Quick Facts about Gold Bullion Coins
Gold bullion coins are pieces of investment-grade physical gold minted by a sovereign government. Because of this, they carry a face value and are legal tender in their country of origin. However, this face value is entirely symbolic because their actual market value is tied to the global market spot price of gold. The legal tender status is simply a government guarantee of exact weight, purity, and authenticity of the coins.
Common Gold Bullion Coins Sizes
Gold bullion coins such as Canada Maple Leaf are denominated in troy ounces (troy oz), with 1 oz being the most popular among investors. Other fractional sizes are 1/2 oz, 1/4 oz, 1/10 oz, and 1/20 oz. Some coins are denominated in metric grams.
Purity of Government backed investment-grade gold bullion coins
Most investment-grade gold bullion coins such Canada Maple Leaf and Austrian Philharmonic have a purity of 999.9 fine gold. America Gold Eagle and South African Krugerrand have a purity of 916.67 fine gold.
Frequently Asked Questions
1: Do 999.9 fine gold coins worth more than 916.67 fine gold coins?
No. Both coins contain the same amount of pure gold : 1 troy ounce of 999.9 fine gold. However, due to differing purity levels, the 999.9 fine gold coin weighs 31.10 grams, while the 916.67 gold coin weighs 33.93 grams.
2: Should I clean my gold coins if they look tarnished or dirty?
No, you should never clean gold coins. Rubbing a coin with cloths, polishing compounds, or abrasives creates hairline scratches that significantly lower its resale liquidity and value.
3. How should I handle physical gold bullion coins?
Gold is a malleable element that damages easily. Always handle coins by their edges. Avoid removing them from their protective plastic capsules.
4: What are the popular 999.9 fine gold bullion coins?
Canada Maple Leaf
Austria PhilharmonicÂ
UK Britannia
China Panda
Australia Kangaroo
Australia LunarÂ
5. Do I need to pay Goods & Service Tax (GST) for investment-grade gold bullion coins in Singapore?
Only coins with a mininum purity of 999.0 fine gold qualify as Investment Precious Metals and are exempt from Goods and Services Tax (GST). More information available here.