How did you become a specialist in modern collector gold coins?
In the 80’s I became interested in stamps and learned to appreciate the art and history depicted on them. Over time, I also became interested in coins, especially the silver coins that my parents collected, such as the 1972 Munich Olympics coins or other German silver coins. This fascination with their beauty and value led me to learn more about coins and collect them. I began acquiring gold coins in the late 1990s, starting with the Krugerrand, and realized the potential that modern gold coins offer collectors. Over the years, my focus expanded to include rare coins from Central and South America and Africa, driven by their rich history and cultural significance. Through constant study, research and knowledge sharing with other collectors, I have been able to expand my expertise in modern collectible gold coins. Now I am proud to share my knowledge and passion with other collectors and help them select and acquire quality collectible coins.
Do you collect coins yourself? Do you have favorite coins?
Yes, I am also a collector. As I mentioned earlier, I particularly like the Krugerrand in the proof version from Africa. I also have many coins from Mexico, such as Libertad Proofs and the famous 200 Pesos Bicentenario, in my collection. Another part of my collection consists of sample coins (also called proofs or Essai coins) in gold. Sample coins are coins that have not been officially issued, but have been produced to test proposed coin designs. They are usually extremely rare, hard to find on the market and can be very valuable. Essentially, I view the offerings in our online store as “my collection” that I share with other collectors and invite them to purchase a piece for their own collection.
Are collector coins a worthwhile form of investment? What are the advantages over other forms of investment?
Collectible coins can be an interesting form of investment, but there are important aspects to consider before investing in them. Here are some advantages of collectible coins compared to other forms of investment: Potential for appreciation: Collectible coins have the potential to increase in value over time. Rare and historically significant coins in particular may increase in value as their availability decreases and demand increases. This appreciation potential allows investors to profit from their investment.
Diversification: Owning collectible coins can diversify an investment portfolio. By investing in different asset classes such as stocks, bonds, and collectible coins, investors can spread their risk and potentially earn returns from a variety of sources.
Protection against inflation: Gold coins, especially those with a high gold content, can serve as a hedge against inflation.Historically, gold has tended to maintain or even increase in value during periods of inflation.This can help protect the value of an investment portfolio during times of economic uncertainty.Tangible assets:Unlike other forms of investment such as stocks or bonds, collectible coins are physical assets that can be owned. This aspect may be attractive to some investors who prefer something tangible in their investment.
Aesthetic Value: Collectible coins are often miniature works of art and can be an aesthetic delight. Many collectors appreciate the beauty and historical heritage of coins and collect them not only for financial reasons, but also out of passion for their hobby.
However, it is important to know that the market for collectible coins can be volatile and there is no guarantee of appreciation. In addition, investors should do thorough research to learn about the condition, authenticity and value of the coins they are considering buying. It is recommended that you seek expert advice before investing in collectible coins, taking into account your own risk tolerance and investment objectives.
Collectible coins can be a worthwhile investment, but they should be viewed as long-term investments rather than short-term speculative opportunities.
Can you give examples of collector coins that have done particularly well as an investment, or specific cases where the investment has paid off?
There are several examples of collectible coins that have proven to be good investments. However, it is important to note that the collectible coin market is volatile and individual results can vary. Here are some general examples of collectible coins that have appreciated in value significantly in the past:
Gold coins with historical significance: Coins depicting historical events or important personalities can be sought-after collector’s items. For example, gold coins such as the “Saint-Gaudens Double Eagle” or the “Indian Head Eagle” from the USA have achieved high collector values due to their historical and artistic characteristics.
Rare and limited editions: Coins minted in limited numbers or that are rare due to specific characteristics may increase in value. For example, certain vintages of the “Krugerrand Proof”, “American Gold Eagle” or “Chinese Panda Gold Coin” have achieved high collector values.
Coins with minting errors or variants: Coins that are rare due to minting errors or variants may have a higher value. Such coins are often sought by collectors who specialize in minting defects.
Collector coins made of rare metals: Besides gold, other rare metals such as platinum or palladium can also be used in collector coins. Coins from these metals with limited mintage can have a special collector’s value. A nice example is the Krugerrand Platinum special edition from 2017.
