There are plenty of good reasons to make coins a part of your overall investment portfolio. Gold and silver coins have a tendency to increase in value during times when other types of investments decline, so making coins a part of your portfolio can help keep your total investment portfolio stable. Coins are also an investment that you can keep to yourself – no one needs to know that you have them if you don't want them to. And in the unlikely event of a drastic currency devaluation, you would be able to use the coins to buy and sell. However, not every coin out there is a good investment. Take a look at some tips that can help you make smart choices when it comes to investing in coins.
Don't Buy From the Shopping Channels
The commemorative coins and limited edition coins that you see on television aren't being sold by coin dealers, they're being sold by retailers. As a result, the prices for these coins are based not on their value as an investment, but instead based on what shoppers might be willing to pay for them.
You should always do your research before buying any coins. The spot price of gold and silver – that is, the current going rate for an ounce of gold or silver – fluctuates daily. If you're looking to buy, your first steps should be to look up the current spot price, then find the dealers that are selling coins priced as close to the spot price as possible. You may be able to find the same "as seen on TV" commemorative coins on sale from a dealer online, such as Penny Pincher Coins & Jewelry, or in person for far less than you could order them from a shopping channel.
Don't Buy Modified Coins
Sometimes, you'll come across coins for sale that have been modified with stickers or colored paint. These coins may have started out as genuine investment pieces, but serious coin collectors and dealers consider them damaged because of the glue and paint, and you'll find it difficult to sell them for any kind of profit.
Valuable coins should be treated with extreme care – you shouldn't even touch the face of the coin with your fingers, because the oils on your hand can tarnish the surface of the coins. If fingerprints are enough to decrease the value of the coin, can you imagine how damaging paint might be? A modified coin may be fun to look at, but it should never be considered an investment.
Do Know Which Coins Make Good Investments
It's fun to think about finding a very rare coin worth thousands of dollars – but the likelihood that you'll stumble upon such a coin is fairly low, and even if you do, they aren't necessarily the best investment. Rare coins have numismatic value – that is, value over and above the value of the metal they're made of because of their historical value or attractiveness to serious collectors. However, there's no guarantee that you'd be able to find a collector willing to pay for that numismatic value if you needed to sell in a hurry. When buying coins for an investment, it's best to focus on factors like the weight of the coin and the purity of the gold. That means looking for bullion coins.
The Canadian Gold Maple Leaf, with a gold purity level of .9999 is a great example of a good investment coin. These come in sizes ranging from one-tenth of an ounce to an ounce, and are highly sought after in North American coin markets. The American Gold Eagle, made of 22 karat gold, and the American Gold Buffalo, made of 24 karat gold, are also good investment coins, especially within the United States. The South African Krugerrand was once a top choice for investors all over the world, and its popularity actually prompted other governments to produce their own gold bullion coins to compete. The coin remains a popular choice for investors.
If you're serious about rounding out your portfolio with coins, learn to identify good investment coins and reputable dealers. That way, you can make a handsome profit by buying and selling gold or silver coins.
Share30 December 2015
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