Cheap Small Gold Coins 🪙2025 | Best Tips USA (15 min read)
Best Cheap Small Gold Coins
Cheap small gold coins are a type of bullion coin that typically have a low face value but a high intrinsic value based on the current price of gold. These coins are usually smaller in size than standard bullion coins and are often made from less pure gold (such as 22-karat gold) to make them more affordable for investors.
Examples Cheap Small Gold Coins
Some examples of cheap small gold coins include:
- 1/10 oz Gold American Eagles: These coins are produced by the US Mint and have a face value of $5, but they are typically sold at a premium above the current price of gold. They are 22-karat gold coins and are smaller in size than standard 1 oz gold coins.
- 1/10 oz Canadian Gold Maple Leafs: These coins are produced by the Royal Canadian Mint and have a face value of $5, but they are typically sold at a premium above the current price of gold. They are also 22-karat gold coins and are smaller in size than standard 1 oz gold coins.
- 1/4 oz Chinese Gold Pandas: These coins are produced by the Chinese Mint and have a face value of ¥50, but they are typically sold at a premium above the current price of gold. They are smaller in size than standard 1 oz gold coins.
South African Gold Krugerrands
- 1/4 oz South African Gold Krugerrands: These coins are produced by the South African Mint and have no face value, but they are typically sold at a premium above the current price of gold. They are smaller in size than standard 1 oz gold coins.
It is important to note that while these cheap small gold coins may be cheaper than larger gold coins, they are still considered a form of investment and the price of gold can fluctuate.
Where can I find good Cheap Small Gold Coins ?
There are several places where you can find good cheap small gold coins:
Government mints
Online bullion dealers: There are many online bullion dealers that specialize in selling gold coins at competitive prices. Some examples include APMEX, JM Bullion, and Money Metals Exchange. These dealers often have a wide variety of small gold coins available, and they may also offer discounts for bulk purchases.
Local coin shops: Many local coin shops also carry a selection of cheap small gold coins . They can be a good place to find more rare or unique coins, and the staff may be able to provide valuable information and advice.
Government mints: Some government mints, such as the United States Mint, the Royal Canadian Mint, the South African Mint, and the Chinese Mint, produce small gold coins. These coins are often considered to be high-quality, and they may also have historical or numismatic value.
Online auction sites: Online auction sites such as eBay and Amazon, can be a good place to find small gold coins at a discount, but you should be aware of scams, sellers with low reputation or counterfeit coins.
It’s important to research and compare prices and reputation of the seller before making a purchase.
Pawn shops
- Coin shows and conventions: Coin shows and conventions are held regularly in many cities and they can be a great place to find cheap small gold coins at a discount. These shows bring together many dealers and collectors, and you may be able to find rare or unique coins that you wouldn’t find elsewhere.
- Pawn shops: Pawn shops may also carry small gold coins, but it’s important to be aware that the prices may be higher than other sources.
- Banks: Some banks may also sell small gold coins, but their selection may be limited.
- Jewelry stores: Jewelry stores that deal in precious metals may also carry small gold coins.
To ensure you’re getting a good deal, it’s also advisable to compare prices with other sellers and check the current spot price of gold.
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Advantages of good Cheap Small Gold Coins
There are several advantages to buying good cheap small gold coins:
Potential for appreciation
- Affordability: Small gold coins are generally more affordable than larger gold coins, making them accessible to a wider range of investors. They also have a lower entry point, making them a good option for those who have a limited budget.
- Diversification: Gold has a low correlation to other asset classes, such as stocks and bonds, making it a good way to diversify an investment portfolio. Cheap small gold coins allow investors to add a small amount of gold to their portfolio without a large financial commitment.
- Liquidity: Small gold coins are highly liquid, meaning they can easily be bought and sold in the market. They are also easy to store and transport, making them a convenient option for investors.
- Hedge against inflation: Gold has traditionally been seen as a hedge against inflation, as its value tends to rise when the value of money falls. Small gold coins can provide investors with a way to protect their wealth from inflation.
- Potential for appreciation: Cheap small gold coins have the potential to appreciate in value over time, especially if they are rare or have historical or numismatic value.
- Hedge against currency fluctuations: Gold is not tied to any specific currency and thus, it can be a hedge against currency fluctuations.
- Flexibility: Small gold coins offer more flexibility than larger gold coins, as they can be bought and sold in smaller quantities. This allows investors to make small adjustments to their portfolios as needed.
Potential for profit
- Easy to store: Small gold coins are easy to store, and they can be stored in a variety of ways, including in a safe deposit box, a home safe, or in a depository.
