You can use several methods to buy gold including bars, coins and exchange-traded funds (ETFs). Buying gold coins is one of the more popular ways to buy gold since this route is a more affordable way to buy physical gold. For example, an ounce (oz) of gold costs $1,819 while a 32-ounce gold bar would be worth $58,480 (32.15 x $1,819).
Even low exposure to physical gold can help protect your portfolio from high inflation and rising rates.
Below, you’ll learn how to buy gold coins, including Sacagawea gold coins, securely and efficiently for the most reasonable rates.
What Are Sacagawea Gold Coins?
The first Sacagawea coins were launched in the early 2000s and were in circulation until 2008. They were used as normal $1 coins.
Sacagawea dollar coins are composed of copper (88.5%), zinc (6%), manganese (3.5%), and nickel (4%). Over time, its copper components become darker, giving it a unique antique finish.
Each coin is 8.1 grams in weight, 2 mm thick and 26.5 mm in diameter. You can find these coins on sites like Amazon, making them more affordable and common than the commemorative gold and silver Sacagawea coins mentioned below.
The Scottsdale Mint created 20th anniversary Sacagawea gold coins to commemorate the original $1 coin. Each gold coin is composed of 99.9% gold and has traces of other metal like copper to keep its shape.
Besides being available as a gold coin, it’s also available as a 1 oz silver gold coin. While gold is becoming more popular, silver coins can also be a good investment since silver can hedge against inflation and can be used in multiple industries.
While this coin isn’t as famous as the American Gold Eagle coin, it could be a solid pick if you want to diversify your portfolio with gold.
Brief History of Sacagawea Gold Coins
Sacagawea was a Native American guide who helped explorers Lewis and Clark find the Pacific Northwest. She helped Lewis and Clark live off the land and acted as a translator when they dealt with other native American tribes.
Sacagawea is depicted with her son Jean Pierre on the front of each coin. On the back, these coins can have $1 or $50 signs to commemorate the original copper and brass coins.
This coin is also special since it honors the contributions that women and Native Americans have made to the U.S. There was a similar Susan B. Anthony Dollar coin that ran from 1979 through 1981, but it wasn't as popular as the Sacagawea coins.
How to Buy Gold Coins
Sacagawea coins are available on Amazon and the U.S. mint website as well as other marketplaces like eBay. If you are looking to buy coins that actually have gold in them, you can sign up for a precious metals exchange. Trusted partners like Birch Gold Group, Red Rock Secured or American Hartford Gold Group make it easy to buy these coins along with other similar products.
Each of these companies has A+ ratings with the Better Business Bureau, and each allows all types of investors to access precious metals. They’ve even earned endorsements from famous celebrities like Bill O’Reilly and Steve Forbes.
Step 1: Open an online account
It’s never been as easy to invest in multiple asset classes, thanks to the internet. With these partners, you can open an account in just 20 minutes. These companies also offer special deals to entice new investors.
If you only want to get a few Sacagawea coins, you can pick some up on Amazon. If you want to get real gold coins, you may want to sign up for a good gold exchange. These platforms let you buy gold online and have it shipped to you.
Currently, American Hartford Gold is giving all new investors free shipping when they buy gold and silver. This perk is especially important since it includes transit insurance, which protects your precious metals when they’re being sent to your address.
Buying gold and silver has many nuances that most investors overlook. Birch Gold Group gives new investors the best tips and tricks when buying gold via this free 20-page ebook. The information found in this ebook can also help you legally reduce taxes and protect your 401(k) or IRA.
Step 2: Choose the Gold Coins You Want to Buy
You can choose to buy gold or silver Sacagawea coins, which have 1 oz of gold and silver, respectively.
Regardless of the type of gold coin that you purchase, check the weight and composition. For example, Krugerrands have a 92%/8% composition of 22-karat gold to copper.
Step 3: Make your purchase
Regardless of the partner, you must call during their regular business hours to purchase, trade or sell gold coins. Each trade desk needs to confirm the order, spot price and your physical address.
These extra steps might seem like an inconvenience, but they’re necessary to confirm each detail of your order. More factors come into play when buying physical gold, like shipping costs and transit insurance compared to buying stocks online.
How to Buy Gold Coins With an IRA
You can use a self-directed IRA to invest in gold and other precious metals on a tax-deferred or tax-free (Roth) basis. By law, you must work with a custodian like the partners mentioned above to store and secure your precious metals in a physical location.
Red Rock Secured, Birch Gold Group and American Hartford Group make it easy to set up self-directed IRAs. New investors can also lock in special perks like free IRA rollovers, free insurance and storage, when working with a partner like American Hartford Group.
How to Trade or Sell Your Gold Coins
The right partner can help you trade or sell your gold coins easily and with minimal fees. Call the trading desk to connect with a professional broker. Sacagawea coins will likely be harder to sell than real gold coins, however, as they aren’t worth enough to offset shipping in many cases.
This route is much easier than finding a third party like a jeweler or cash-for-gold store. Third parties can have high commissions, which can reduce your profits.
Don’t forget to take your required minimum distributions (RMDs) if you invest with a self-directed IRA. RMDs require you to withdraw a certain percentage of your balance once you turn 72. You can also use this calculator to determine the specific amount.
Just be sure to confirm those numbers with a financial advisor, since any missteps can lead to steep tax penalties.
Current Gold Coin Prices
Gold spot prices have ranged around the high $1,700s to the low $1,800s over the last few weeks.
Gold spot prices are at $1,819 and are climbing since inflation has fallen to 7.1%.
Consider using the gold-to-silver ratio to see if it's a good time to sell gold. A high gold-to-silver ratio means that gold is overpriced, while a lower one means that gold is undervalued.
The current gold-to-silver ratio is approximately 76%, down from its 52-week high of 95%.
Are Sacagawea Gold Coins a Good Investment?
Inflation is cooling off, but recession threatens and markets have been especially volatile. Starting off gold coin trading gradually can be a good bet to help your portfolio withstand this turbulent time.
Sacagawea coins can be a good introduction to coin collecting. If you want to get into investing in real gold coins, trusted partners like Birch Gold Group, Red Rock Secured or American Hartford Gold Group will guide you through the process.
These partners also make it easy to open a self-directed IRA in 30 minutes or less. This simple step can save you significant amounts and taxes and provide an extra layer of protection.
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