Foreign Government Gold Coins

There are several options for investors looking at buying bullion coins other than their domestic coin such as the American Gold Eagle. Coins minted from foreign governments include The Canadian Maple Leaf, Australian Nugget, Australian Lunar Series, Mexican Libertad Onza, British Gold Britannia, Gold Guernsey, Islamic Dinar, Russian Imperial or Rouble, Chinese Panda, Austrian Philharmonic, and the South African Krugerrand.

Unless you are a collector, the investor should stick with his or her domestically minted coin then move to the staples such as the Canadian Maple Leaf or the South African Krugerrand because of the well know status these coins command. There is, however, two new risks with any foreign minted coin: being fake and liquidity risk.

When buying any of the coins mentioned above it’s extremely important to buy from a reputable dealer to avoid the risk of buying a fake coin. If you’re buying on eBay check the seller’s feedback score and use Paypal, so if anything does go wrong you can get money back. If you’re buying on-line check to see if there’s an address, phone number, and any testimonials or reviews.

Some words about liquidity risk. There’s a risk that when it comes time to sell, these types of coins can be much less liquid (harder to sell) because of the lower investor demand. For example if you wanted to sell your American Gold Eagle, the liquidity risk is almost zero because of the large number of investors willing to buy. On the other hand if you wanted to sell your Mexican Libertad Onza it might take longer to find a willing buyer. Foreign minted coins can be an excellent investment, but only for a more sophisticated investor.

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