- Portability: Small gold coins are highly portable, making them easy to transport and take with you when traveling. This can provide peace of mind for those who are concerned about the safety and security of their investments.
- Tax benefits: In some countries, small gold coins may be eligible for special tax benefits, such as being exempt from capital gains tax. It’s important to consult with a tax professional to understand the tax implications of investing in cheap small gold coins.
- Potential for profit: As with any investment, small gold coins have the potential to appreciate in value over time, which can result in a profit for the investor.
- Hedging against market volatility: the precious metal gold can act as a hedge against market volatility, as the price of gold tends to be less affected by the ups and downs of the stock market.
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Disadvantages of Cheap Small Gold Coins
While there are many advantages to buying good cheap small gold coins, there are also some potential disadvantages to consider:
Premiums
- Premiums: Small gold coins may carry a higher premium than larger gold coins, which can eat into potential profits. Premiums are the amount added to the gold’s spot price to cover the cost of production, distribution, and dealer’s markup.
- Volatility: The price of gold can be volatile, and cheap small gold coins are subject to the same fluctuations as larger gold coins. This means that the value of small gold coins can fluctuate significantly, which can result in losses for investors.
- Counterfeit risk: There is a risk of counterfeit small gold coins, which can be difficult to detect. It’s important to only buy small gold coins from reputable dealers and to have them authenticated by a professional numismatist before making a purchase.
- Storage and insurance: Cheap small gold coins must be stored and insured, which can add to the overall cost of owning them.
- Limited liquidity: while small gold coins are highly liquid, they may not be as liquid as other assets such as stocks, bonds, and real estate. This means that it may take longer to find a buyer for your small gold coins and that you may have to accept a lower price than what you paid for them.
- Risk of theft: Small gold coins are a physical asset, and as such, they are subject to the risk of theft. Storing them in a safe deposit box or a home safe can help minimize this risk, but it can never be completely eliminated.
- Limited flexibility: Small gold coins may not be as flexible as other investments, such as stocks, bonds, or real estate. They are a physical asset and therefore, they can’t be easily divided or sold in small amounts.
Limitations
- Limited potential for appreciation: While small gold coins may have the potential to appreciate in value over time, this potential may be limited compared to other investments such as stocks, which can offer higher returns.
- Limited use: Small gold coins are primarily used as an investment and a hedge against inflation, rather than for everyday use or consumption.
- Limited divisibility: cheap small gold coins may not be as divisible as other forms of gold such as gold bars or exchange-traded funds (ETFs). This means that if an investor wants to make a small purchase, they may have to buy a whole coin rather than just a small piece of one.
- Limited numismatic value: Not all small gold coins have numismatic value, or the value attributed to a coin because of its historical, rarity, age, condition, or other unique attributes. This means that small gold coins that are not rare or have historical significance may not appreciate in value as much as those that do.
- Limited tax benefits: In some countries, small gold coins may not be eligible for the same tax benefits as other investments, such as being exempt from capital gains tax. It’s important to consult with a tax professional to understand the tax implications of investing in small gold coins.
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Alternatives for Cheap Small Gold Coins
Gold savings accounts
- Exchange-traded funds (ETFs): ETFs are a type of investment fund that can track the price of gold. They offer a convenient way to invest in gold without the need to store or insure physical coins.
- Gold bars: Gold bars come in a variety of sizes and can be a more cost-effective way to invest in gold compared to cheap small gold coins. They can also be easily bought and sold on the market.
- Gold savings accounts: Some banks and financial institutions offer gold savings accounts, which allow you to save in gold rather than in cash. This can be a convenient way to invest in gold without the need to store or insure physical coins.
- Gold mining stocks: Investing in gold mining stocks can offer potential for higher returns than investing in physical gold, but it also carries more risk as the performance of the company and the gold market can affect the value of your investment.
- Gold-linked savings plans: Some savings plans allow you to invest in gold through a savings plan. This can be a convenient way to invest in gold without the need to store or insure physical coins.
- Gold options or futures contracts: Investing in gold options or futures contracts can allow you to speculate on the price of gold without owning physical gold. This carries more risk than investing in physical gold and it’s not recommended for retail investors.
Collectible gold coins
- Digital gold: Digital gold platforms allow you to buy and store gold in digital form, which can be more convenient than physical gold and eliminates the need for storage or insurance.
- Gold-plated jewelry: Some investors choose to invest in gold-plated jewelry as an alternative to cheap small gold coins. The value of this type of investment may be affected by the gold content of the jewelry and the condition of the piece.
