Buying and selling gold coins is a great way to keep and increase your savings. Reliability, high profit and minimal risks testify for this kind of investments. You only have to have a sufficient amount of money and be able to estimate profitable items; you should know how to identify the value of ancient and collectible coins, what nuances are worth paying attention in order to determine the authenticity and state of condition of a particular item.
Types of coins for purchase and sale
In numismatics, there are several categories of coins made of precious metals. Each category has its own evaluation criteria, which means that the purchase or sale of certain coins will bring different profits.
Ancient coins
First of all, investors are interested in ancient gold coins. Almost every numismatist would like to have a rare item to extend his collection. Over the past 40 years, the prices for individual items have increased several times. For example, in 1987, gold coins minted two centuries earlier cost 200 rubles, and nowadays – from $ 1,000 (especially intensive price growth was observed in 2003-2008). Thus, the ancient items are reliable source to invest your money.
Do you know? The cost of ancient coins is also determined by history. Some coins are connected to interesting facts that raise them in price. The Double Eagles coin of 1933 was sold for a record-high price ($ 7,590,000). In 1934, during the Great Depression, the production of gold coins was prohibited, coins of precious metals were to return to the treasury and all Double Eagles were announced as a property of the Treasury. In 1996, in England, some collector put the survived specimen for auction (only about 20 coins remained).
The price formation of old gold coins is affected by three criteria:
- circulation;
- condition;
- year of issue.
Competent valuation of an old item is the main condition for gaining the maximum benefit from buying an ancient coin. The smaller the circulation is and the better the gold coin looks, the more chances for a good sale you have.
The condition of the coin is evaluated by the following parameters:
- mechanical damage;
- clarity of the picture and particular details;
- degree of cleaning and the presence of traces after it;
- patina (increases the cost);
- damage from natural effects (corrosion, porosity).
To get the right results, you need special equipment and knowledge, which are provided by professionals from the world of numismatics. After a thorough examination specialist will help to determine the cost of ancient coins based on its strengths and weaknesses.
Do you know? About 2,500 tons of gold is extracted annually in the world. South Africa takes a leading position. Following it are the United States, Russia, Canada, Australia – the main producers of the most expensive bullion and commemorative coins.
By the year of issue, the following types of the most valuable coins can be distinguished:
- Middle Ages – you can mostly find such items in museums or collections of numismatists;
- Tsarist Russia – the period is distinguished by the large number of minted items of precious metals, which gives a good chance to earn money by buying and selling gold coins;
- The USSR – coins of this period (except for commemorative ones) were minted in large circulations, so the value of such coins will grow only with time, but their purchase is favorable right now.
The time of tsarist Russia is the most attractive period for collectors. The items of that time are distinguished by a great variety (the design changed every two years) and large circulations (zlatniks of Vladimir and rubles of Nicholas II have special value). For beginning numismatists and those who want to invest in the purchase and sale of gold coins, the price remains affordable.
Bullion coins
Gold coins issued by the central banks are designed for profitable buying and selling. It is not necessary to have a certain knowledge in the field of numismatics in order to learn how to buy and sell. It is much easier to understand how the stock exchange works. The only disadvantage is a long period of waiting for profit (approximately, 5 to 10 years).
Do you know? The first thing you need to know about a bullion coin is its weight. This knowledge is useful for buying or selling gold items. Each transaction includes fees of the shipping cost and commissions to the dealers or the bank. The standard weight for a profitable transaction is one ounce (31.1 g.), anything lower than that will reduce the potential profit.
Advantages of bullion coins buying/selling:
- reliable metal;
- high liquidity;
- easy accessibility;
- relevance in any part of the world;
- high volatility.
The cost of the precious metal is growing steadily, so is the price of bullion coins. If the coins will be properly stored for a long time, you can effectively sell them back to the bank, the new owner or to the pawnshop.
The sale of investment coins requires knowledge of certain nuances. First of all, the new buyer will check the items for defects (chips, stains, scratches, fingerprints). In particular, these conditions relate to Australian Proof coins. Therefore, it is better to store copies of precious metal in the original packaging or in slabs. Otherwise, the coin will lose up to 10-15% of the price.
Do you know? After buying, the gold coins on this list are evaluated at no less than 7 million dollars. These include the Umayyad Golden Dinar of 723 ($ 6,029,400 in April 2011), the 10-dollar Eagle of 1804 ($ 5,000,000 in October 2007), the Flowing Hair Dollar of 1794 ($ 4,993,750 in September 2015), The Brasher Doubloon in 1787 ($ 4,582,500 in January 2014).
An easy way to sell an investment coin is to take it to a bank, but in order to get a higher spread (the difference between buying and selling), you need to know some of the nuances:
- commercial organizations offer a higher spread than the state banks;
- rare items are valued higher than copies issued in large circulation;
- spread is higher in large cities than in small settlements.
If the coin is damaged or the banks offer unprofitable conditions for the transaction, you can try online evaluation, sale at auctions or pawnshop.
Commemorative coins
Another profitable and easy option for buying and selling gold coins is investing in commemorative coins. Items from precious metal have the favorable conditions for the transaction – numismatic value (circulation is limited and known in advance) and stable increase in the price of gold. Over time, the cost of a commemorative coin will grow not only because of the composition but also because of the rareness (up to 50% per year). For example, in 2010, a commemorative coin of 10 rubles of Chechen Republic was worth 1,000 rubles a year, and now its price starts from 10,000 rubles.
Do you know? A nominal value is often indicated on the coins from gold. This value seems to be ridiculous in comparison to the actual price. The value is assigned to coins to make them real legal tender that can be transported from country to country without taxes levied by some states.
By the production technology, commemorative coins are divided into:
- Proof (expensive and rare item of almost manual work);
- Uncirculated (inexpensive sample issued in large circulation).
The image associated with the anniversary is placed on the reverse; the symbols of the state, the date of issue and the denomination are depicted on the obverse. Various series, such as “Outstanding Personalities”, “Sport”, “Astrology”, “Rare species of animals” and “Architectural Monuments” are in special in demand.
Pay attention when buying coins
In order to receive profit from buying/selling gold coins, it is not necessary to buy new items from the bank. A collection of coins can be replenished with the help of auctions. A necessary condition is the presence of an original protective container. It is better to buy coins in slabs from trusted companies NGC or PCGS. This guarantees the authenticity of a particular item and high quality.
If the coin is packed, then after the purchase it is impossible to open the package. Damaged packaging and a worn-out coin will reduce its cost by a third.