Q: As an American considering retirement in Panama, whose currency is pegged to the USD, would you recommend that I purchase Gold coins minted by the US Government or bars minted by private mints?
A: Being in the physical precious metals market for more than 11 years, I have gotten this question numerous times in various forms covering various questions. Let’s analyze a few considerations.
– American Gold Eagles and American Silver Eagles are the most recognized government minted bullion coins in the world. Their popularity is associated with the popularity of the United States dollars. The advantage of buying the most popular coin can be analogized to buying an Apple laptop computer. Because of it’s visibility and demand, the international market has an appetite making a resale and an appraisal much easier than less known coins. Additionally because of the US Mint stamp, this coin is less likely to be melted for its gold content and maintain it’s premium over a simple gold bar.
– Going to Panama makes an interesting case study because the appraised value of the coin in the United States and Panama will fall in the same range. If you were going to countries under the EU, or countries were the dollar is stronger, your valuations may indeed be affected by the current temperature of the exchange rate. But for many US travelers, this is a great appeal. I have clients that prefer to travel with coins as they feel they are presented with better exchange rates for their gold in times of economic turmoil. You can find a list of global gold to currency exchange rates here.
– Depending on how you transport the metals, there may be taxes or fees or duties that should be considered.
– Learn more about the demand for gold and silver around the world and which countries are using the metal for uses other than jewelry.
Conclusion: Consider the premium charged for US minted coins not as a loss, but a placeholder of value. If you choose to purchase privately minted coins or bars for international consideration research the more popular names to ensure that your value crosses borders and you can avoid getting less than the full value of your exchange.