Learn About Gold Bullion
Augusta Precious Metals is proud to present the world's purest and most popular gold coins and bars for those who want to invest in gold bullion.
When the term gold bullion is used, it most commonly refers to solid gold bars or ingots. However, technically, certain coins are pure enough to be considered gold bullion. The most common use of gold bullion is for trading on a market, such as the U.S. stock market. Individual investors who decide they want to have more control over their investments as compared to paper stocks and bonds often purchase gold bullion coins as their investment of choice.
Gold Bullion for Investment Must be Pure
To be considered suitable for investment, any bars, ingots or gold coins must meet certain standards of purity. In fact, the word bullion comes from the French word bullion, which means boiling – the process a melting house uses to accomplish purity. Coinage-mints and assay offices acquire gold from many different sources, then they refine it to different classes of gold bullion.
To determine the purity of gold bullion, certain standard assay methods are used by all coinage-mints and assay houses. One of the most trusted methods of determining the purity of ore is a centuries-old process called fire assay. The same process is used to check purity of gold bullion by taking samples of the bullion and subjecting them to any of several scientific tests. The gold can sometimes be refined in the melting pot as it is being assayed.
When it comes to gold bullion, the precious metals industry uses a fineness number or a percentage of 100% purity. For example, gold coins rated at a fineness of 9999 are considered to be 99.9% pure. Coins rated as 9950 are 99.50% pure. Banks and other large institutions usually deal in 400 oz gold bars that are at least 99.5% pure. In the precious metals retail investment industry, individual investors prefer gold coins that are 99.99% pure. This makes them worth slightly more per ounce.
Precious metals purer than 99.99% usually only are used in scientific and industrial equipment that involves electrical and mechanical processes dependent on high purity. Today’s frequent use of gold in industry, especially the electronics and medical fields, is one of the factors that continually drives the price of gold and silver higher.
Gold Coins in a Physical Gold IRA
Regulations of the United States Internal Revenue Service allow certain alternative investments with an IRA custodian. This is called a self-directed IRA. The Internal Revenue Code mostly designates what a self-directed IRA cannot invest in, rather than specifying what investments are allowed.
Physical, tangible precious metals, including gold bullion and gold coins are permitted investments under these regulations. Both bullion and coins must meet a standard of fineness to be included in a self-directed IRA. Allowable bullion must be produced by an approved refiner. Precious metals within an IRA are usually held by a third-party custodian and must be physically stored with a trustee.
For more information about Augusta’s gold IRA services, visit this page.
The Value of Gold Coins
As with any gold bullion, the value of a bullion coin is based on its gold content and the weight of the coin. Coin prices fluctuate depending on the daily price of gold in the world’s currency and investment markets. Each coinage-mint that produces gold coins guarantees their precious metal content. Because coins from foreign mints may not have been produced using the same purity standards as U.S. coins, the purity of these coins can’t be guaranteed.
American Eagles and the American Buffalo coin are specifically identified as allowable in IRS code, but other gold coins, because they are not disallowed, are considered allowable as long as they meet purity standards.
For more information about gold bullion and gold coins, call one of Augusta’s friendly and knowledgeable account executives at 800-700-1008. Learn how specific IRS-approved gold bullion products can be used in a self-directed physical silver or gold IRA. We are happy to answer all your questions with no obligation to buy!