One way to invest in gold is by buying American Gold Eagle Bullion Coins. Like the Canadian Maple Leaf gold coins, the Gold Eagle coins have a high gold purity rate and they are bought and sold by precious metal dealers regularly. Gold Eagle coins are a popular investment option because they help to stabilize your portfolio as it helps to offset your more risky investments. See below if this is the right investment for you.
Investing In American Gold Eagle Coins
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What is an American Gold Eagle Bullion Coin?
The American Gold Eagle Bullion Coin is the United States’ official gold bullion coin. It is made of 91% gold. According to the law, the gold should come from America. It must be alloyed with copper and silver to produce a more wear-resistant coin.
American Gold Eagle Bullion Coin Specifications
The American Gold Eagle Bullion Coin is available in four denominations. Each of them has an equivalent face value.
1. 1/10 troy oz coin
- Face value: $5
- Thickness: 1.19 mm
- Diameter: 16.50 mm
- Gross weight: 0.1091 troy oz or 3.393 g
2. 1/4 troy oz coin
- Face value: $10
- Thickness: 1.83 mm
- Diameter: 22 mm
- Gross weight: 0.2727 troy oz or 8.483 g
3. 1/2 troy oz coin
- Face value: $25
- Thickness: 2.24 mm
- Diameter: 27 mm
- Gross weight: 0.5454 troy oz or 16.965 g
4. 1 troy oz coin
- Face value: $50
- Thickness: 2.87 mm
- Diameter: 32.70 mm
- Gross weight: 1.0909 troy oz or 33.930 g
The face value is the bullion coin’s legal value as referenced by its issuance and monetized value as coins. However, these do not reflect and determine the coin’s intrinsic value which is much greater and is dictated by certain factors.
The intrinsic value is the actual value of a certain currency, stock, company or product, which is verified through fundamental analysis without any reference to its market value.
Key determinants of a coin’s intrinsic value:
- Troy weight
- Precious metal price
- Market forces
Pros and Cons Of Investing In American Gold Eagle Bullion Coins
All investments have their own benefits and complexities. Before deciding to buy American Gold Eagle Bullion Coins, it’s best to know the pros and cons of this investment opportunity.
- You control your own investment because you don’t have to depend on anyone when making an important decision.
- Physical gold, such as gold bullion coins, correlates to the gold’s current market prices, so it is easier to calculate the value of your coins.
- You are not required to pay for capital gains tax, at least until after you sell.
- When other investments decline, gold usually goes up, this gives your portfolio a stabilizing effect.
- You need to have an approved trustee to store your coins.
- Dealers don’t usually accept credit card payment for gold purchases.
- Coins need insurance according to their full value.
- If you’re not careful, a thief can take your gold.
Things To Remember When Investing In American Gold Eagle Bullion Coins
You can invest in American Gold Eagle Bullion Coins through a self-directed IRA. Only gold coins with a purity rate of 99.9% or more are allowed. The IRS also requires an approved trustee (bank, a credit union or a corporation) to store your gold bullion coins. While it’s tempting to keep them at home, be reminded that the IRS prohibits keeping gold coins at home through a private safe.
Ask for a certificate of authenticity or a guarantee for the bullion’s precious metal content. Note that the certificate of authenticity can be fake, so check its legitimacy by researching first.
Watch this video for the guide on investing in American Gold Eagle Bullion Coins:
Any investment can improve your savings or make a dent in it. Unlike others, you can control your own investment when you invest in American Gold Eagle Bullion Coins because you don’t have to depend on someone or wait for someone to make the important decisions.
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