Old Gold Coins for Sale – Are They Good Gold Investment?

Gold has been steadily holding its high positions for a number of years now due to 2009 economic downturn. Though its price has gone down a bit, it does not scare investors of gold as they continue acquiring gold coins of all makes and types. Are old gold coins a good investment? This article will explain if you should spend your money on old coins or perhaps save them to spend somewhere else.

There are generally two types of players on the numismatic market, collectors and investors. Collectors acquire old gold for entirely different reasons than investors do; they asses a coin’s age, grade, rarity and visual appeal to determine the value. Even the tiniest mark or variation can add or take away hundreds of dollars from the old coins and their value. All these factors are irrelevant for investors who buy bullion choices to exclusively track the market prices of precious metals. Gold bullion coins, on the other hand, are valued only for their content and they carry much lower premiums and mark ups compared to old gold coins.

Investing in old gold coins could only be profitable if you possess strong numismatic knowledge and have the ability to pick through a wide selection of rare coins available on the market. Assessing the value of old gold coins is like separating grains from chaff and uncovering whether a certain coin is truly worth its asking price. Dealer premiums and costs associated with acquiring rare pieces are also dramatically higher and do not make much sense if you are interested in buying them for their metal content.

Generally, old gold coins values are comprised of three major factors, the actual gold weight, grade and numismatic value. While the two first criteria are easily assessed, the problem usually arises while determining the actual numismatic value that is concluded from historical stand point and rarity factors.

Am I truly willing to pay for old gold coins and the story behind them and will I be able to get my money back once I decide to sell them? These are the questions a true numismatic investor is answering every time he makes a coin investment pick.

If you do decide to invest in old gold coins, set aside no more than 10% of your overall investment portfolio specifically for rare coins, this creates a well-rounded and diversified investment package. When buying rare Russian gold coins or any other historical coins, make sure they are certified and plastic sealed with a numismatic seal of approval by one of the recognized coin grading agency like NGC, PCGS, ANACS and ICG. Same is true for buying old British coins that have quite a few recorded fakes due to popularity of such coins.

In case you are not a numismatic expert, it’s better to stay away from investing into old coins and choose gold proof bullion coins instead. Gold proof coins are basically variations of popular bullion coins but with elevated aesthetic appeal achieved by a two tone design, mirror finish and higher number or serrations on the edge of the coins. Buying old gold coins always carries a risk of running into a dishonest dealer trying to sell overpriced pieces for more than they are actually worth. Gold proof bullion coins have more predictable value and eliminate significant investment risks associated with rare gold coins like, for example, Napoleon gold coins. Historical coins values are considered very volatile due to ever changing coin market demands.

There’s nothing wrong with buying old gold coins for your collection, however it is never a good idea to base your entire investment portfolio on the volatile values of numismatics. Popular gold bullion coins like American Gold Eagle, Canadian Gold Maple Leaf of Chinese Gold Panda provide superior gold content combined with low investment costs, the ultimate goal of any investor in precious metals.