What government-issued bullion coin do you reject?

Discussion in 'Bullion Investing' started by Jason.A, Jun 17, 2017.

  1. mpcusa

    mpcusa "You break it you buy it" Supporter

    That,s a double edge sword, you may not get the tax break, but most
    places will tax the hell out of you when you buy, many do here where i
    Live, here in Vegas !
    Foreign Gold is non taxable at the time of purchase !
     
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  3. mpcusa

    mpcusa "You break it you buy it" Supporter

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    Home » The World’s Most Popular Gold Coin
    The World’s Most Popular Gold Coin
    By www.southcapecoins.co.za/ .......

    The Krugerrand is the world’s most popular gold investment coin. There are more in circulation internationally than all the other gold coins combined. To date, Krugerrand coins containing 48 million ounces of gold have been sold.

    [​IMG]The Krugerrand was first minted in 1967 in an attempt to market South African gold to international investors. Produced by the Rand Refinery, the 22 karat gold coin weighed just over one troy ounce. The additional metal was a copper alloy added to the gold to make the coins harder and more resistant to scratches. The copper is what gives the Krugerrand its characteristic red appearance.

    On the front of the coin is the image of Paul Kruger, the last president of the old South African republic. The back of the coin depicts a Springbok antelope, one of South Africa’s national symbols, as well as the mint date and the fine gold content. The name Krugerrand is a combination of Paul Kruger’s name and the word “rand”, which is the monetary unit of South Africa. From 1980, the Krugerrand also became available in half ounce, quarter ounce and tenth ounce sizes.

    The Krugerrand was the first gold bullion coin to be struck by any nation. Before it, gold was only obtainable in brick form, making it unaffordable for private individuals to own.For nearly two decades after the Krugerrand was first minted, it dominated the global coin market.

    In 1975 the U.S. government repealed the Gold Reserve Act, and Americans could once again freely own and trade gold. As a result, investing in Krugerrands skyrocketed. The USA became the biggest market for Krugerrands, accounting for over 50% of all sales. From 1975 to 1984, 22 million Krugerrands were imported into the USA.

    In 1984, the U.S. Congress banned the importation of Krugerrands in protest of the apartheid policies of the South African government. Krugerrands already in the country could be bought and traded but no new coins were allowed in until 1994, when South Africa had its first democratic elections.

    Many other Western countries imposed similar import bans on the Krugerrand during the 1980’s. As a result of these economic sanctions, the sale of Krugerrands declined. It also started to face competition from other gold bullion coins.

    Due to the massive popularity of the Krugerrand, other gold producing nations decided to produce their own gold coins starting in the late 1970’s, including the Canadian Maple Leaf, Australian Nugget, the Chinese Gold Panda, the American Gold Eagle, and the United Kingdom’s Britannia.

    Despite increased competition, trade in Krugerrands remains strong today. According to the Rand Refinery, the Krugerrand is the most widely held and actively traded gold coin in the world. Some of the reasons for its continued success include the fact that it carries a fairly low premium – the price you have to pay over and above the spot price of gold – compared to other gold coins. The gold price has been rising for some time and this has also made the Krugerrand a popular investment option
     
    Last edited: Jun 28, 2017
    Blissskr likes this.
  4. mpcusa

    mpcusa "You break it you buy it" Supporter

    If you say so...LOL
     
  5. mpcusa

    mpcusa "You break it you buy it" Supporter

    By the way not to Poo-Poo all over the Maple but it came in 4th in just about everything i saw behind the Kruger, AGE, and Buffalo
     
  6. Jason.A

    Jason.A Active Member

    The Krugerrand was the most popular (as measured by coins minted and sold each year) until the divest and sanction movement against apartheid South Africa. Then, the Maple Leaf took over as the most popular (as the most heavily minted and sold gold bullion coin). More recently, the Gold Eagle has surpassed both (as measured by coins minted and sold).

    However, popularity should not be judged by previous mintage (because, obviously, more Krugerrands were minted when it was the only investment gold coin for so many years).

    Instead, we should look at current mintage of gold coins. By that measurement: The AGE is presently #1 and the Gold Maple is #2 for the last several years.

    If you have recent data showing more Krugerrands are minted than those others, please share.
     
  7. Sundance79

    Sundance79 Member

    I started with rounds and bars. Figured if I was going to buy silver I'd buy silver. Mostly 10 oz bars and and I bought two 16oz rounds. Then I switch to Silver Eagles. I was buying them by the roll. But then I switched to ATB 5oz in both rolls and PCGS slabbed singles. Now I'm moving more towards 90% silver coins (junk silver). And I pick up some US gold now and then. I reject anything foreign. Just too much foreign out there and some of it is getting pretty kooky.
     
  8. NorthKorea

    NorthKorea Dealer Member is a made up title...

    I'm pretty sure that's wrong. The Nevada tax code (inclusive of Clark County's municipal tax) states that if the value of the coin exceeds face value by 50%, it's taxable. The reason a krugerrand would be exempt from this tax is there is no face value. It's effectively a medallion and not a coin. This is also why the premiums are lower on it than actual government tender bullion.

