Should I buy 22K or .9999 fine gold?

Lately I’ve been on a gold kick but when I’m buying I have trouble deciding between things like a 22K American Gold Eagle or a .9999 fine gold Buffalo.

Which one is better to buy for long term investment purposes?

I can get gold cheaper if I buy things like .900 fine British gold sovereigns whereas it costs a lot more to buy the .9999 fine stuff.

 

Log in or Sign up to hide this ad.

The reason an oz of .9999 is more expensive than an oz of .900 is because you're buying more gold when you buy .9999

It really is that simple.

 

Not really what I meant.

For example a 1oz American Gold Eagle and a 1 oz Gold Buffalo both contain 1 oz of pure gold.

There isn’t less gold in the AGE just because it’s 22K not 24K like the Buffalo.

 

The below isn't my quote. You said this:

 

I know but what I meant was I can buy 1 oz of pure gold in the form of sovereigns for cheaper than say a 1 oz gold Buffalo.

I know that sovereigns are only 90% gold but I can buy however many it takes to have 1 oz of pure gold for cheaper than a 1 oz 24K bullion bar or coin.

 

That's all well and good, but I answered your question as presented. I can't interpret what you wrote into something you didn't say.

So as a follow up. When you own sovereigns or any other foreign gold, try to sell it. You'll find it's much easier to unload your American gold, whether it's AGE's or Buffalo's than it is to sell the sovereigns.

 

There is less gold in 22K than 24K

 

I'll vouch for that. I found a 1959 Australian Gold Sovereign in a necklace that came from an abandoned house clean up. Housed nicely, no damage to the coin. Took ages to sell when gold was moving nicely

 

I don't think it matters much if you are talking about "long term investment purposes."

Whether there's a slight discount for one type of gold or another is a separate question.

But if gold doubles in the next 10 years, both will be up close to 100%.

 

The price difference isn't that much difference and in my mind most people prefer 24k gold. I also feel it goes smoother when it's time to sell. I think we both need a gold buffalo, all I gotta do is get the funds!

 

has anyone ever had trouble selling a gold maple?

 

I don't think anyone would have trouble selling but imho, against an American Gold Eagle Coin, I think the AGE's would win hands down unless you were in Canada.

 

Discounts or premiums fluctuate, you can get them daily on the internet (I used to get them in BARRON'S where they still have the 6 most popular gold coins).

At worst, you should get melt value for the gold content.

 

But isn’t the Gold Maple Leaf .9999 fine gold like the Buffalo?

Whereas the AGE is only .9167 fine.

But the AGE would be easier to sell?

 

Pretty sure a Gold Maple can be sold anywhere that buys gold at any time you wanted to sell it.

It’s a .9999 fine pure gold coin.

Gold is gold regardless of if it has a Maple Leaf, Buffalo or Britannia on it.

 

LCS's and American buyers want....wait for it....American coins.

Eagles are the most popular. That said, I can't see having a problem getting bullion/melt value for The Big 7: American Eagle....Toronto Maple Leaf.....Austrian Philharmonic....S. African Krugerrand....American Buffalo....Chinese Panda...Mexican Peso (liquidity better with Mexicans/Hispanics).

 

Aw the Australian Kangaroo isn’t one of the Big ones?

 

My experience with my LCS is that no matter how rare or obscure the coin, I can always get bullion/melt value.

I recently had to sell a comemmorative gold coin. If my LCS can't find a buyer at a modest premium to spot, then it'll be sold for bullion or melted down and sold.

 

I just assumed it would be easier to melt something down if it’s .9999 fine rather than say .9167 since .9167 would require further refining to get it up to .9999 purity whereas if it’s already .9999 it just has to be melted and reforged/recast/reminted.

 

I don't think it's that critical.

And AGE's @ .9167 is good enough with the American buyers right here for that coin.