With the US Federal Reserve currently printing money at a record pace, and triggering massive inflation that devalues their paper currency, it’s no surprise that investors are looking at other options to hedge against inflation and macro economic uncertainty. Gold fits the bill. It has maintained its value throughout history and the spot price of gold has risen significantly the last few years.
There are plenty of reasons to collect gold. What’s great about the process of collecting gold is that you can turn it into a hobby! Some chose to metal detect or pan for gold. Some like to visit thrift stores or pawn shops looking for high gold content jewelry. Others turn to collecting gold coins that have numismatic value, or collecting gold coins bars that have bullion value.
If you are interested in turning your inflation hedging pursuit of gold into a fun collecting hobby, here are the most popular pieces of gold to collect.
- American Gold Eagle – First minted in 1986, the American Gold Eagle is arguably the most popular gold coin in the world. Gold Eagles are released annually in a variety of weights to suit any budget. Each coin is guaranteed by the US government and stamped with a face value. Gold Eagles are world renowned for their timeless design and relatively low premium over spot price, making them easy to stack and trade.
- Canadian Gold Maple Leaf – The Royal Canadian Mint struck its inaugural Gold Maple Leaf coin in 1979, making it the first .9999 fine (24 karat) gold coin in the world. Gold Maples are released annually in a variety of weights. They are highly sought after for their standard-setting purity and anti-counterfeiting technology, such as precision radial lines, advanced engraving, and the Royal Canadian Mint’s proprietary BULLION DNA technology. With Her Majesty Queen Elizabeth II’s death in September 2022, the Queen’s right-profile effigy from Susanna Blunt will be the last update to the Queen’s appearance in 2023. The coins will be replaced with a new effigy of King Charles III going forward.
- 1 oz Gold Bars – Gold bars are one of the most cost-effective ways to own the physical metal. That’s because bars generally match government-minted coins in content and purity, but cost less thanks to low production costs and less elaborate designs. This makes them a great long term investment. There are different weights, varieties, and designs of bars out there making them very collectible.
- Pre-1933 Gold Coins – Minted before 1933, many of these American coins spent time in circulation — changing hands in everyday transactions for items like food, rent, and clothing. Pre-33 gold coins are available in various grades and conditions, including those certified by PCGS and NGC, two of the most trusted third-party coin grading services in the nation. Supply of these historic coins is limited, so rising demand could yield higher value if you choose to sell in the future. Holding a pre-1933 gold coin takes you back to a simpler time, when the gold standard reigned supreme.
- American Gold Buffalo Coins – The 1 oz Gold Buffalo Coin is a stunning rendition of the iconic 1913 buffalo head nickel. Its finely-sculpted symbols of the wild American frontier appear to radiate in pure 24-karat gold, resulting in one of the most exquisite coins ever produced by the US Mint. First struck in 2006, the Gold Buffalo’s low annual mintage of only 300,000 makes it highly sought after by investors and collectors. A Gold Buffalo coin is the perfect balance of historical significance, legal tender backed by the US Government, and the US Mint’s purest, 24-karat gold content.
- South African Krugerrands – These coins were first minted in 1967 and are highly sought after due to their historical significance as the first modern gold bullion coin. The 1980 Krugerrand is well known to collectors.
- Australian Gold Kangaroo – These coins are minted by the Perth Mint and feature a different design each year, with the exception of the 1989 and 1990 editions, which feature the same design.
- Chinese Gold Pandas – These coins are minted by the People’s Republic of China and feature a new design each year, making them highly collectible.
Be sure to purchase from a reputable gold dealer and pay attention to the spot price of gold. Your best options options are to purchase online or at your local coin store (LCS). Beware of fake gold bars. One trick is to coat the outside of the bar with gold over an inferior metal. Purchase one “in assay” that has a certificate and a serial number. Gold coins are more difficult to forge.