    Speaking of Nevada... do you claim and pay the use tax when you buy bullion online from out of state?
     
  9. BlackBeard_Thatch

    BlackBeard_Thatch Captain of the Queen Anne's Revenge

  10. mpcusa

    mpcusa "You break it you buy it" Supporter

    Hey i already submitted my proof and am awaiting your,s however it,s
    Really a mute point, as everybody has there own preference, for
    Me it is and always will be the Krugerrand :)
     
  11. mpcusa

    mpcusa "You break it you buy it" Supporter

    The Britannia is a gorgeous piece though not that popular, i will be getting
    One soon, i already have the Silver version and i really like it !
     
  12. mpcusa

    mpcusa "You break it you buy it" Supporter

    Well attaching a ridiculous dollar amount to a bullion coin just to get taxed
    On it is stupid, so a 1OZ AGE is worth $50 (now who ever came up with that is retarded) and you made my point the Krugerrand is a gold coin
    With no dollar attachment so no taxes, that,s what i meant on the foreign
    Gold comment, now if you attached a dollar amount as you said there would be tax.
     
  13. NorthKorea

    NorthKorea Dealer Member is a made up title...

    Your comments made no sense in the context of what you wrote. The two main reasons why I don't like Krugerrands are:

    1) No legal tender status... anywhere.
    2) Design is horrible.

    It's basically an art round that has a country's name attached to it. I'm fairly certain that the reason behind assigning legal tender status to bullion is to make it an offense to counterfeit them.

    As for the taxation, I might be wrong on Krugerrands. Since they have no face value, they don't have legal tender status. As such, they're taxable if ANY premium is placed on them beyond the metal value.
     
  14. mpcusa

    mpcusa "You break it you buy it" Supporter

    I invest for bullion content, that,s where your missing the point ! and just
    Because you don,t like the design or think it,s ugly, that,s your issue, i like
    the coin so agree to disagree
     
  15. Jason.A

    Jason.A Active Member

    1. What you provided were not mintage numbers. You can look this up and will discover that the US mint and the Canadian mint produce more gold coins than any other mint in the world, and the main vehicle for these shipments are through Maple Leafs and Eagles. This website shows all the figures at once. You may also look them up separately through the actual mint websites if you wish: http://www.usagold.com/bulliongoldcoinsales.html 1. Eagle/Buffalo, 2. Maple Leaf, Philharmonics and Krugerrands are often 3, and Kangaroos are often after that.
    2. The phrase is "moot" point.
     
    Last edited: Jun 28, 2017
  16. mpcusa

    mpcusa "You break it you buy it" Supporter

    Was a typo (moot point) I guess the grammer police are alive and well on this
    thread....LOL

    If your comparing the Philharmonic to the Krugerrand all I can say is good luck
    That coin is not even in the same league !! I don't know one person that invests
    in that primarily and again I go back to the above coin talk article, there saying
    This not just me, by the way I had a problem with your link might just be easier
    copying and pasting like I did.
     
  17. chrisild

    chrisild Coin Collector Moderator

    Don't know how it is in the US, but in the EU the Krugerrand coins are VAT exempt. The criteria are laid down in a directive ("gold coins of a purity equal to or greater than 900 thousandths and minted after 1800, which are or have been legal tender in the country of origin, and are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80 %"), and every year a list of VAT exempt gold coins is published. The list for 2017 is here (see page 6) ...

    Christian
     
  18. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    I tried the Canadian Mint to get our grandchildren started in collecting because they have a number of interesting and collectible things for kids. After paying and waiting for months for the coins and no hope from them on restocking their inventory I had to cancel. Interestingly all the things they could not ship were readily available cheaper on eBay. Strange, but all coins directly from the RCM are off my list.
     
  19. NorthKorea

    NorthKorea Dealer Member is a made up title...

    That may be a result of no one reporting the fact that Krugerrands hold no legal tender status to the EU commissioner in their country.
     
  20. Jason.A

    Jason.A Active Member

    GrammAr. Spelled with an "a," not "e."

    "You're," not "your."

    Anyway, for someone who supposedly invests in precious metals, it should be common knowledge that Eagles are the best sellers and Maples are number two. We all know this. It is not a matter of feelings. It is not a matter of your preference or mine.

    Yes, the Philharmonic is ugly. I agree with your implication. However, it was produced in numbers similar to the Krugerrand in recent years. Why anyone would buy it, I don't know either.

    Face it, gramps, the Krugerrand is not what it once was. There may still be more of them floating around, since it was the only bullion coin for many years. However, over the last many years, annual mintage figures of Eagles and Maples are higher, because investors want those. Hence, Eagles and Maples are today's most popular gold investment vehicles.

    Be a cool kid. Buy North American gold.

     
  21. Pawnmonkey

    Pawnmonkey -----so easy even a monkey can do it-----

    Purely based on aesthetics I dislike silver Libertads. They just don't do it for me whatsoever. Maples & Philharmonics seem to have the nicest strikes.
     
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