Many people collect coins as a hobby, but very few realize its investment potential. GoldCoin collecting can be a fun hobby as well as a source of potential income if one knows what he is doing. Coin collecting as a hobby has been around since medieval times when people began collecting coins for their historical value and as a memento of art. It can have a huge investment potential if the collector likes coins of precious metals such as silver and gold.
A great thing about collecting gold coins is that they can be especially profitable so much so that a an American eagle coin of 1933 sold for millions of dollars. Gold coins as legal tender have been out of circulation from early 20th century. So thereís also a great deal of antique value attached to such coins in addition to them being made of gold. Many countries nowadays run special editions of coins such as the Canadian maple leaf, the british sovereign and the south african kreugerand.
Almost all countries have had a history of gold coins in circulation starting from civilizations in India where gold coins were used as early as the 5th century. One of the favorites amongst collectors of gold coins came from South Africa the gold Krugerrand. Unlike Gold bars, gold coins are not sold or bought on the basis of its purity levels or at the market price for gold on that particular day. Prices of gold coins fluctuate to a large amount based on supply and demand of the rearity of the coin itself.
Interestingly itís this rarity that has a greater role in determining the value to the coin and not the gold. But one thing is sure that such gold coins provide for a profitable investment and the prices shoot up more than any other form of gold especially when the markets are unstable. The only drawback of possessing such coins is that at times when one needs quick money they might be difficult to sell as compared to gold bars and bullion, they have a higher premium attached to them. But the price that one obtains the gold coin at makes up for this drawback when sold.
Things that potential investors should be wary off while investing is gold coins are:
- Do your research and be sure of the type of coin/ coins you want to invest in.
- Keep your final goals in mind, are you buying primarily for investment or as a hobby with a potential investment and then decide on how much you would spend on it.
- Compare prices from different dealers and look for authenticity, if required as for a certificate regarding the same.
- If buying online be make sure the delivery is insured and the whole process is secure using a trusted seller.
Remember , with investment in gold coins or other gold bullion items your future is secure as gold tends to decrease the risk in your investment portfolio even history suggests the same, in 1970ís when markets crashed gold prices soared and the same can be predicted for the coming years. Although we are in a peroid of deflation, when inflation kicks in you will be glad your holding gold coins rather than paper money!.