Gold has been used for centuries as a means of exchange and as storage of wealth. It is bought by investors as a way of diversifying risk, speculation and as a safe haven in times of economical and political uncertainty.
When investing directly in gold, people mainly look for internationally certified gold bars and gold coins. Gold bars are generally 99.999 per cent pure gold whereas gold coins can vary in purity. Both are easily exchangeable for cash at licensed gold dealers.
Gold coins are typically produced as either 90 per cent gold or 22 carat (91.7 per cent) gold, with copper and silver making up the remaining weight in each case. Bullion gold coins are being produced with up to 99.999 per cent purity. An example of this is the Canadian dollar maple leaf series. A one ounce 50 Canadian dollar maple leaf coin is a pure gold coin. Each of these maple leaf coins contains one ounce of pure gold and no other metal is added. On the other hand, many other gold coins, for instance the one ounce South African Krugerrand gold coins, are made up of 91.7 per cent pure gold. Just like the Maple leaf coin, the Krugerrand coin will still contain one ounce of pure gold, making the coin slightly larger due to the lower density of the other metal used. A Great Britain sovereign gold coin, which is popular in Malta, weighs 7.9881g, 91.7 per cent of which is pure gold.
The main difference between various gold coins is the weight and country of origin. The price of most gold coins is mainly determined by the weight of the gold content, multiplied by the market price of gold. Some limited issue coins are sold at a premium. In some rare cases the premium on such coins could run into hundreds of thousands of euros.
Gold bars usually come with a certificate of authenticity issued by the smelter. They are available in various weights and issued by various smelters. Internationally certified bars are more easily exchangeable for cash and thus are more recommendable.
W & J Coppini & Co. Financial Institution was one of the first companies in Malta to deal in gold, starting off in 1880. Since then, the pricing of the precious metal has become much more efficient, due to international trading in stock markets globally. As a financial institution with a reputation going back over a century, W & J Coppini & Co.’s main target in the gold market is to offer its clients a price closest to the market. Its network of global providers gives it access to a wide range of internationally certified gold bars and gold coins.
For more information visit W & J Coppini & Co.’s outlets or call on 2134 5412 (Sliema) and 2124 4634 (Valletta). W & J Coppini & Co. FinancialInstitution is licensed by the Malta Financial Services Authority.