When it comes to making a solid investment with guaranteed future returns, buying gold bullion coins is one of the most popular options preferred by investors.
There are so many gold bullion coin options available for coin collectors to choose from, such as American Gold Eagle coins, South African Krugerrand gold coins, Canadian Maple Leaf gold coins, and so many others.
Australia even has the world’s largest and most valuable gold coin, the Australian Kangaroo one-ton gold coin!
If you are considering becoming a gold coin investor, you have come to the right place for all the information you need. One of the first decisions you will have to make is deciding which bullion coin you are going to invest in.
In this article, we will review two of the most popular option; South Africa’s Krugerrand vs. Maple Leaf from Canada.
While there are other worthy considerations, such as the American gold eagle coin, we will be focusing on these two, with an in-depth look at their specific features and key differences.
Why Are Gold Bullion Coins a Good Investment?
You might be wondering what is so special about South African Krugerrand gold coins, American Gold Eagles, and Canadian Maple Leaf gold coins. The following are what makes these gold bullion coins such good investment portfolio options:
- Hedge Against Inflation
In the face of rampant inflation and a worsening global economy, gold coins are a great way to protect your funds. Not only is a gold coin resistant to inflation, but its value increases when that of fiat currencies is suffering.
- Easy To Liquidate
What makes buying gold bullion coins a better option than, for example, investing in Real Estate, is that when it comes to liquidating your investments, it is much easier to sell a gold coin than a house.
The popular gold bullion coins, such as South African gold Krugerrand coins and American Gold Eagles are all IRS-approved, meaning you will be assured that you are getting your money’s worth when you purchase them.
- Demand From Collectors
Gold bullion coins have a lot of intrinsic value which makes them high-value items for many collectors. The Canadian gold maple leaf coin features, for example, some great designs on both sides which makes it a valued addition to any coin collection.
What To Look for When You Buy Gold Coins
Even though we are only focusing on South African Mint and Royal Canadian Mint-issued gold coins, there are so many other bullion coins out there.
Gold investors need to be very careful, especially when buying gold coins from independent precious metals dealers.
The following are the things you need to look for when buying gold bullion coins:
If you want your investment to be worthwhile, look for gold coins that are at least 22 Karat gold. Many gold coins have copper alloy mixed in with them, and ideally, you want as little alloy as possible.
- High Mintage Volume
Only by gold coins that were minted in large volumes. The South African Mint and the Royal Canadian Mint have both been historically very active, so you are guaranteed that their gold bullion coins are in wide circulation, well-known, and easy to sell.
- Established Brand
The country of origin is what gives weight to the value of the coin. Buyers are less likely to buy coins from countries in turmoil. Both South Africa and Canada have very stable economies, making them favorable options for gold investors.
- High Demand
Gold bullion coins, such as Gold Eagles, have a high demand due to their popularity. You can easily sell your gold bullion coin in no time at all without the need to convince the buyer of its authenticity and value.
The design features on each gold coin are what differentiates it from the rest. The Gold Krugerrand bullion coin, for example, is easily recognized and therefore has good face value.
Diversify Your Bullion Coins
In some cases, the value of a gold coin has a lot to do with its demand and its country of origin. If something unfortunate happens to the political and economic stability of, for example, South Africa, it will negatively affect the value of the Krugerrand gold coin.
This is why you need to diversify your bullion coins collection by investing in coins from South Africa, Canada, China, Australia, and the US. That way you know you are covered no matter what happens.
The South African Krugerrand
Gold Krugerrands are the pride and joy of the South African Mint and are made from gold that is mined and refined right there in the country. This means that buying Krugerrands is a direct investment into the economy of South Africa.
Another important aspect of gold Krugerrands is that, similar to Gold Eagle coins in America, they are legal tender in South Africa and can be used to pay for goods and services in the country.
The following are some of the important facts you need to know about the South African gold Krugerrand:
In a bid to make gold more accessible to potential investors and keep its reserves in circulation, South Africa minted the gold Krugerrand coins in 1967 and named them after former president Paul Kruger.
There are currently more than 40 million Krugerrand gold coins in circulation today, and all have the same gold bullion content as the first batch ever minted.
The Krugerrand gold coin has an image of a springbok antelope on one side, with president Paul Kruger on the other. The name of the coin, Krugerrand, is a reference to its ringed edge and is a combination of Kruger and rand, the country’s currency.
In terms of gold content, the Krugerrand gold coin is made up of a mixture of 91.67% and the rest is copper alloy. The weight of gold equates to one troy ounce of .9167 fine gold and the size is 32 millimeters in diameter.
Three metals are used when the Krugerrand coins are minted, namely gold, silver, and copper alloy. However, copper and silver are present in very small amounts that do not affect the value of the coin.
The Canadian Maple Leaf
It is hard to separate the Maple Leaf symbol from the history of the people of Canada. It is a symbol that carries as much weight for Canadians as the bald eagle featured on each Gold Eagle coin does for Americans.
Not only is the Maple Leaf found on the country’s flag, currency, and places of national importance, but it also has a very fascinating history.
The Maple Leaf was used on the bullion coins first minted by the Royal Canadian Mint in 1988 and quickly rose in popularity, becoming a national symbol in a very short time.
However, counterfeits have proved to be a problem, so in 2015 a few details were changed on the original Maple Leaf design.
On one side, the original bullion coin features Queen Elizabeth II holding a scepter and an orb, with some Maple leaves behind her. The words Queen Elizabeth II appear on top of the coin, and “Twenty Dollars” on the bottom half of the other side of the coin.
On one side of the coin, Queen Elizabeth II is featured and on the other is a Maple leaf depiction and the year in which the coin was minted, A new batch is minted each year, from 1979 till now. The current features were designed by Susanna Blunt in 2003.
Canadian Maple Leaf gold bullions are among the purest coins on the market, with a purity of 99.99% pure gold and 0.1% copper alloy.
Key Differences Between the Two Gold Bullion Coins
The following are the key differences between these two gold coins:
The Krugerrand Coins
- The year of Minting was 1967
- Designed by Otto Schultz
- Minted by the South African Mint
- Purity is 91.67%
- A weight of 1.09 oz.
The Canadian Maple Leaf Coins
- The year of Minting was 1979
- Designed by Walter Ott
- Minted by the Royal Canadian Mint
- Purity is 99.99%
- A weight of 1 oz.
Key Considerations for Investors
Before you decide to open a gold coin investment portfolio for either of these beautiful coins, consider these important factors:
- The Canadian Gold bullion coins have a fixed price per ounce while the price of South African Krugerrand coins changes according to the supply and demand
- You need to carefully consider the storage of these coins because the risk of theft is very high when dealing with such high levels of gold content. A bank’s safety deposit box is a viable option, but the best choice would be to store your physical gold coins in the bank vault, which will cost you more
- The rarity of your coins plays an important role in their value. The Krugerrand coins, for example, were once very rare and only minted in the South African Republic. Gold Eagle and Maple Leaf gold and silver coins on the other hand are more readily available
Final Thought: Which Is the Better Gold Coin?
Investing in pure gold coins can be one of the best decisions you will ever make, and both the Canadian Gold Maple Leaf coin and the South African Republic Krugerrand coin are great options.
With a high level of gold purity, the Canadian gold coin is the better option in that regard. However, the Krugerrand coins are more unique and appealing, which makes them the more valued collectible of the two.
In the end, it is difficult to say which coin is the better option, and your choice will depend a lot on your taste.
Both coins have a colorful history, are valued by national dealers and investors alike, and are viable options for those looking for a great investment.