Are you looking to start coin collecting? When you decide you want to buy a gold coin collection, you should have a strategy in mind. Coins are very expensive, but if you know the “game” (that is, the industry of coin collection and bullion metal), then you can make a decent profit. There are five tips you should remember when it comes to coin collecting.
1. You must align yourself with an experienced and knowledgeable broker.
You must find a dealer that can work with you in your goal to build a profitable collection. You must first figure out your financial needs and goals on your own. Next, search for a broker that has experience with gold, coinage and precious metals. In order to survive in an industry that regularly undergoes changes, market shifts and various other uncertainties, you must find a coin dealer that plays the same game. When you are ready to buy gold coin pieces, always have an ally at your side making suggestions.
2. Learn more about gold.
While it is usually considered the job of the coin dealer to give you advice, it helps to educate yourself of the ins and outs of the coinage and gold industries. Regularly check the prices of gold, as well as mine production news. Do you notice that the price of gold changes by season? Are there certain developments that can happen and will drastically alter the price? Learn all you can about bullion news and coinage news. This is what will make you a survivor in the coinage business.
3. Start small and invest for the long term.
It’s okay to use the coinage market for a quick profit. However, don’t make the mistake of betting too much, too soon and losing everything you have. This isn’t gambling; this is a sure-fire way to invest your money with no chance of depreciation. It’s not necessarily set in stone that the price of your gold will increase. However, there is practically a 0% chance that your gold savings will depreciate into nothing. Even if the world ends, and nations dissolve currency altogether, gold will still be shining. This is a great reason to buy a gold coin collection!
4. Your objectives should influence your portfolio.
You must give attention to creating some solid objectives, from which you can then build a portfolio. Figure out why you want to invest in gold and what type of gold is the safest form of investment for you. Are you in this for the long run? Do you plan to buy a gold coin collection so that you can have physical assets on-site? Are you hoping to start collecting coins for collectable value as well as bullion value? What are your plans for safeguarding your gold collection?
5. Do not invest in the mining of gold—just gold!
Many investors are mistakenly investing in gold producers, buying up lots of cheap stock in hopes of a big payday. So far, this move has proven to be in vain. Many mining companies are reporting record lows, and some are even approaching bankruptcy. Many believe that the world supply of gold is limited. When you buy gold coin pieces, however, you are not investing in a business that may or may not reap rewards. You are investing in your own money and taking it away from the threat of inflation.
What types of coins should you buy?
If you are thinking about buying gold coins as an investment, you may want some guidance on what types of coins to buy. Consider these five types of gold coin for your investment.
1. Gold Vienna Philharmonics. These coins are a gold bullion option, released from Austria. These coins began striking in 1989 and include 24 karat gold at a .9999 purity. This coin weighs in at one ounce and includes imagery of the Vienna Philharmonic Orchestra on both sides.
2. The Gold American Buffalo. First released in 2006, this coin includes a Native American profile on one side and an image of the iconic American Bison on the other. The coin is .9999 in purity and is 22 karat gold. On a historic side note, this coin is modeled after the American Buffalo Nickel.
3. The Gold American Eagle. A historic coin, the original version of it was first struck in 1795. This coin in its modern version came about in 1986. One unique feature of this coin is that you can purchase it in the size you like. The coin is available in values of fifty, twenty-five, ten, and five dollars.
4. Gold Canadian Maple Leaf. The coin was first available from Canada Mint in 1979 and includes 24 karat gold with a .9999 purity. The coin includes an image of Queen Elizabeth II on the front and the maple leaf on the back.
5. Gold South African Krugerrand. This option is offered at a feasible price for beginning investors. Including one troy ounce, the coin is 22 karat gold and offers a purity of .9167. The coin includes an image of South African President Paul Kruger on one side and a gazelle on the other.
No matter which style gold coin you choose, there is bound to be one that offers the investment and the value that you wish.