Collecting Gold Coins
The popularity of gold is universal and collecting gold coins has become both a fascinating hobby and a good, risk free investment. The beauty and durability of gold has made it very popular and interest in gold bullion and gold coin collecting continues to see significant growth around the world.
For many, collecting gold coins is simply an interesting hobby, fascinating because of the rich history and countless stories that old coins have to offer. However, gold coin collecting can also be a strong investment and many choose to collect the coins as a way of putting money into something of value that is less likely to depreciate over time, as opposed to investing in property or taking a risk on stock market shares. Having your money tied up in gold coins means you can easily access your wealth whilst being unlikely to lose any money. Buying gold has become the safe choice for insuring money during this time of economic uncertainty, but it has also become a way of leaving a legacy or heritage to the next generation.
Why buy gold coins?
If you want to invest some money in gold, there are predominantly two ways of doing so, namely purchasing gold bullion or purchasing gold coins. Essentially, gold bullion and gold coins are pretty much the same thing with gold bullion simply referring to the registered weight and fineness of the gold. Gold coins are also bullion, just smaller units of it. The main difference is, of course, that gold coins have a higher design finish, whereas bullion is small to large blocks of the metal.
It is for this reason that many people decide to choose collecting gold coins over bullion bars. Coins provide a higher level of interest and they are lovely to look at and display, whereas gold bullion bars are generally stored in a specialist facility.
How do I start collecting?
There are a wide variety of different gold coins available, so knowing where to start can be tricky. However, gold coins also cover every kind of budget, so it can often be beneficial to start with a few smaller coins that aren't too expensive.
It helps to do a little bit of research before you start collecting gold coins as the coins themselves can come from a variety of different countries, in lots of different sizes and weights. Small coins tend to start at either one tenth or even one twentieth of an ounce, but the more traditional ones are the one-ounce coins.
Some people choose to collect coins from a certain country or series, with popular collections including Canadian Maples, British Britannia, South African Krugerrands or Australian Gold Nuggets. Only you will know which coins appeal to you, so doing your research will make sure you are aware of all the gold coins available.
Should I collect used or proof coins?
Some collectors find the history of used coins more enticing, but it really is up to you as to which kind of coins you choose to collect. Proof coins are new coins designed especially to interest collectors and can therefore be slightly more expensive to buy. The extra cost of proof, or uncirculated coins, is due to the extremely high finish of the gold and the printing. However, investing in proof coins is generally worth it as they can often appreciate in value.
Storing your coins.
Think carefully about storing your coins. After all, you want to protect your investment and preserve the gold's natural beauty. There are lots of coin albums and folders on the market, but do make sure you choose a folder that is specialised for gold coins as some plastics can damage your coins and reduce their grading.
Always handle the coins carefully and hold them by the edges. This way, you will protect the high finish of the face sides. Ideally, always use cotton gloves when handling your collection and try not to handle them too often.
