is a way to diversify your investment portfolio. It doesn’t move the same way as stocks or bonds, so when those markets struggle, you’ll often see rising gold prices. Holding some gold helps reduce overall risk and gives you more stability through market swings.

Types of gold investments

There’s a lot of ways to invest in gold. Of course, one option is buying gold coins or bars and owning the physical metal yourself. You can also invest in gold mutual funds, ETFs, mining stocks, futures, and even gold certificates. Here’s how they differ:

Type	What it is
Physical gold coins or bars	Real gold you can hold
Gold ETFs	You buy shares that track the price of gold
Gold certificates	A document that represents ownership of gold held by a third party
Gold funds	A mutual fund that invests in gold-related assets
Gold mining stocks	Shares in companies that produce or mine gold
Gold futures	Contracts to buy or sell gold at a future price

Key details of gold bullion coins

Purity and weight

Always check the purity and weight of any gold coin before you buy. Most investment-grade gold bullion coins are 99.9% pure. The most common weights are:

1 troy ounce
1/2 troy ounce
1/4 troy ounce
1/10 troy ounce

Premiums over spot price

Gold coins sell above the current market, or “spot,” price. That extra cost is called the premium, and it covers things like minting and dealer expenses. Some coins have higher premiums because they’re more popular or harder to find.

A few examples of valuable gold coins with higher premiums include:

American Gold Eagle: Premiums for this gold coin are higher due to high demand, full U.S. government backing, and its status as the most liquid gold coin worldwide.
American Gold Buffalo: This gold coin has higher premiums because it’s a 24-karat coin that’s limited in supply. It’s also highly collectible and has historical and numismatic appeal.
2025 Royal Mint Sovereign: Gold sovereigns are more expensive gold coins because they’re limited. 2025 is the last rose gold issue in the series. It also commemorates the 200th anniversary of the Royal Arms design on the back of the coin.

Some physical gold coins with lower premiums are:

South African Krugerrand
Canadian Maple Leaf
Austrian Gold Philharmonic

Legal tender

Many gold coins have legal tender, but their actual market value is much higher than face value because of their gold content. So why should you care about legal tender? Mainly because several states in the U.S. have passed laws that exempt gold and silver coins from certain sales taxes.

Liquidity

Well-known gold coins are easy to sell. If you stick with widely recognized options like American Eagles or Canadian Maple Leafs, you’ll easily find buyers when you’re ready. To sell them, you can work with your gold dealer or local coin shops.

Verification and authenticity

Always buy from a trusted dealer and get documentation showing the coin’s authenticity so you don’t fall victim to gold scams or counterfeits. Things to look for:

Packaging: Tamper-evident sealed plastic holders or capsules that protect the coin and show if anyone has opened it. Your gold bullion coins should also come in mint packaging that matches the coin and series.
Security features: These can include holograms and unique serial numbers on the packaging.
Certificates: Gold bullion coins should come with Certificates of Authenticity (COA) or grading certificates from reputable organizations like PCGS or NGC.

Types of gold coins

There are a few different types of gold coins you can buy, with specific differences depending on your goal.

Bullion coins: These are investment-grade coins that have market appeal based on their gold value. They’re also the type of coins you can buy with retirement savings in a Gold or Precious Metals IRA.
Numismatic coins: These are collectible coins that have numismatic value based on their rarity, condition, and demand. Since their gold content isn’t the primary factor in value, they can be a riskier investment. They’re also not approved by the IRS for Gold IRAs.
Proof coins: These are specially made collectible coins that are produced in limited quantities. Collectors like them because of their high-quality finish and limited mintage.
Fractional coins: These are smaller-sized coins for investors who aren’t able to buy a whole 1-ounce coin.

Type	Details
Gold bullion coins	Investment value based on gold content and purity
Numismatic coins	Collector coins with value based on rarity, condition, and demand
Proof coins	High-quality versions of gold bullion coins with extra detail and a mirror finish
Fractional coins	Smaller denominations of gold coins that make investing more affordable

How to safely invest in gold coins

Once you’ve decided which coins you want, the next step is buying gold bars or coins from a trusted source. Work with a reputable dealer that transparently shares their gold prices and has a positive track record.

Make sure the dealer has been in the gold market for at least ten years. Ask them questions about availability, delivery times, and buy-back programs. A dealer should settle trades within 72 hours and ship out your gold coins within 2 weeks.

Don’t fall victim to scams, high-pressure sales tactics, or fake coins.

When your coins arrive, inspect them and make sure they match your order in weight, purity, and condition. Keep your receipts and any certification that comes with them. Store gold safely in an environment that protects both the gold and packaging from moisture or other damage.

Gold coins vs gold bars

If you’re looking at physical gold investments, how do you decide between gold bars and coins? Both are tangible assets with intrinsic value, market demand, and the ability to protect during economic uncertainty. But, here are the main differences to consider:

Sizes: Gold bars come in more sizes than coins, which might be better depending on how much money you have to invest. You can buy bars from small 1-ounce to large 1-kilogram. Gold coins come in six sizes.
Premiums: Gold coins have higher premiums because of their design and minting costs. This reduces the amount of gold you can buy for your investment dollars. Buying gold bars is a bit like buying in bulk and can be a good option for long-term wealth preservation.
Designs: Gold coins offer interesting designs that people recognize and can be fun to collect. Bars are more utilitarian and lack the collectible aspects of coins.
Portable: Both gold bars and coins can be portable, especially if you buy bars in smaller increments.

Drawbacks of gold investing

Before you invest in gold coins or bars, there’s a few drawbacks that experienced investors in other assets should know:

No income

Gold doesn’t generate income. You won’t get dividends, you won’t get cash flow, and what you’re relying on is rising prices. If you’ve been watching the market, you know gold is up more than 50% from a year ago, but you can’t count on those kinds of price movements in the future.

Price volatility

Gold price fluctuations happen when investors focused on growth move out of gold. If they see higher returns elsewhere, feel less worried about a financial crisis, and are willing to take on more risk, demand for gold drops.

If you look at all the ups and downs over the past five years, it’s easy to see why it makes sense to hold some gold as protection against unpredictable market conditions.

Storage and insurance costs

We’ve already discussed that you’ll need to find secure storage for your gold. Costs here depend on the route you take, but some ranges you can use to assess for investment purposes are:

Home safe: There’s a huge range here. The money upfront to buy a safe could be between $300 to $3,000+. You also might have installation costs and you’ll need to factor insurance costs.
Bank vault: Using a bank safe deposit box can be inexpensive, especially if you hold certain accounts or amounts at the bank. A good range is $30-$200, depending on how much gold you have. If you go this route, you’ll still need insurance because gold coins and bars aren’t covered under the FDIC.
Depository: The range here can vary greatly depending on the amount of gold you need to store and how the depository charges fees. You can use a range of .3% to .65% of your gold’s value per year. Note that depositories include insurance as part of their costs, so you don’t need to buy that separately.

Are physical gold coins right for you?

Are gold coins the right investment for you? It depends on your goals. Think about how much gold you want in your portfolio and what’s driving your decision to buy.

Look at current market trends, your risk tolerance, and whether you’re focused on long-term stability or short-term opportunity. Gold coins can be a great way to diversify your portfolio if they fit your overall strategy.

To learn more about gold investing and the options available, connect with the Swiss America team today!