3 Issues that Influence Gold Bullion Coin Prices
If you’re purchasing gold coins as a safe-haven investment, clearly, you want the best possible rate for those gold bullion coins. But how is that rate determined? Here are three factors that will affect the price you’ll ultimately pay.
There are numerous reasons why gold bullion is an excellent addition to your portfolio; not only is it a liquid asset, it is also a solid hedge against inflation. However, when purchasing gold bullion coins, you might notice that the price of different coins varies, even though for many coins, the amount of gold content is often the same. Here’s why.
Investors like certain coins. Yes, even though gold bullion buyers don’t view the coins as necessarily being collectible in the sense that rare, numismatic coins are, some bullion coins are just more popular than others, which does affect the price. For example, American Buffalo and American Eagle coins are priced slightly higher than Canadian Maple leaf coins.
Dealer mark up. Precious metals dealers add a premium to the price of bullion in order to function as a business and cover the cost of acquisition, customer service, storage, insurance, rent, and other factors.
Coin weight. Coins that are lighter than one troy ounce will be costlier in the long run than single ounce coins, since the premiums will be higher.