Buying Gold Coins

Gold Coins have been a favorite collectible for centuries. They contain one of the most precious elements on Earth and are beautiful to behold. Gold coins also convey history and art. Many people buy gold coins for both a financial investment and aesthetic pleasure. However, not all gold coins are created equal. Some demand a hefty premium because of their quality or rarity.

It is important to understand what makes a gold coin valuable. The gold in it has value that is determined by the current price of gold. The quality of the coin is also important. The less wear and handling on a coin, the more it is worth. Rarity is perhaps the most vital factor. The fewer gold coins there are like it in circulation, the more it is worth.

Real gold coins were minted as legal tender by governments around the world. Most were minted before the 1930's when most governments around the world, including the United States, went off the gold standard. Gold coins have a stated value on them but are always worth much more than the stated value because of the gold in them. Gold bullion can be made to look like a coin but it is not legal tender. Bullion is made for the gold content although it is often cast with beautiful coin-like artwork. The main difference for the buyer is whether they want a coin that is gold or gold that is merely in the shape of a coin.

Choose your denomination if you want a legal tender gold coin. Most coin dealers consider the standard size for gold coins to be one ounce. This is approximately equivalent to a U.S. $20 gold coin and is about the size of a half dollar coin. Of course it weigh significantly more. You can buy smaller denominations. The United States also minted gold coins in $10, $5, $3 and $1 denominations. There are also foreign coins like the British Sovereign (about a quarter ounce of gold) and French 20 Franc (about a fifth of an ounce of gold) that are very popular.

Search the Internet for the current price of gold. Gold prices change daily and gold dealers base their prices on the daily rate. You need to know the current price of gold so you wont get cheated. Gold prices are stated as dollars per ounce.

Find a reputable gold coin dealer. Be sure they are established and have a good reputation. Ask for recommendations and search the Internet for reviews.

Legal tender gold coins vary in price depending on their rarity and condition. Consult coins books and the Internet to determine a fair price. Pay close attention to the date and mint mark on the coin. This is was distinguishes one coin from another. Understand that the current price of gold will make this price rise and fall.

You can also buy gold coins yourself over the Internet on auction sites like eBay. Understand the risks of buying on Internet auction sites. You are sending your money to a stranger hoping they will mail you gold coins. Be sure you are dealing with a reputable seller and insure all shipments.

Collecting Gold Sovereigns

Gold Sovereigns are one of the longest running series of gold coins in the world. They are .2354 ounces of gold and are about the size of a U.S. nickel. The British have been minting them since 1489 when they issued a sovereign with a portrait of Henry VII. They were replaced by unites and guineas from 1604 to 1816 but returned in 1817 with a portrait of George III. He was the king of England when the United States won its independence. The time from George III until now is considered the age of the modern sovereign. Since earlier sovereigns can be prohibitively expensive, modern sovereigns are the most widely collected.

Gold sovereigns always feature a portrait of the reigning king or queen. The most basic way to collect gold sovereigns are by monarch. In the age of the modern sovereign the portraits are of George III, George IV, William IV, Victoria, Edward VII, George V, George VI and Elizabeth II. Collecting one of each king and queen is easy to do and within the resources of most collectors. Edward VIII was king for less than one year before he abdicated the throne. No sovereigns were made with his portrait. In 1989 a special sovereign was made to commemorate the 500th anniversary of the coin. It has the image of Queen Elizabeth II sitting on her throne instead of a portrait.

Most gold sovereigns have the reverse design of St George slaying the dragon. On several occasions through the years a shield reverse was used. There were different shields for George IV, William IV and Victoria. Elizabeth II has had a shield reverse in only two years. They were in 1989 for the 500th anniversary of the sovereign and in 2002. A different design of St George slaying the dragon was used on the 2005 sovereign. Collecting gold sovereigns by reverse design is simple and won't cost much.

Many of the kings and queens had several different portraits on gold sovereigns during their reigns. These variations are the next logical way to expand a gold sovereign collection. George VI had one portrait with a laureate on his head and one without. Victoria had four portraits: young head with date, young head without date, jubilee head, and old head. George V had a large head portrait and a small head portrait. Elizabeth II has five portraits: first portrait, decimal portrait (second), third portrait, sovereign portrait (1989 only), and fourth portrait.

In the past, some sovereigns were made at mints in British Commonwealth countries. A mint mark is a tiny letter indicating where the coin was made. On most sovereigns the mint mark is above the date. On some the mint mark is beneath the portrait or on the reverse. An "S" stands for Sydney, an "M" for Melbourne, a "P" for Perth, a "C" for Canada (Ottawa), an "I" for India (Bombay) and an "SA" for South Africa (Pretoria). It is relatively easy to collect one of each mint mark. If there is no mint mark then the sovereign was made in London. Since 1932 all sovereigns have been made in London.

You can also collect gold sovereigns by date. This is a very ambitious way to collect. Modern sovereigns were made most years since 1817. The only significant multi-year gaps occurred during the reigns of George V, George VI and Elizabeth II. Unfortunately, these are the least expensive sovereigns. The older and more expensive sovereigns were made just about every year. It will be very expensive to collect every year. Since some years are very rare, they may be impossible to buy at any price. The ultimate sovereign collection would include every year and every mint mark. Few collectors have ever achieved this.