A Buying Guide for First Time Gold Coin Buyers

If it’s your first time investing in gold coins, then there’s a good chance you have a lot of doubts and questions. We’ve come up with this useful guide that will help you make your first gold coin purchase successful.

In this guide, we will talk about the advantages of owning gold coins, the very best coins to buy, how to find the correct dealer and deals, where to purchase, and the dos and don’ts of buying gold coins. Let’s begin.

Why Should You Buy Gold Coins?

Buying gold is finally a long-term investment as gain is made in the future. Although gold prices fluctuate, its value is timeless making it an ideal asset. You can even pass it on to your heirs.

Gold coins are ideal for hedging against inflation and capitalizing on price movement. The tangibility, strong liquidity, value density, store of value quality, low maintenance and transportation costs of gold coins make it a quintessential investment. Gold coins are also free of counterparty risks so that you don’t have to have any paper contract.

There are several gold coins in the market and they can be categorized into two types —

Bullion gold coins are standard coins made of highly refined gold. Many authorities mints produce bullion coins every year. Manufactured and guaranteed by authorities, silver coins are also called sovereign coins. Their value is based on the content of the precious metal.

Unusual or numismatic coins are „collectibles“. They are bought/sold by collectors and their value is based on rarity and their condition rather than gold content like bullion coins. These coins are highly priced coins and their premiums can soar up to millions. However, unless you want to become a collector, numismatic coins won’t be a profitable choice.

As an investor, you should buy coins that are simple to sell and not tricky to market. When you go to sell rare coins, the major concerns are less number of buyers, delays in prices (since the authenticity is to be assessed) and chances of becoming lesser premium than the original value. With bullion coins, these risks are absent as you can sell them anywhere, get loads of buyers and get paid based on the amount of gold.