First of all, you need to know the value of the gold coins that you are going to collect. Basically, the value of the gold coins will normally depend on two factors. When determining the value of gold coins, you have to consider the intrinsic value and the so-called collector's premium. These two are very different and it can really affect the value of the coin.
Intrinsic value is directly related to the selling price of gold bullions. You need to remember that when you are talking about the intrinsic value of the gold, it usually means that you are actually referring to the value of the gold itself. To make it easier for you to understand, you are actually selling the gold for the price that is placed on gold in the market. Today, you will usually find modern bullion coins and the intrinsic value is usually equal to the value of the coin.
Modern bullion coins are available online and can be purchased at any coin dealers. However, before you purchase the coin, you need to determine the dealer's commission as well as the shipping for the coin. You should also know the spot price of gold as this is where you will base the price for the coin. If you see that the coins are priced just below the spot price for gold, then you may be dealing with fakes. And, like with any other fakes, you should avoid buying it.
Collector's premium is another factor that can directly affect the overall value of the coin. When you talk about the collector's premium, there are several factors that can affect the price of the coin. These are the rarity, grade or condition, quality, and popularity which are often linked to historical significance. If a coin is rare and has a very good historical significance, it can sell for more than the value of the actual gold in the coin itself. An example would be a rare 20 dollar gold piece from 1861 in mint condition can be sold for more than 2 million dollars.
Collector's gold coins are considered to be much better investments than gold bullion coins. The problem is that they are very expensive and you have to do a lot of research before you buy. You have to know the exact value of a particular numismatic or rare coin before you actually buy it in order for you to avoid getting duped.
These are the factors that you need to keep in mind in order for you to start your coin collection. Always remember that certain gold coins have collector's premium and can get very expensive. However, if want simplicity when it comes to investing in gold coin then the modern gold bullion coins would be your choice. And, if you are a serious collector who is willing to spend lots of money on a rare gold coin, then you may want to purchase gold coins that have collector's premium.
Remember these tips and you will be able to have a clear path on what type of gold coins that you should start collecting and also what gold coins you should start investing in.
Tom has been writing articles about many topics for a long time. Not only does this author specialize in personal finance, you can check out his latest website on Ikea Bedroom Furniture with great Baby Bedroom Furniture ideas and information.
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