Made of pure gold or containing a portion of alloy metals for scratch resistance, gold coins are usually sold to collectors and investors. Gold has often been used as a means of money in a variety of situations. Buying gold coins is one of the many hobbies and pastimes of people worldwide. Many different factors determine the value of these coins, such as its scarcity, the age of the coin itself, the overall condition of the coin itself and the how many coins were originally created at the time that particular lot or series of coins were produced. If you are a novice gold collector or investor, it’s important to learn as much as you can about numismatic and bullion coins, the difference between the two types of coins, which coins make a good investment option and which ones should be considered for your numismatic collection. When buying gold coins, there are certain elements and things you should look for as the investment is important whether it’s a hobby or something you are seeking to diversify your portfolio with. Have a look at gold ira for more info on this.
Here is a list of 5:
- American vs. international coins – this is an extremely important factor to remember when buying gold coins. While gold is a highly sought after, an investor should consider owning coins that have lower premiums and allow for a higher return on their investment. Liquidity on the American vs. international coins varies and it is important to research the particular gold coin that you are thinking of purchasing.
- The Premium – premiums are known to be a percentage that is added to the overall value of the particular gold coin. The premium is usually determined by the distribution and the minting. This is something to consider when buying gold. Premium percentage markups can range.
- Numismatic or bullion – knowing the differences between the two is important when buying gold coins. Numismatic coins are evaluated using a grading scale and are more suitable for gold collectors rather than investors. Gold bullion value is assessed by their metal content and is the optimum investment for investors. Gold bullion can be easily converted into cash and investors usually receive a high return on their initial investment.
- Honest dealers – know who you are dealing with. Due to high levels of cons and scams, researching the potential gold coin dealer that you will be purchasing your coins from is vital. There are many fake gold bullion dealers in the marketplace and doing the necessary research will avoid later issues, problems and pitfalls.
- Where will the Gold Coins Be Stored? A major decision is where to store your coins once they are purchased. Despite the fact that gold does not tarnish, gold is still vulnerable to dents and scratches, as all precious metals are. Bank safety deposit boxes are a good place to store your gold. Choose a bank that is in strong financial condition and is relatively close to your home, in case you want to have immediate access to your coins. Floor safes are also good places to store your gold coins. By having a floor safe, the safe is not visible to potential burglars.