Investing money in precious metals will provide you with benefits such as stability and prospects for the future. A special place among all kinds of ways to invest takes the purchase of investment coins. Because of the constant growth of their value, most popular gold coins and bars allow their owner to receive a stable profit. Any coin collector or numismatist in US can confirm it for you.
There is a real justification for this. Over the last decade, financial markets have been shaken by crises. Deposits are yielding below the inflation rate, making it impossible to get a return on investment, and stock markets have crashed time over time, making it risky to invest. What can we say about the crypto market, which is a continuous risk. At the same time, the value of coins during this time has increased almost five times. According to the estimates of the participants of the auctions, the upward trend remains at the same rate, and the increase in prices a year reaches an average of 16-20%.
What are investment coins?
Gold, silver, and sometimes platinum coins made of high-grade precious metal are considered investment coins. They are produced in large quantities using uncomplicated minting technology.
Coins are sold in special capsules to protect them from damage during storage. Since the metal is of high “soft” quality, mechanical abuse can cause damage, which will reduce the value of the coin in the future due to poor quality.
When buying, it is worth remembering not all dealers will buy it back. The difference between the purchase and sale price is quite significant, so it is unprofitable to sell coins in a short timeframe. Like all other gold, coins and collectible bullions can only be profitable over the long term.
The value of coins for investment
Here are the main factors that form the price of a particular coin:
The presence or absence of defects
Only proper storage can guarantee the absence of damage, the excellent appearance of the coin, and a high price for subsequent sale. If there are scratches, scuffs, dents – the status of the coin and its price will go down.
Number of copies
If there are large circulations, the demand for the coin, and therefore the price, is low because of its wide distribution. Conversely, a rare precious coin issued in a small circulation will be a welcome acquisition of any collector. The price of such copies is much higher.
The value of coins is highly dependent on the metal from which they are made. For gold coins, they usually take the precious metal with a sample of 999, and their value is formed by the price of the metal. The plus here is that the coin will never be valued less than the metal it contains.
Prevalence of the coin
A rare gold coin can be worth many times more than a similar weight but more common specimen.
The older a coin is and the longer a person has owned it, the more valuable it becomes. The market value of precious metals appreciates appreciably in 5-10 years, despite possible momentary price collapses.
Where can I buy the coins to invest in?
It is safest to buy coins from registered, reputable and trusted gold dealers. You can buy them there, complete with branded packaging, certification, and contract documents (where they are required – usually certificates are included with commemorative coins, as opposed to investment coins which do not need certificates).
Buying coins “of the hand” and by ads on the Internet is dangerous. Even perfect appearance and perfect likeness to the original cannot guarantee the authenticity of such copies. Modern technologies of high precision casting allow for creating very high-quality copies of anything.
Income from precious coins is achieved through profitable resale. It is a long process that takes several years and requires constant monitoring of the gold and silver market. It is advisable to invest only for investors who have significant capital and do not seek to make a profit in the short term. In other cases, it is recommended to consider other types of investment.