There are also many stories of individuals or collectors who have profited from their investments in collectible coins. For example, rare coins such as the “1933 Double Eagle” from the USA were sold at auctions for several million dollars.
However, it is important to note that the collectible coin market is not without risk and these examples are not a guarantee of future appreciation. In order to make informed decisions and minimize risks, extensive research, expertise and expert advice are essential when investing in collectible coins.
What tips do you have for investors who want to invest in collector coins?
If you are thinking about investing in collectible coins, here are some tips that can help you:
Do your homework: Conduct extensive research on the collectible coin market. Learn more about different coins, their history, condition and potential value. Read specialized literature, visit coin exhibitions and exchange ideas with experts to expand your knowledge.
Set a budget: set a budget that you are willing to allocate for your collectible coin investments. Evaluate how much you are willing to invest and what level of risk you are comfortable with. Make sure you are realistic about your budget and consider your financial capabilities.
Rely on expert knowledge: If you are unsure or do not have sufficient knowledge, seek advice from experienced coin dealers, numismatists or collectors’ associations. They can help you evaluate coins, verify their authenticity, and understand the market.
Diversify your portfolio: Diversify your investments by allocating funds to different types of collectible coins. Choose coins from different countries, years, and themes to reduce risk and potentially earn returns from different sources.
Quality over quantity: focus on the condition and quality of the coins. Coins in better condition typically have a higher collector value. Invest in coins with high ratings from reputable certification companies like NGC or PCGS to ensure authenticity and quality.
Long-term perspective: Consider your investment in collectible coins as a long-term endeavor. The value of collectible coins can change over time and be subject to fluctuations. Be patient and have realistic expectations.
Care and Storage: Make sure you properly care for and store your collectible coins. Use protective holders, coin capsules or coin albums to protect coins from scratches or damage. Keep them away from moisture, heat and other harmful environmental factors.
Selling strategy: plan in advance how and when you want to sell your collectible coins. It may be wise to wait for certain market conditions or seek expert advice to find the optimal time to sell.
Please note that these tips are general in nature and should not be considered financial advice. It is recommended that you seek professional advice to address your individual investment objectives and risk tolerance.
Conversely, what mistakes should be avoided in this area?
When collecting collectible coins, there are some mistakes that should be avoided. Here are some crucial points:
Insufficient research: a serious mistake is to invest in collector coins without having sufficient knowledge and research about the market, the coins and their valuation factors. Misinformed decisions can lead to financial loss. Take the time to thoroughly analyze the market and coins before investing.
Lack of Authentication: Purchasing collectible coins without proper authentication can result in fraudulent or counterfeit coins. Rely on recognized certification companies such as NGC or PCGS to verify the authenticity of the coins.
Ignoring the condition: The condition of the coin plays a crucial role in its value. Don’t overlook the state of preservation of the coins; look for details such as scratches, wear marks, or cleaning marks. Invest in coins with better preservation conditions to increase their collectible value.
Excessive speculation: Buying collectible coins solely for the purpose of making high profits quickly can be risky. The collectible coin market can be volatile and performance is not guaranteed. Invest with a long-term perspective and avoid putting all your eggs in one basket.
Lack of diversification: excessive concentration on a particular type of coin or market can lead to high risk. Diversify your portfolio by investing in different types of collectible coins and asset classes to spread the risk.
Insufficient storage: do not neglect the proper storage of your collector coins. Improper storage may result in damage or loss. Use appropriate protective containers, coin capsules and store the coins in a safe place.
Lack of advice: do not forgo expert advice, as this can lead to investment mistakes. Seek advice from experienced coin dealers, numismatists or collectors’ associations to make informed decisions and avoid potential pitfalls.
Investing in collectible coins requires patience, expertise and a long-term perspective.
What is the role of grading in this area?
Graduation, also called coin certification, plays an important role in the field of collector coins, especially in international collector circles (less common in Germany). This is a process in which an independent and specialized grading company evaluates the condition and quality of a coin and assigns a grade or classification.
