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Sunday, October 21, 2007

Gold Coin Investments & Investing

Gold coin investments and investing are another way of investing in gold.

If you intend investing in gold coins, it is important to have some knowledge of the various types of gold coins, how much they cost and their market value and even what their value is expected to be in the coming months and years.

First thing to know is that there are different types of gold coins. These include the rare and antique coins as well as the newly minted of which you have Brilliant Uncirculated and Proof coins.

Rare and antique coins demand the most knowledge. Some can be worthless almost while others can fetch a very impressive price at auction. In the thousands and even up to the millions in very rare cases.

Brilliant uncirculated and proof coins can be obtained from dealers and mints. The best time to purchase is when the coins are first issued. There is usually a limited supply which can be anywhere from a few thousand down to just a few hundred. The coin dealers are very quick to snap up the smaller strikes so you have to be quick. Usually there is a limited of one or two sets per person also. Some people get their families to purchase for them also in order to build up their stocks.

Newly minted gold coins usually take a while to build up in value. The initial purchase also includes the shipping, packaging and, of course, the profit of the mint and dealer so the cost of that has to be made up too. Once you have gotten past that point in the value of your coins it is just a matter of time. The value of gold has demonstrated that it continues to rise against the value of the dollar and other currency so it is extremely unlikely you will lose any value.

In fact the value of gold has never dropped. An ounce of gold continues to purchase exactly what it did 50 years ago. The same cannot be said for the value of the dollar or other currency in fact.

With the rare coins , these of course have a value that can far outweigh the value of the cold content. The rarity value increases with the degree of rarity which often increases over time and in line with the demand created for the coins.

The best place to find these are at dealer auctions and auctions such as Sotheby's as well as in coin associations and groups. Private sales are a good place to look.

So gold coin investments and investing continues to be an excellent hedge against inflation and recession and can provide an excellent back up of assets for the future.