Best Gold Coins to Buy in Canada?
Not all gold coins are equal.
The most important factor when buying a gold coin in Canada relates the purity of the gold coin. We've written a comprehensive article about the pitfalls of buying gold coins that are not pure in Canada (see Risks for Canadian buyers on buying non pure gold coins).
The simplest explanation for this is that every bullion dealer in Canada that sells any coin that is not made of pure gold is required by law to charge HST on top of the value of the coin being sold.
Common gold coins that fit into this category include:
- American Gold Eagles
- Krugerrands
- Sovereigns, and
- almost all vintage and ancient gold coins
And this is why many bullion dealers in Canada either refuse to buy these coins back from the public, or are forced to offer very low payouts as they tend to be either melted or shipped to other countries that do not tax these types of coins.
So as a Canadian, it is better of you only invest in 24 Karat gold
Best Gold coins to buy in Canada for Investment
Canadian Maple Leaf (24 Karat)
The Canadian Maple Leaf is a highly sought-after bullion coin, known for its high purity and beautiful design. It is produced by the Royal Canadian Mint and is available in various sizes, including the 1 gram mini-gram, 1/20, 1/10, 1/4, 1/2, and 1 ounce.
In Canada, the Canadian Maple Leaf coin stands out as the most traded and sought-after gold coin. This popularity is beneficial when you decide to sell your coin, as there is a high demand for them. As a result, you can expect to receive a much higher payout compared to other gold coins.
But not all Gold Maples are equal.
In 2014, the Royal Canadian Mint added significant anti counterfeiting technology to both sides of each coin, making it easy for anyone to easily identify it as a real Gold Maple Leaf coin without the need for lab testing like every other gold bullion product on planet earth. The most obvious improvement was the addition of the super fine radial lines, which counterfeiters have attempted to copy and have always failed.
Its why 401Gold highly recommends Gold Maple Leaf coins (post 2014) to all our clientele. Please see our live prices for Gold Maple Leaf coins
American Eagle (22 Karat)
The American Eagle gold coin is one of the most popular bullion coins in the world. It is produced by the United States Mint and is available in various denominations, including 1/10, 1/4, 1/2, and 1 ounce.
If you are planning on taking your gold coin to the United States, then this is the gold coin for you. We do not recommend people buy Gold American Eagles, unless you plan to take them out of Canada
South African Krugerrand (22 Karat)
The South African Krugerrand was the first gold bullion coin to be produced and is still one of the most popular coins among investors. It is minted by the South African Mint and is available in 1/10, 1/4, 1/2, and 1 ounce sizes.
American Buffalo (24 Karat)
The American Gold Buffalo is a 24-karat gold bullion coin minted by the United States Mint, and is one of the best Gold coins to buy in Canada. It was first offered for sale by the mint in 2006. The coin is notable for its design, which features a depiction of a Native American chief on the obverse and an American bison (buffalo) on the reverse. The American Gold Buffalo is one of the purest gold coins ever minted by the United States, containing one troy ounce of 24-karat gold. It is a popular choice among investors and collectors alike.
Chinese Panda (24 Karat)
The Chinese Panda is a unique bullion coin produced by the China Mint. What sets it apart is that the design of the coin changes annually, making each year's Panda coin a collector's item in addition to being an investment. As it is 24 Karat, it is surely one of the best Gold coins to buy in Canada.
Australian Kangaroo (24 Karat)
The Australian Kangaroo, also known as the Gold Nugget, is produced by the Perth Mint in Australia. It features a unique kangaroo design on the reverse side and is available in various sizes, including 1/20, 1/10, 1/4, 1/2, 1, 2, 10, and 1 kilogram making it another best Gold coins to buy in Canada.
Gold Britannia (24 Karat gold after 2013)
The Gold Britannia is a series of bullion coins minted by the Royal Mint in the United Kingdom. First introduced in 1987, the coin features a depiction of Britannia, the female personification of Britain, on the reverse side. The obverse side typically features the portrait of Queen Elizabeth II. The Gold Britannia is minted in various denominations, ranging from 1/10 oz to 1 oz, and is made of 24-karat gold, making it a popular choice among investors and collectors.
Philharmonics (24 Karat)
The Gold Philharmonic is a bullion coin produced by the Austrian Mint in Vienna, Austria. It was first minted in 1989 and quickly became one of the world's most popular bullion coins. The coin features the Great Organ of the Golden Hall in Vienna's Musikverein, as well as instruments from the Vienna Philharmonic Orchestra, on its obverse side. The reverse side of the coin depicts the famous pipe organ in the Musikverein concert hall. The Gold Philharmonic is minted in various denominations, including 1/25 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz, and is made of 24-karat gold.
Why Invest in Gold Coins?
Historical Value
Gold coins have been used as currency and store of value for centuries, making them a symbol of wealth and prosperity. Their historical significance adds to their appeal, especially for collectors.
Inflation Hedge
Gold has traditionally been seen as a hedge against inflation, as its value tends to increase during times of economic uncertainty. Investing in gold coins can help protect your wealth against the effects of inflation.
Portfolio Diversification
Including gold coins in your investment portfolio can help diversify your holdings and reduce overall risk. Gold often behaves differently from other assets, making it a valuable addition to a well-rounded portfolio.
Factors to Consider When Buying Gold Coins
Purity
The purity of gold coins is measured in karats, with 24 karats being the purest form. Most gold coins are either 22 or 24 karats, with higher purity coins typically commanding a higher price.
Weight
Gold coins come in various weights, ranging from fractions of an ounce to several ounces. The weight of the coin will affect its price, with heavier coins generally costing more.
Design
The design of a gold coin can also affect its value, especially for collectors. Coins with unique or historically significant designs may be more valuable than standard bullion coins.
Premium
The premium is the additional cost you pay above the spot price of gold. It includes the cost of manufacturing, distribution, and dealer markup. When buying gold coins, it's important to consider the premium and its impact on the overall cost.
Types of Gold Coins
There are several types of gold coins available for investment, each with its own characteristics and appeal.
Bullion Coins
Bullion coins are minted primarily for investment purposes and are valued based on their gold content. They are typically issued by government mints and are widely recognized and traded.
Numismatic Coins
Numismatic coins are valued not only for their gold content but also for their rarity and historical significance. They are often sought after by collectors and can command higher premiums.
Proof Coins
Proof coins are specially minted coins with a high-quality finish and are often used as collector's items. They are not typically bought for their gold content alone but rather for their aesthetic appeal.
Where to Buy Gold Coins
When buying gold coins, it's important to purchase them from reputable dealers to ensure their authenticity and quality.
Authorized Dealers
Authorized dealers are dealers who have been approved by government mints to sell their coins. They are often a safe and reliable source for purchasing gold coins.
Online Retailers
There are many online retailers that sell gold coins, making it convenient to purchase them from the comfort of your home. However, it's important to research the retailer's reputation before making a purchase.
Storing Gold Coins
Once you've purchased gold coins, it's important to store them properly to protect their value.
Home Storage
Some investors choose to store their gold coins at home, but this comes with risks such as theft or damage. If you decide to store gold coins at home, consider investing in a secure safe or vault.
Safe Deposit Box
Another option for storing gold coins is to rent a safe deposit box at a bank. This provides a secure and convenient way to store your coins, but it may come with additional costs.
Conclusion
Investing in gold coins can be a lucrative and rewarding venture, providing both financial security and the joy of collecting. By understanding the factors to consider when buying gold coins and knowing where to buy them, you can make informed decisions that will benefit your investment portfolio.
