Physical gold in your possession or your IRA is the only true way to own gold for diversification and wealth preservation. The classification of a gold coin is relatively simple. Gold coins fall into three major categories. A gold coin can be a bullion coin that is based on its weight and purity and minted after 1986 here in the United States to the present day. Bullion coins can also be from a foreign mint like Canada, Australia, Austria, or the United Kingdom. A gold coin can be numismatic thus being a gold coin that was minted before 1933 and fall into the category of a collectible. A gold coin can also be a proof coin which can also be viewed as a souped-up bullion coin.
One of the most frequent questions we receive at Midas Gold Group is which gold coin is best for me? Should I consider a bullion coin, a numismatic coin, or a proof coin? A bullion coin is a coin in which you get the most gold for your money in coin form. If the price of gold goes up, the bullion coin typically goes up in a somewhat proportionate way to the price of gold. A numismatic coin costs more to own, but in a good gold market, these collectibles have typically gone up by a much larger percentage than the gold price. A proof coin typically holds some of the same characteristics of both bullion and numismatics. The most popular of all the proof coins is the Proof Gold American Eagle. The Proof Gold American Eagle is referred to as the Rolls Royce of bullion.
The craftsmanship is superb
The presentation of the Proof Gold American Eagle is spectacular. The coin itself is in a plastic capsule and inside a blue velvet box. The coin has never been touched by human hands. The front of the coin depicts Lady Liberty from the Augustus Saint-Gaudens design from 1907. The back of the coin or the reverse of the coin shows a family of eagles with the male eagle carrying an olive branch and flying above a nest containing a female eagle and hatchlings. A type 2 Gold Eagle was introduced in 2021 with a slightly different reverse but it still has the same front. The US Mint does a very nice job with the Gold and Silver Eagle. The Gold Buffalo, which also comes in proof, is also a spectacular gold coin for wealth preservation.
The Proof Gold Eagle comes with a Certificate of Authenticity
A typical bullion coin from a government mint does not come with a certificate of authenticity. A Proof Gold American Eagle does come with this reassurance. The certificate states that this proof coin is minted at West Point Bullion Depository, has a diameter of 1.287 inches, is .113 inches thick, is .9167 in purity, and contains 3% silver and 5.33% copper. It states that the front of the coin was designed by Augustus Saint-Gaudens, and the reverse was designed by Miley Busiek and Sherl J. Winter. Type 2 artists include Renata Gordon and Jennie Norris.
The quality of the Proof Gold Eagle is second to none
Proof by definition for coin grading is a coin usually struck from a specially prepared coin die on a specially prepared planchet. A planchet is a flat disk of metal ready for stamping and is also referred to as a coin-blank. Proofs are usually given more than one blow from the dies and are usually struck with presses operating at slower speeds and higher striking pressure. Proof coins feature plenty of shine and much more detail than a regular bullion coin. By appearance, the Proof Gold American Eagle is the Rolls Royce of Bullion.
Proof Gold Eagles have certain Gold IRA benefits
The Gold Bullion Coin Act of 1985 authorized the US Mint to strike and issue legal tender gold coins in four denominations. The Proof Gold American Eagle comes in one-ounce, half-ounce, quarter-ounce, and tenth-of-an-ounce sizes. Proof sets frequently come in 4-coin and 2-coin sets. Proof Gold American Eagles are taxed in an IRA at melt value when doing an IRA distribution. The value of these coins is much more than that. The IRA tax advantage for some investors will be realized when their coins are sold privately after they are taken out of the Gold IRA by distribution.
They are much rarer than bullion Eagles
Typically the US Mint produces over 500,000 1oz bullion Gold Eagles annually. In comparison, the number of Proof Gold American Eagles is much less. It has not been uncommon to see only 30,000 to 50,000 1oz Proof Gold Eagles made annually. As you can see with supply and demand, a strong gold price can cause the premiums on the Proof Gold American Eagle to expand dramatically. The premiums have expanded dramatically since Joe Biden took office at the end of 2020 as the demand for physical gold increased and the supply of Proof Gold American Eagles is tight.
Eventually, a bubble becomes a bust. Inflation is the worst we have seen in 40 years. Interest rates are rising and asset prices of stocks, bonds, and real estate are falling. Federal government debt is over $31 trillion and growing over $3.8 billion per day. US total debt stands at $93 trillion. Energy prices are pausing and getting ready for their next leg up. Many investors over the next ten years will be wiped out if they continue to speculate on high-risk assets. Will we crash, then head to recession and even depression? What is our leader’s solution to this problem? Ah yes, let’s spend and print more to keep this baby rolling. I think I will diversify and pull some money out of this financial system while I still can. The Rolls Royce of bullion, the Proof Gold American Eagle, is one place I can hold some of my wealth until the dust settles. Defense and wealth preservation is much more important now than playing speculation hero.