Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
A gold monster box offers investors a cost-effective solution to buy American Gold Eagles in bulk rather than acquiring individual coins. This investment strategy allows buyers to rapidly secure a considerable amount of gold while reducing the dealer premiums associated with piecemeal purchases.
A gold monster box is a large container used to store and transport hundreds of American Gold Eagle Coins of the 1-oz variety. The coins in a gold monster box are divided into 25 protective plastic tubes with 20 coins each. That adds up to 500 coins and 500 ounces of gold in total, leading to high evaluations.
Instead of selling directly to investors, the United States Mint dispatches its coins to “authorized dealers” from which the public can buy official products. To optimize efficiency, cost, and security, the mint packages and ships these bulk orders in sizeable boxes. Although these containers have no official name, they’re known among precious metals dealers and retail investors as gold monster boxes.
Different Types of Gold Monster Boxes
The US Mint isn’t alone in offering gold monster boxes. Similarly, many government mints release gold coins in bulk containers which eventually make their way to retail investors. For example, you can find a gold monster box for Vienna Philharmonic and Canadian Maple Leaf gold coins.
Why American Gold Eagles?
The American Gold Eagle is a prime candidate for bulk investments as it’s remained one of the most popular and in-demand gold coins for decades. This coin is renowned for its timeless design derived from the famed Saint-Gaudens Double Eagle. On the obverse side, Lady Liberty stands confidently upon a hill holding a torch and olive branch with the sun rising in the background. The reverse depicts an eagle ascending into a nest where its partner and hatchlings await.
The gold purity of American Gold Eagles clocks in at 91.67%. Interestingly, all gold in these coins must be sourced from the United States. The rest of the coin’s weight is comprised of a copper and silver alloy for increased strength and durability. Although 1 oz Gold Eagles are nominally worth $50, their gold contents fetch much higher prices.
Gold Monster Boxes vs Silver Monster Boxes
There are monster boxes available for both gold and silver coins. Beyond the specific type of precious metal, the differences between these bulk purchase options are minimal. The most noticeable difference is the color of the packaging. Gold monster boxes are characterized by their distinct red tone while silver boxes are green.
Notably, silver monster boxes are more prevalent than their gold equivalents. Silver’s lower price per ounce opens the market to a broader range of consumers. Furthermore, this per-unit affordability makes silver an ideal choice for bulk purchases which contributes to the growing popularity of silver stacking.
👉 Related Read: Silver Monster Box: A Guide to Buying Silver Eagles in Bulk
How much does a monster box of gold weigh?
A gold monster box weighs around 40 pounds. These containers hold 500 Troy ounces of gold, which converts to roughly 34 pounds. When you add in the weight of the case, the 25 plastic sleeves, and other random components, you can get an additional five or six pounds.
Advantages of a Gold Monster Box
Simplified Storage
A notable benefit of investing in a gold monster box is the simplified storage solution. Properly storing 500 individual coins could be challenging, time-consuming, and risky. A gold monster box solves the issue before it arises by providing investors with a secure container with 25 separate protective tubes for further organization and protection. Whether you want to relocate or sell, the monster box acts as a perfect transporter.
High Liquidity
Gold is already a liquid asset, but monster boxes extend even more liquidity given the popularity of American Gold Eagles. Owning a gold monster box means you have 500 of the most sought-after coins in the country. These coins are easy to buy and sell individually or in any quantity based on your investment goals and financial needs. This level of liquidity leads to greater investment flexibility, allowing you to adapt and respond to changing market conditions.
Lower Premiums
Investing in a gold monster box is an effective way to secure lower dealer premiums on a per-ounce basis. Precious metals and coin dealers often offer discounts on bulk items because of the lower costs associated with storing, transporting, and managing larger shipments in contrast to individual assets. The savings can be considerable given the amount of gold contained in a monster box.
Premium Quality
A gold monster box is an official product of the US Mint containing the country’s most celebrated gold bullion coin. This impressive pedigree imbues monster boxes with a sense of prestige, reliability, and quality. Plus, gold monster boxes carry the assurance of purity and weight backed by the government, further solidifying their value, trustworthiness, and merit.
Inflation Hedge
Gold prices have an inverse relationship with the broader market, tending to rise as the dollar struggles. As a result, the yellow metal has earned a reputation as an effective hedge against the corrosive effects of inflation. The high precious metal contents of American Gold Eagles and the impressive size of gold monster boxes make this asset an excellent anchor for sizeable portfolios.
IRA Eligibility
Another crucial benefit of a gold monster box is its compatibility with retirement accounts. As an IRA-eligible coin, the American Gold Eagle can be purchased with tax-advantaged dollars as part of a precious metals IRA.
Considerations of a Gold Monster Box
Lack of Diversity
Precious metals are essential to building a well-diversified portfolio, but concentrating too much on a single metal could increase vulnerability. Due to their tremendous size and value, a gold monster box could overexpose your portfolio to a single asset type. Instead, you might consider spreading out your precious metal investments among gold and silver for a more balanced and secure portfolio.
Reporting Requirements
The Internal Revenue Service requires investors to report the purchase of bullion coins, such as those in a gold monster box. Usually, buyers must provide their social security numbers and fill out 1099 tax forms. Investors looking to optimize their privacy and anonymity through precious metals might want to consider rare coins as these investment options don’t necessitate such reporting.
High Cost
A gold monster box runs well over $1,000,000 due to the strong spot price of gold and the sheer amount of gold coins it contains. This hefty price tag is quick to alienate all but a small handful of wealthy investors.
Talk to a Precious Metals Advisor
Determining whether a gold monster box is a smart investment requires careful consideration of an investor’s unique circumstances. Working with an expert can help determine if this investment aligns with your budget, risk tolerance, and goals. The Precious Metals Advisors at SBC Gold are always willing to help! Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.