People collect coins for many different reasons, some as a hobby, some for investment potential, however the thing to remember is that coin collecting can be fun as well as a way to invest money over time. Coin collecting began way back in the medieval times when people started to collect coins as a hobby because of the design of the artwork on the minted coins as well as their historical value.
Although still a hobby for most people, coin collecting, just like many other forms of collecting (think stamps or art) can be quite lucrative for the collector. This is especially true if people are collecting coins made of precious metal such as gold or silver. As a form of money, most coins made of precious metals such as gold, for legal tender stopped production in the early 20th century, making coins made prior to this very rare. In fact the most expensive gold coin every bought sold for millions of dollars. It was an American Eagle 1933 gold coin.
Gold coins are not only made in the US. The British minted gold sovereigns, in South Africa you can find the gold Krugerrand. In Canada the Maple leaf design is minted and in Australia they made the Nugget. Although most of these coins do not have a face value, the gold content of the coins and the weight as well as the year of minting and it's rarity mean that you can buy what is essentially 1 ounce of gold for varying a fluctuating prices. Gold bought for collecting or for investment can be bought and sold in many different outlets online. Today, most people buy gold as an investment, speculating that the price of gold will rise. This tends to be true when financial markets are less stable.
Buying gold coins online can be much cheaper than buying them through an offline outlet, however to ensure a smooth gold buying experience you should remember a few things
- Think about the type of gold coin you would like to buy before you go searching for your purchase.
- Decide who you are buying the coin for. What would they like and how much you want to spend
- Remember that there will usually be a fee for delivery of your purchase, and ensure that whatever method used by the seller is safe and secure (and insured)
- Make sure the seller is a reputable person/organization providing proofs of ownership/right to sell, a contact address and phone number. If possible their reputation should be verifiable
- Never pay for your purchase with an instant transfer or wire service as these methods have no guarantees and are used by fraudsters often
Be sure your gold coin buying process is safe and secure. Buying gold should be a pleasurable experience enjoyed by both collector and investor alike.
Roslyn writes about gold bullion coin collecting and gold bullion investments as well as other precious metal investments. You can also browse and find gold bullion for sale if you are a collector of American Eagle gold coins or other rare gold coins on her website.