One of the first things you learn about is karats (also known as carats but definitely not known as carrots). The karat is a measure of fineness. A karat in gold is equal to 1/24 part of pure gold (in an alloy). Here’s a rundown of how many karats you need to be aware of:
- 24-karat gold: Equals pure gold (100 percent gold).
- 22-karat gold: Equals 11/12 gold and 1/12 other (such as copper). A bullion coin or bar that is 22-karat gold is roughly 92 percent pure gold.
- 18-karat gold: Equals 18/24 gold (the other 6/24 is copper or other metal). Basically, 75 percent of the item is pure gold.
- 14-karat gold: Means that 14/24 of the item is gold. In other words, 58.3 percent of it is pure gold.
Gold Eagle Coin
The authenticity, content, weight, and metallic purity of gold eagles are guaranteed by the U.S. government, which makes them an acceptable investment, not only to American investors but also in international markets.
The advantages of gold eagles are numerous. Many financial advisors see them as a good way to diversify the typical portfolio. Gold is well known as an inflation hedge, and gold eagles are a convenient way to add this benefit to long-term investment strategies. Gold eagles are very popular and the market for them is very large, so buying and selling them isn’t a problem. Buying or selling them is usually private and nonreportable when done in small quantities.Gold eagles are typically sold as 1-ounce bullion coins. However, you can also get them in 1/2-ounce, 1/4-ounce, and 1/10-ounce denominations. This makes gold affordable for just about any portfolio.
Sites such as the US Mint’s page provide more details.American Buffalo Gold Bullion Coin.
The face value of the coin is $50, and for the first time ever, investors can get 1 troy ounce of pure gold in bullion coin form. These coins were manufactured by the U.S. Mint at West Point, and they come in special protective holders. (Remember that pure gold is soft.)Krugerrand (see the following figure) was the world’s first gold bullion coin. Since their issuance, nearly 55 million coins have been bought and sold across the globe. The 22-karat coins are available in 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce denominations. Because they have a huge market and are highly liquid, buying and selling them are easy.
Krugerrand bullion coins
Canadian Maple Leaf Coin
- 400-ounce bullion bars
- 100-ounce bullion bars
- Kilo bullion bar (32.15 ounces)
- 10-ounce bullion bars