- Collectible gold coins: Collectible gold coins can have numismatic value and can appreciate in value over time, but it’s important to be aware that their value may be affected by the rarity, age and condition of the coin, as well as the market demand.
- Gold-backed cryptocurrencies: Some cryptocurrencies are backed by gold, which can provide a way to invest in gold without the need to store or insure physical coins. However, it’s important to be aware that the value of these cryptocurrencies is highly speculative and subject to market volatility.
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No action with Cheap Small Gold Coins
If you don’t take action as an investor in cheap small gold coins, several things can happen:
Inflation hedge
- Opportunity cost: If the price of gold rises and you have not invested in small gold coins, you may miss out on potential profits. This is known as opportunity cost, which is the cost of not taking action.
- Inflation hedge: Gold has traditionally been seen as a hedge against inflation, meaning that its value tends to rise when the value of money falls. If you don’t invest in small gold coins, you may not have this protection against inflation.
- Diversification: Gold has a low correlation to other asset classes, such as stocks and bonds, making it a good way to diversify an investment portfolio. If you don’t invest in small gold coins, you may not be able to diversify your portfolio as effectively.
Risk of being left behind
- Limited potential for appreciation: cheap small gold coins have the potential to appreciate in value over time, especially if they are rare or have historical or numismatic value. If you don’t invest in small gold coins, you may miss out on this potential for appreciation.
- Risk of being left behind: As more and more investors invest in gold, the demand for small gold coins may increase, which can drive up their prices. If you don’t invest in small gold coins, you may be left behind as their value appreciates.
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Case studies with Cheap Small Gold Coins
We can provide you with some general information on what could happen if you invest in cheap small gold coins in different scenarios:
Different scenarios
Scenario 1: You invest in cheap small gold coins during a period of economic recession. As investors become more risk-averse, the demand for gold increases, driving up the price of gold and potentially resulting in profits for the investor.
Scenario 2: You invest in cheap small gold coins during a period of low inflation. As the rate of inflation remains low, the value of gold may not increase as significantly, resulting in lower potential profits for the investor.
Scenario 3: You invest in cheap small gold coins during a period of geopolitical instability. As investors become more concerned about the stability of the global economy, the demand for gold increases, potentially resulting in profits for the investor.
Scenario 4: You invest in cheap small gold coins that have a high numismatic value and rarity. The coin’s value may appreciate more than a common coin, making the investor earn more.
Scenario 5: You invest in cheap small gold coins that have a low numismatic value and rarity. The coin’s value may not appreciate as much as a rare coin, making the investor earn less.
Market conditions
Scenario 6: You invest in cheap small gold coins that are counterfeit, it can lead to a total loss of investment and legal issues.
Scenario 7: You invest in cheap small gold coins and hold them for a long time, waiting for their value to appreciate. In this case, the investor may earn more than if they had sold them immediately, but it also depends on the market conditions.
Scenario 8: You invest in cheap small gold coins, but the investor doesn’t do proper research, check the coin’s condition, compare prices and reputation of the seller, and not consulting with a professional numismatist or a financial advisor. The investor may not make a good decision, and the investment may not be profitable.
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Differences between Cheap Small Gold Coins and others investments
- Physical vs. non-physical: cheap small gold coins are a physical investment, while other investments such as stocks and bonds are non-physical.
- Storage and insurance: Small gold coins require storage and insurance, while other investments such as stocks and bonds do not.
- Liquidity: Small gold coins are highly liquid, meaning they can easily be bought and sold in the market, while other investments such as real estate may be less liquid.
- Diversification: cheap small gold coins can be used to diversify an investment portfolio, while other investments such as stocks and bonds may not offer the same level of diversification.
- Tax benefits: In some countries, small gold coins may be eligible for special tax benefits, such as being exempt from capital gains tax, while other investments may not have the same tax benefits.
- Potential for appreciation: Small gold coins have the potential to appreciate in value over time, especially if they are rare or have historical or numismatic value, while other investments such as savings accounts may not have the same potential for appreciation.
- Hedging against inflation: Gold has traditionally been seen as a hedge against inflation, while other investments such as stocks and bonds may not offer the same level of protection against inflation.
- Risk: Cheap small gold coins are considered a relatively low-risk investment, while other investments such as stocks and options carry a higher level of risk.
- Low-return investment: Small gold coins are considered a relatively low-return investment when compared to other investments such as stocks or real estate.
- Flexibility: cheap small gold coins may not be as flexible as other investments, such as stocks, bonds, or real estate, which can be easily divided or sold in small amounts.
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