The coins listed here are not ranked in any particular order. Historically, they have been among the most famous. Each copy remained in demand for decades.
American Eagle, 1 Oz, $50
The American Eagle Series, first released in 1986, has been a hit with investors. The two main reasons are the high purity of the gold contained and the relatively low prices compared to the spot price.
American Eagles are available in four different sizes. However, the 1 oz. gold coin mentioned here provides the best value for money for investors.
The Eagle contains one troy ounce of gold with a fineness of 0.9167 and has a face value of $50 dollars. Like all gold coins offered in this investment series, the specimen is official legal tender. Although, of course, it would be reckless to give away this valuable gold coin at its face value.
It is at least one of the gold investment coins most often included in investment portfolios. Due to its outstanding popularity in the world of finance, it is highly liquid and therefore offers an excellent return on investment.
The demand for gold led to a shortage of coins in Russia
Against the backdrop of the pandemic crisis and turmoil in the financial markets, Russians began to look for new investment instruments. Wealthier Russians are increasing their investments in exchange-traded gold – in other words, shares of specialized “gold” funds.
Those who are poorly versed in exchange instruments or do not have brokerage accounts are also actively shifting their savings into gold. So, in Promsvyazbank in the spring-summer period, the inflow of funds into depersonalized metal accounts (OMS) increased by 15%, and the demand for gold coins jumped by 20%, Prime agency reports.
The interest of Russians in gold can be understood: six months ago, gold futures on the exchange
Analysts interviewed by Gazeta.Ru noted that, in general, it is always necessary to have gold savings, therefore, in a broad sense, there are no ideal or bad moments for buying precious metals. And it’s not just about gold.
Alexander Oskin, an analyst at Freedom Finance’s Russian stock market trading department, notes that the demand for gold and assets in gold will continue to grow in the coming years. The current increase in prices and demand for gold and assets in gold seems to be a stable trend, due to the soft or super-soft monetary policy of the world’s leading countries over the past 12 years.
“In terms of estimates based on the dynamics of indicators that reflect the dynamics of the commodity and money supply, the target level for gold prices for the next one to two years is $2,500 per ounce in the base case,” the analyst said. “Positive and negative, for the gold market, scenario options within this rating system for the next year with a 60% probability are $1,700 and $3,150 per ounce, respectively.”
The interlocutor of Gazeta.Ru from Alary Gold agreed with the expert’s opinion. The representative of the company noted that about 10-15% of savings should be kept in physical gold, and first of all in gold coins.
“Coins have a lot of advantages: no VAT for legal tender. Coins are more liquid than bullion. They can be sold to a wide range of individuals and legal entities. The loss of a certificate for an ingot threatens with the loss of the possibility of its sale”,
– explains the representative of Alaric Gold.
Ru noted that, in fact, a kind of deficit has formed on the market of coins made of precious metals.
“In March 2021, Alaric Gold sold out all the gold and silver coins. There has never been such a rush demand in the four years of the company’s operation on the Russian market, – the company representative is surprised. “The gold coins “George the Victorious” (Russia), “Philharmonic” (Austria), “Britain” (Great Britain), all weighing one troy ounce (31.1 grams) are in especially high demand.”
There are cheaper options
In an interview with Gazeta.Ru, a representative of Alaric Gold said that gold, in his opinion, is quite expensive today, so silver coins are also a very interesting way to protect part of the funds from negative trends in the economy.
The fact is that now gold to silver in dollars is quoted at 1 to 79 – this is a rather high gap, and it will be reduced to 1 to 50.
“Silver reserves in the world will last for 30 years. This metal is waiting for a very serious rise in price,” the expert explains.
However, Alexander Osun of Freedom Finance pointed out some of the risks associated with physical gold. According to the expert,
the main advantage of the precious metal, in the form of the same coins, is the ease of purchase. However, when selling, the buyer may require an independent examination of the coins. Of course, it’s not free.
“In addition, the mark-up reflecting the artistic and numismatic value of the coins is relatively high. The cost of the coins is approximately from 10% to several tens of percent higher than the cost of the precious metals from which they are made,” added Alexander Osun, specifying that the presence of artistic and numismatic value represents an additional risk for the investor.
Inflation Protection
In general, both experts agreed that gold coins represent a kind of protection against inflation.
“Gold and silver will rise in the long term. Any risks in the global economy will again push the precious metals quotes up. Dollars, euros and rubles can always be printed, while gold and silver reserves are limited,”
Alexander Osin from Freedom Finance nevertheless noted that gold prices react with their dynamics not so much to inflation itself, but to the factors that determine the dynamics of consumer and production prices in the economy.
“The real average increase in the price of gold year on year in US dollars since 1968 is 6%. But over these 52 years, there were quite long periods when gold grew in price more slowly than inflation, correcting certain technical or fundamental factors with its price dynamics,” the expert explains.
So, in fact, the main advice for those who decide to transfer their funds to gold is not to transfer all available funds into it. A much more competent solution would be to create a “basket” of investments to protect against economic risks in general.
