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Tips For Buying Gold Coins

Have you decided now is a good time to add gold coins to your investment portfolio? Well, the good news is there is never a bad time to invest in coins. When buying gold coins your choices are huge, you can concentrate on particular country of minting, design, gold weight, rarity, age or even popularity.

Price will always play a big part in making your choice for you, because the price some coins fetch is seemingly unlimited. For example the most expensive gold coin sold in recent history was the 1933 Double Eagle gold coin, fetching a hefty $7.59 million. This is because during its last year of minting there was a discontinuation of the domestic gold coin circulation in 1933 and almost all of these coins were melted down.

If you were lucky enough and wealthy enough to purchase one of these then this would be a sound investment. However there are many coins that can be bought relatively cheap, gold coins are worth more than their gold weight. The premium will vary, it will be affected greatly by condition along with all of the other factors mentioned already.

Collecting or Investing?

You will need to consider, are you simply collecting because you like the designs or is this investment to make money over a period of time. The general rule is that gold coins will increase in value as they age, become rarer or demand spikes.

General guidelines for buying gold coins are firstly the gold purity, aim for 22 carat. The higher this number the less junk metals are contained within the piece.

Some collectors avoid rare coins, because this narrows the market of possible buyers.  The more similar pieces then the more potential buyers you will be faced with. Alternatively other collectors see this in reverse, the rarer the better, this will fetch a higher premium.

Does the coin have a recognised mint? Is this a trusted mint? If this is an unrecognised mint then your coins quality may be in question.  This works pretty much the same as a water mark on a currency note.  If someone has simply made it up then it means nothing.

Questions to consider when buying gold coins

Does your chosen coin have high demand?  If not then it will reduce the potential buyers. Is your coin pleasing in appearance? Now this will cover design, condition and markings.  For example if you want to sell the coin in the U.K. can the markings be understood?

Coins in order of popularity according to the official mint statistics are as follows:

Turkish Republic, American Eagle, Canadian Maple Leaf, South African Krugerrand, Austrian Philharmonic, Chinese Panda, Australian Kangaroo, American Buffalo.

However these statistics are changing as demand experiences highs and lows. All of these coins would hold a deserved place in your investment portfolio. Keep in mind that coins are generally a long term investment, but on occasion small profits can be made relatively quickly.

If you are interested in buying gold coins visit coininvestdirect.com to see all of these coins, prices ranging from around £30 for an Australian Roo and over £870 for a Chinese Panda.

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  1. How To Buy Gold In The UK | Buy Gold - September 25, 2013

    […] deliberation and research. We dealt with what to look for when buying gold in an earlier article Tips For Buying Gold Coins so this time we will concentrate on how to buy […]

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