The grading of a coin by a reputable grading company such as the Numismatic Guaranty Corporation(NGC) or the Professional Coin Grading Service (PCGS) offers collectors several advantages:
Authentication assurance: the assessment confirms the authenticity of the coin and ensures that it is genuine and not a fake.
Condition assessment: During the assessment, the condition of the coin is judged on a scale from “Poor” (bad condition) to “Perfect Uncirculated” (flawless condition). This gives collectors an objective assessment of the coin’s state of preservation.
Determining Value: Having a coin appraised by a reputable appraisal company helps determine the exact value of the coin. Collector coins in higher grading levels generally fetch higher prices on the market.
Market acceptance: Staggered coins are generally easier to trade and enjoy greater acceptance on the world market. This is because grading provides an independent and trustworthy assessment, reducing the risk of counterfeit or overvalued coins.
Long-term preservation: graded coins are sealed in special containers to preserve their condition and protect them from damage. This contributes to long-term value retention.
In summary, grading plays an important role in confirming the quality, authenticity and value of a collectible coin. It offers collectors security, objectivity and marketability for their coins.
How can investors ensure that they do not receive counterfeits when buying gold coins?
Buying gold coins has some risks, especially in terms of counterfeiting. To ensure that investors do not receive counterfeits when buying gold coins, they can take the following measures:
Reputable dealer: buy gold coins only from reputable and established dealers or mint houses. Do your research ahead of time and check the dealer’s reputation. Read customer reviews and testimonials to make sure the retailer is trustworthy.
Certification: Purchase coins that have been graded and certified by reputable certification companies such as the Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS). These companies professionally check the authenticity and condition of the coins.
Mint and Origin: Familiarize yourself with the mint and origin of the coins you wish to purchase. Renowned mints like the Royal Canadian Mint or the United States Mint have strict quality standards and usually produce coins of high quality.
Expertise: If you lack the necessary expertise, consult an expert. A coin dealer, numismatist or experienced member of a coin association can assist in verifying the authenticity and quality of the coins.
Packaging and documentation: Make sure that the coins are delivered with original packaging and appropriate accompanying documents. Counterfeits often lack the same care in packaging and may have missing or falsified documents.
Price comparison: If the price of a gold coin seems too good to be true, you should be skeptical. Compare prices from different dealers and make sure the price is in line with the current gold price and the collectible value of the coin.
Magnet and seal tests: Additional control can be done by magnet and seal tests. Gold is non-magnetic and has a specific gravity of about 19.3 g/cm³. Special devices are available on the market to perform these tests.
It is important to exercise caution and invest time in vetting dealers and coins to ensure you are not getting counterfeits when buying gold coins.
Are there any websites or resources you would recommend to beginners?
Yes, there are several websites and resources that can help beginners navigate the world of gold coin collecting. Here are some recommendations:
Coin Catalogs: Coin catalogs are comprehensive reference works that provide information about various coins, their history, specifications, and values. A well-known coin catalog is the “Standard Catalogue of World Coins,” published by Krause Publications. This catalog includes a wide selection of coins from different countries.
Coin forums and communities: There are online forums and communities where collectors can share their experiences and knowledge. Such platforms offer the opportunity to ask questions, get advice from experienced collectors and exchange ideas with like-minded people. An example of a popular coin forum is the “CoinTalk” forum.
Coin Dealers: Contact local coin dealers or coin houses. They often have experts on site who can assist with inquiries. They can also help you find suitable coins and explain the buying process.
Online Auction Platforms: Online auction platforms such as eBay can be a useful resource to get an overview of available gold coins and their prices. However, be careful when buying from online marketplaces and make sure that the seller is reputable and trustworthy.
Numismatic literature: There are numerous books and publications available on the subject of gold coin collecting and numismatics.
Numismatic Societies: Join a numismatic society or coin club. Such organizations often offer information sessions, lectures and meetings where you can learn from experienced collectors.
These resources can help beginners expand their knowledge of gold coins and gold collecting. However, it is important to use a variety of sources and continue to conduct independent research to develop a comprehensive understanding of the issue.
