Old Gold Coins
Gold can appeal to everyone, whether it is a delicate piece of jewellery, an investment in gold bullion or the fascinating hobby of collecting gold coins. It seems that making a safe investment whilst providing an intriguing hobby has made collecting gold coins very popular in recent years.
Gold coins come in a variety of weights, styles and origins, which is why collecting has become such a well-received hobby. But collecting gold coins has also given many people a way of making a risk free investment, rather than putting money into property or stock market shares, both of which have recently seen declines thanks to the unstable economic situation. Gold has a reputation for keeping its value and in some cases, such as rare gold coins or proof coins, can actually appreciate in value over time.
What kind of coins can I collect?
When it comes to collecting gold coins, there are a lot of options out there and it can be hard to know the best place to start. Coins are printed in mints all over the world and many countries have their own particular style or print. Popular coins include the Canadian Maples, South African Krugerrands and the British Britannia. Doing some research and knowing what coins appeal most to you will help you know what coins interest you most.
You can also choose to collect used coins or new and uncirculated coins. Used coins offer a rich history and can make collecting more fun and interesting as you collect the coin's story as well as the coin itself. New or proof coins are made especially for collectors, so are very often more expensive than used coins. The extra costs are due to the high finish of the coin. However, these proof coins can be a good investment as they generally hold their price or in many cases, even appreciate in value.
Collecting old coins
There are many collectors who specialise in collecting old or rare coins only. Collecting rare coins can be an even more rewarding hobby than simply buying gold as an investment, as the unique stories behind the coins can be very fulfilling. It is also slightly more difficult to find these old coins, as the market is quite competitive. Old coins offer the best return for your money though, as they will generally increase in value as they age.
How to measure the value of your coin
Coins come in a variety of sizes, some as small as one tenth of an ounce, but very often the traditional size for a coin is around one ounce. The smaller the coin, generally the lower the price, but when it comes to old or rare coins there are other factors that can affect the coin's value.
Obviously, the age of the coin is important, as coins from certain time periods are more in demand than others. Many collectors deal in a specific time period and are willing to pay more for coins originating from their chosen dates. Collectors can be more competitive for these rare coins and drive prices up, which is good news for your investment.
But coins are also judged on their condition and the demand they generate. Coins come with a grading, which is often a visual evaluation of their wear and tear. The less wear the coin has, the higher the grade.
How can I protect my coins?
Protection and storage of your coins is very important. If they aren't protected, the coins can easily be damaged and therefore decrease in both their visual beauty and their value. One of the attractions of choosing to collect gold coins as opposed to gold bullion bars is that the collection is visually pleasing and many collectors display much of their collection. Choosing a specialist coin album or folder is a must, as this will keep your coins both organised and protected.
It also helps to bear in mind there are particular ways to clean your coins and try to keep handling to a minimum. If you do need to handle the coins, try wearing a pair of cotton gloves and only handle the coins by their outside edges.
