Collect Vintage Gold Coins
Many of us are fascinated by antique coins. Coins provide a window into history since they have been used by ordinary people for thousands of years and have changed hands numerous times. In the historic towns of Britain, an old coin might have been handled by a King or Queen or used to purchase the most basic items.
RPS Gold, the leading dealer in precious metals in the UK, offers a wide selection of investment-grade gold and silver coins, including an increasing number of rare, numismatic, and semi-numismatic coins. The metal content and historical value of these highly collectible antique coins make them exceedingly expensive.
Take Professional Advice
You should speak with your investment advisor before making any investments. Here is some wise counsel to consider before making any gold coin investments if you have already made the decision to do so. Keep in mind that the price of gold tends to increase during periods of severe economic turbulence. The price of gold typically decreases when the economy is sound and steady. When the price of gold has risen quickly over a short period of time, avoid buying it as an investment.
Government Mints vs. Private Companies
Both the Franklin Mint and the Bradford Exchange were privately held businesses that produced a range of “collectibles,” including coins. Most coin collectors are not interested in these coins because they are made by private companies rather than by legitimate government agencies. Even if some of the things these businesses (and their rivals) have produced do have a minor secondary market value, their coins have typically performed very poorly.
Coin dealers simply place these coins on a scale to weigh them and pay between 90% and 95% of the spot price of silver or gold, with the exception of a few early Franklin Mint sets. Unfortunately, a large number of the coins produced by these private companies are devoid of precious metals. On the other hand, the United States Mint is a recognised government mint, and its goods sell fairly well on the secondary market over time.
Investors can purchase bullion coins from the United States Mint, including items like Gold, Silver, and Platinum Eagles. These coins are available from the mint in proof and uncirculated forms for coin collectors as well as in mass-produced forms for bullion speculators. The coin you choose to purchase depends depend on your investing or collecting objectives, but these all have the potential to be good investments.
Do You Invest in Gold?
I advise against purchasing gold coins if your primary goal is to purchase gold bullion as an investment. Investing in common gold ingots and bars will benefit you more. These gold investment bars are offered by dealers for a small premium above spot pricing.
Due to their rarity, the U.S. Gold Eagle, Canadian Maple Leaf, Chinese Panda, and a few other coins produced by government mints carry premium markups. The ingots and bars issued by European banks and a few reputable private refiners have the lowest premiums out of all the currencies, including the South African Krugerrand, which typically has lower rates.
Reputable manufacturers and refiners of European bank ingots include Credit-Suisse, PAMP, and Johnson-Matthey. There are Engelhard and SilverTowne in the United States. If you’re buying gold to hold bullion, buy the ingots and bars produced by these refiners since they have the lowest commission rates.
Do You Collect Coins?
However, if your investment goals are more in line with amassing beautiful coins that also have bullion value, you have a number of options. The American Eagle, Maple Leaf, Panda, and Krugerrand coins are examples of pure bullion coinage. Buy traditional American gold coins, such as the Liberty twenty-dollar gold pieces or the Saint-Gaudens Double Eagles, if you want to invest in precious metal coins. The most popular dates of these vintage American coins are traded at bullion value plus an additional 8%–10%. However, during periods of economic turbulence when the market is active and the supply of physical gold is constrained, this premium may rise.
These coins have the advantage of having two potentials: the gold within will always have bullion value, and the gold is held inside an American currency that is more than 100 years old. These two elements raise the likelihood that their rarity will cause their value to rise. We don’t know how many were melted during the early 2008 melting frenzy when gold prices exceeded $1,000 per ounce.
The premiums on these coins are therefore negligible in light of their scarcity and future value, and they will only become more scarce over time.
Should I pursue investing or collecting?
You need to decide if you’re a collector or an investor before you can decide what to buy. If you adore the patterns and motifs on coins, how they feel in your hands, and the fulfilment of completing sets, then you should collect coins for their aesthetic value and the pleasure of the pastime. The majority of collectors have the thought that they will someday sell their items for a profit in the back of their minds.
Buy bullion bars instead of collectible bullion coins if your main objective is to stockpile metal against a possible doomsday or if you just believe that gold will appreciate and you’ll be able to sell it for a profit in the future. By purchasing traditional American gold coins, like the Saint-Gaudens gold Eagles, you may, as mentioned above, sort of straddle the fence on this.
Make sure to accept delivery of your items as soon as possible, whatever you choose to buy! Never allow businesses to store your bullion in their vaults! You’re going to be stuck with a paper note that is worthless if these businesses fail or are the victim of fraud. Take possession of your gold and keep it in a safe place that is under your control, ideally a bank safety deposit box.