Have you ever felt the pull toward gold and silver coins as a potential investment? Their timeless beauty, historical significance, and inherent value have captivated many investors. If, like them, you have ever found yourself fascinated by the idea of investing in gold or silver coins but felt uncertain about how to get started, you have come to the right place. In this article, I will explain the different types of coins available and provide guidance on buying and selling them. This beginner's guide is designed to equip you with the knowledge and confidence to embark on your coin investment adventure.
What types of coins?
Coins are the most popular way to invest in gold and other precious metals as their value is standard, they are recognizable worldwide, and you can easily buy and sell them. But first, you must understand that there are different types of coins: bullion coins, proof coins, and uncirculated coins. Each fulfills a different purpose. It is essential that you know the differences to determine which best fits your investment plan.
Bullion coins are the most common as they are mass-produced by the tens of thousands. They are punched from metal bars, cleaned, polished, and struck once. They generally have the advantage of being well-known around the world, and you can easily find their market price online or through a broker. The most famous coins are the American Eagle, African Krugerrand, American Buffalo, Canadian Maple Leaf, and Chinese Gold Panda. These coins vary in size and purity; the American Buffalo is pure gold, while the American Eagle is 23 karats. As they are mass-produced, bullion coins have the lowest premium among all coins. If you want to invest in gold because of the material and you want something easily recognizable and marketable, famous bullion coins are the best choice for you.
Proof coins have the highest quality. They are hand-polished and struck twice to ensure the best quality possible. The coins are then carefully packaged in a capsule and often placed in a box with an official certificate of authenticity. The design of proof coins is the same as bullion coins, but the finishing could be different: shinier or having a mirror-like background. Proof coins were originally created to ensure their quality and design before mass-producing them. They are always made in a limited number and accompanied by a certificate of authenticity that states how many coins were struck and which number you own. As they are a limited edition, these coins are collectibles and come with a high premium. If you want to invest in coins for their collection value and want the highest quality and craftsmanship possible, then proof coins are a good choice.
Uncirculated coins are an intermediate between bullion and proof coins. They follow the same production process as the bullion coins and are struck only once. The finishing of these coins could be slightly better than bullion coins but not as good as proof coins. The main difference with bullion coins is that they come with an authentication certificate and are placed immediately in a protective capsule to preserve the coins' quality. They are rarer and have a higher premium than the bullion but usually a lower price than proof coins. So these coins are a good way to ensure excellent quality while staying within a budget.
The type of coin you decide to invest in depends on your investment plan and what you want to do with them. For example, if you are a collector looking to own something special with the best craftsmanship possible, then investing in proof or rare coins might be a good opportunity.
Where and how to get your coin?
Once you have decided on the type of coin you get. It's time to determine where to get them. Gold is an expensive metal, and there are many people and organizations that specialize in creating counterfeits and are flooding the market with fake gold, which is why you need to be very careful when purchasing them.
As such, the safest way to purchase physical gold is to buy it directly from the Mint and refiners to ensure it is legitimate. Many refiners have physical shops and official websites where you can buy gold and have it delivered to a safe location. In addition, these deliveries are generally insured to avoid any nasty surprises. For your first purchase, it's easier to look at local opportunities as they might exempt you from taxes and duties. Here is a list of the four Mint by country:
• Britain: The Royal Mint (www.royalmint.com)
• United States: United States Mint (www.usmint.gov)
• Canada: The Royal Canadian Mint (https://www.mint.ca/en)
• France: La Monnaie de Paris (www.monnaiedeparis.fr/fr)
You can buy and sell your coins in a physical shop from certified resellers. The main advantage is that you can see and touch the coins; in addition, you can buy or sell in larger quantities. Furthermore, you have a variety of choices from different brands. However, these shops charge you an additional premium.
Alternatively, you can buy your coins from many platforms and professional resellers. However, you must ensure that they are reliable intermediaries and that they aren't selling fake gold. So, I advise against this strategy and suggest you buy directly from the source whenever possible.
Finally, you can always buy and sell directly from customers using platforms such as E-bay. Although it is time-consuming, it's the best way to sell your gold at market price. If your collection is truly valuable and you have some rare pieces, it might be worth participating in public auctions. If your collection gets traction, the price could go through the roof. Be aware that you need to pay fees for those services.
Going further
When investing, you must do a lot of research. There are a lot of forums, blogs, and websites that can provide you with valuable articles and information.
• Coinweek. This website is primarily focused on rare coins, paper money, and other articles that will interest numismatists (www.coinweek.com).
• The Silver Forum. You can find a lot of discussions about the latest and most popular collections. You can also ask questions to a large community that will happily help you (www.thesilverforum.com).
• Bullion by Post. I like to use this website when I want to look at the current price of precious metals. It is very convenient, and you can change the currency (www.bullionbypost.co.uk/gold-price/).
• World Gold Council. This website gives you a lot of useful information about gold as well as a beginner's guide that might be useful for your investment (www.gold.org). If you are a beginner about to make your first purchase, I would advise you to look at the official mints in your country, including the following.
Sources
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