When it comes to investing, gold is always a popular choice. And for good reason – it’s a valuable resource that has held its worth for centuries. If you’re thinking about buying your first gold coin, here are three things you should know before you do.
1. The Value Of Gold Coins
This may sound like a no-brainer, but it’s important to remember that the value of gold coins and other precious metals is entirely subjective. What you consider valuable another person might not. You can look at www.npmex.com to see how different gold coins are valued. In some cases, this can have serious implications – certain gold coins have been melted down so many times they now contain very little actual gold. In one case, a coin was once thought to be worth $7,000 – but when the owner brought it in for appraisal he found out that its value had dropped to just fifty cents!
Gold Coins Can Decrease in Value
Gold coins are made from a valuable substance – which means that over time they will decrease in value as gold prices drop. For example, the price of gold dropped by about half between 1980 and 2000, which means that gold coins from this period are worth considerably less than earlier coins. Many people keep these types of coins to sell them later when prices rise again.
Gold Coins Can Increase in Value
While many gold coins will decrease in value over time, there are still many coins that will increase in value. Coins made before 1933, for example, are almost always worth more than the market rate – making them great for collectors. Also, if you can find an error coin (i.e. a coin with a printing mistake) then it may become incredibly valuable over time.
Gold Coins Are Not Always Pure Gold
Most pure gold coins are 24 karats or 99.9% pure gold. However, you may come across another form of gold called 24 kt white gold, which is not quite as valuable. If you do find a pure gold coin, watch out for fakes! There are certain ways to identify counterfeit coins, but if you’re unsure it’s best to seek expert help.
2. How Much Gold Coins Cost
The price of gold coins will vary depending on the type of coin. Gold coins made before 1933, for example, are almost always worth more than the market rate – making them a great investment. Also, if you can find an error coin (i.e. a coin with a printing mistake) then it may become incredibly valuable over time. Error coins from the US mint can be worth anywhere from three to ten times face value. However, not all gold coins are expensive – some coins have been melted down so many times they now contain very little actual gold and therefore cost very little in comparison to earlier coins that were made in their image. Regardless of how much original gold remains, however, you should never expect to buy a gold coin for under $50.
Rare Coins are Expensive
Just because a coin is rare does not mean it’s worth thousands of dollars – it may simply be highly sought after. For example, the Buffalo Nickel was printed in large quantities between 1913 and 1938 with only three basic designs by James Earle Fraser. These coins are relatively easy to find and can be bought for around $50. On the other hand, the 1933 Saint-Gaudens Double Eagle is one of the most sought-after gold US coins made before 1933 – especially with an estimated 10,000 thought to have been melted down after being deemed illegal under Roosevelt’s Gold Reserve Act of 1934. This means that any authentic Saint-Gaudens double eagle will cost you quite a bit more than $50 – maybe even as much as $20,000.
3. How To Buy Gold Coins
If you’re firm on your decision to buy gold coins, there are several things you should know before doing so. First, make sure you know the difference between BU (brand new) and Proof (minted for collectors) gold coins – many people think that BU means ‘uncirculated’ but it just means that the coin has never been used as currency. Buying proof can be more expensive but well worth the cost because of the coin’s rarity. Also, if possible try to purchase from an authorized dealer only – this will ensure you get what you pay for! Finally, always keep receipts in case there is a problem with your purchase – especially fakes.
Buying Online
You can buy gold coins online from several sources. Make sure you know what types of coins they sell before placing an order – for example, don’t expect to find pre-1933 gold coins on Amazon! Also, keep in mind that coin prices may vary from site to site. Remember, these are just three things you should know before buying your first gold coin – the most important thing is to do your research and shop around until you find a dealer who suits all your needs.
Buying In-Store
If you prefer to purchase your gold coins in-store, there are still a few important things you should know. First, make sure that the dealer is authorized – this means that they can sell the types of coins they carry and have been approved by a governing organization such as NGC or PCGS. Next, find out what kinds of certificates they give with their products – it’s important not only for resale purposes but also for insurance purposes to receive a third-party certificate authenticating your product. Finally, remember to ask questions – don’t feel bad about doing so since most dealers love answering them.
Before buying gold coins, knowing the value of gold coins and how much they will cost you are important things to know. Gold coins may decrease in value over time but many will increase in value or get more valuable with age. Also, it is important to buy from authorized dealers only – for your safety! If possible, try to purchase BU (brand new) rather than Proof (minted for collectors) gold coins because BU means ‘uncirculated’ instead of ‘used’. If you’re interested in gold coins, do your research before buying!
