The current low interest rates are causing many people to look for alternative investment options . Of course, stocks are always an option that can be used to quickly add to the original investment. At the same time, however, this investment is relatively risky. If you do not have the financial means to purchase real estate, for example, there is still another crisis-proof alternative available to you: rare gold and silver coins are ideal for cleverly expanding your investment portfolio.
Coin trade: That’s why it’s worth buying gold and silver coins
Investing in gold, silver or platinum coins is becoming increasingly popular. Depending on whether you choose collectible or bullion coins, there are several factors that determine coin value:
- In the case of collector coins made of gold and silver, it is the rarity, the state of preservation, the origin and the In addition, market trends influence a potential increase in value.
- Investment coins are dependent on the current precious metal prices in terms of sale value and possible appreciation. Therefore, this investment is particularly worthwhile when the price of silver or gold is low.
Regardless of which coins you buy: Gold has been an emergency currency for centuries, proving its worth in times of crisis. This means that gold coins are always suitable as a means of payment, even if other currencies expire. Detached from such a scenario, the investment complements your portfolio and secures your finances. After all, it’s always good to be broadly positioned. If you also invest in equities, you will also benefit from the tendency of the gold price to move in the opposite direction.
Important: If you are considering gold as a hedge for times of crisis, be sure to invest in gold coins or gold bars. Gold securities, just like other securities, are essentially worthless in these cases.
Collector and bullion coins: What are the categories of coins?
In numismatics , a general distinction is made between collector’s and bullion coins . For aspiring coin collectors, these terms are rarely enlightening. Nevertheless, these two forms have established themselves, since collecting according to gut feeling and optics is by no means purposeful. It is therefore common among coin collectors to collect coins from a specific material (e.g. gold or silver), country, series or era. Based on these categories, you can then select your favorite collectible or bullion coins:
- Collector coins: These are usually commemorative and special coins that are minted exclusively in limited quantities for specific occasions. The value of these coins is often higher than bullion coins. Basically, the more valuable the material, the higher the coin value. For this reason, platinum coins are usually more valuable than silver coins.
- Bullion coins: They are minted in large numbers and are therefore available without much effort. Therefore, the value of the precious metal alone determines how high the coin value In Germany, these coins are considered investment gold, should they be made of gold. This makes them an excellent investment for times of crisis. Nevertheless, you should note that the value of these coins fluctuates as much as the price of precious metals itself. The classics among these coins include, for example, the Krugerrand, the Maple Leaf and the Britannia gold coin.
The most famous gold coins
If you want to buy coins, it is worth investing in the most famous specimens. These include, for example, the following coins and coin series:
- Gold coins from South Africa: The Krugerrand Gold
- Gold coins from North America: The American Eagle Gold as well as the Maple Leaf Gold
- The Vienna Philharmonic Orchestra
- Gold coins from China like China Panda(1982, 1 Oz)
- Gold coins from Australia the legendary Kookaburra gold coin, the Australia Kangaroo (“Nugget”).
- Gold coins from Mexico like the Libertad
- Gold coins from Russia like the ruble Tsar Nicholas II
The most popular coins from silver
At a professional (online) coin dealer like Rarecoin you will not only find gold coins. Just as in the coin store near you , you can also get here collectibles made of silver, including, for example, the
- Maple Leaf Silver
- American Eagle Silver
- Vienna Philharmonic Orchestra
- Libertad (in silver)
- silver china panda
- Australian Koala
- Australian Kookaburra in silver
By the way: In numismatics, one always speaks of silver coins when their silver content is at least 50 percent . When buying silver coins in a coin store, the percentage compared to today’s standards, is very small. The reason for this is that in the past, coins made of silver were provided with a copper alloy . This made the coins harder, so they were more suitable for daily payments.
Buying and selling coins: how to determine their value
Whether you want to have your coins valued or want to buy new coins, the best way is always to consult an expert beforehand. There are now several reputable coin dealers in Germany who can help you determine the value of your coin collection . Apart from that, the following characteristics will provide you with initial clues:
- The first step before selling coins is to collect the most important key data. Where does the coin come from? In what year was it minted? What metal is it made of? Is it a well-known bullion or collectible coin or a completely unknown specimen?
- Before you take your coins to the coin dealer, it pays to do a little research on your own. Anything you can read on the coin could provide initial answers when researching online. Ideally, you should use coin catalogs as a guide. These also include the generally applicable prices in the purchase and sale.
- The next question is: Is there a coin dealer near you? Irrespective of whether you want to sell a single coin or your entire coin collection: you should not forego going to the coin shop. The reason for this is that different aspects are important when selling coins. What may not be obvious to a layman will certainly strike a numismatist. Alternatively, you can have your coins inspected by a qualified online dealer.
After you have answered the question ” Is there a coin dealer near me? “, you should take another look at your coins. Finally, they should be in pristine condition before you have your coins appraised. The following factors are reflected in the price you receive when purchasing coins from your coin dealer:
- The rarity of the coin
- The age of your coin collection.
- The state of conservation
- The current collector demand. For example, at the coin dealer euro coins are much more in demand than those from non-EU countries.
With these criteria, the better the rating in each category, the higher the value of your coin.
Coin dealers near you: Where to buy coins?
A coin store can be found in almost every major city. Such a coin dealer is the ideal place for acquiring old and valuable specimens. However, there are other options that may be considered for coin buying and selling:
- Online sellers like eBay: The online auction house is a popular destination for coin collectors. Here you can find both coin dealers and private individuals. If you don’t want to go to your local coin shop, the online option can be an alternative. The special thing about it is that the prices are much more transparent when buying coins here. This is not least because you can easily compare the different offers.
- Embossing sites: In addition, you can always stop by a local mint. Unlike in the coin shop, you only get new editions here . If, on the other hand, you want to buy gold and silver from previous years, you need to go to a coin dealer. Unfortunately, the visit to the mint is not always easy. Especially in small euro states, the purchase is often associated with a lot of effort for collectors.
- Fairs and auctions: You want to see the originals first before you decide which coins to buy? In addition to visiting your trusted coin dealer, you also have the option of attending coin fairs. Here you will usually meet a variety of qualified coin dealers.
- At the coin dealer: The classic way is still to buy your coins at the coin dealer you trust. Here you already know in advance that you can rely on the quality of the coins. In addition to buying in the store, it is also possible to order the desired copy directly from the respective online store .
Proper care and storage of coins: This is what you should pay attention to
Whether you plan to sell your coin collection later or not, proper storage is critical. In specialized shops you can get albums, boxes or cases in which you can safely store the precious gems. Finally, optimal storage requires a dust-free and dry environment and low humidity.
Basically, you should never clean dirty coins, because here the numismatic value can be destroyed very easily. This concerns especially coins in proof/polished plate quality. However, should you ever want to clean dirty coins, it is best to use a mild soapy water solution and a brush. With it, even depressions and unevenness can often be cleaned without any problems. In any case, refrain from using sharp and aggressive cleaners or strong mechanical action.
Important: Coin collections are also very popular with thieves. Therefore, be sure to inform your insurance company and make sure you have adequate theft protection.