Why Invest in European Gold Coins?

Investors looking for hard assets have seemingly endless options when it comes toinvesting in precious metals. Certain coins have remained perennial favorites, whileothers have been somewhat overlooked. European gold coins fall into the latter category,creating an excellent opportunity for savvy investors.

Benefits of European Gold Coins

Purchasing precious metal bars and coins has grown increasingly popular in a downeconomy. While all precious metals make fine investments, European gold coins offer severalcomparative benefits:

• High gold content: The vast majority of European gold coins containat least 90% gold. They still weigh just under 1/5 oz, making them extraordinarilyeasy to transport.
• International recognition: Since these coins are known throughoutthe world, they are easy to trade. That liquidity and broad market are distinctassets.
• Rising prices: The price of European gold coins grows with theprice of the gold, which has consistently and steadily risen, in contrast to otherinvestments.
• Greater scarcity: Many European gold coins minted before WorldWar I actually entered circulation, making high-quality coins scarcer and thereforemore valuable.

Ultimately perhaps the greatest advantage that European coins afford is their lackof reputation among investors. Most have heard of Krugerrands or Canadian Maple Leafs,but the British Sovereign, French Angel, French Rooster, and Swiss Helvetia remainuntapped resources. They still carry reasonable premiums and have the same exceptionalquality as their more famous counterparts.

Investors’ “Secret” Favorites

Both investors and collectors find something to love about European gold coins,because of the rich history they bear. Four coins have enjoyed steady interest amonginvesting insiders:

• British Sovereigns: First minted in 1489, British Sovereigns eventually set thegold coin standard adopted by England and United States. The coins’ purity was setat 22 carats, or 91.67% gold. Minted until the US and Britain left the gold standardduring World War I, the British Sovereign has been reissued at various points throughoutthe twentieth century, but is currently only produced as a bullion coin.
• French Angels: The French Angel design originated in 1789, during the French Revolution, but wasnot adopted for coinage until 1871. Produced until 1898, the French Angel gaineda reputation as a “lucky” coin. These coins are certainly scarce, but brilliantuncirculated samples still occasionally emerge.
• French Roosters: Perhaps the most common gold coins from Europe,French Roosters were minted from 1899 to 1914. The coins’ greater availability meanslower premiums, so French Roosters are an affordable option for investors.
• Swiss Helvetias: Helvetias enjoy an outstanding reputation formaintaining their value, due to their association with the stability of the Swisseconomy. Sometimes called “Vreneli,” Swiss Helvetias have gained popularity for their exceptional beauty andhigh gold content.

Precious metals continue to make wise investments, and European gold coins haveset themselves apart in the market for superlative quality and value. British Sovereigns,French Angels, French Roosters, and Swiss Helvetias, though often overlooked, makefine choices for investors.

This information is provided for general reference purposes and does not constitute professional advice.