Myths about Gold Coins as an Investment


There are many ways for investors to invest their money into the gold market. Besides the obvious stocks of gold-mining companies, consumers can choose to purchase gold bars and coins, and numismatic coins, invest in gold options, jewelry, scrap gold or even gold accounts. Anyone considering investing in rare gold coins also known as numismatic gold needs to do their research. A reputable precious metals dealer such Birch Gold Group can help you decipher fact from fiction. Here are some common misconceptions to consider:

Rare gold coins are like gold bullion.

Nothing could be further from the truth. The value of bullion is tracked to the spot price of gold extremely closely. Bullion has no extreme value other than its metallic worth. Rare coins are cherished for their rarity first and foremost. Most of their value is tied to the rarity and what collectors are willing to pay. The year they were minted, their country of issue and denomination are important for assessing their value.

Rare gold coins will increase in value.

While gold coins regularly increase in value, their retail markup can mitigate that profit to almost nothing. Unless you are an expert in collectible coins or are purchasing a huge lot, it is unlikely that you will see a significant return on your investment.

Rare gold coins are an investment in the precious metals market.

Gold coins, whether they are rare or not, are primarily a coin-collecting investment. This is a market run by experts who are licensed, certified coin dealers. While gold coins are of course made of gold the majority of their value has more to do with their collectability and buyers demand.

Pre-1933 gold coins cannot be confiscated by the government.

In fact, no gold can be confiscated by the U.S. government. At one point in history, this was true, but it is no longer the case. Laws and the times have changed

Even in a huge financial crisis, it is unlikely the government would want to confiscate gold coins because the U.S. currency is no longer supported by gold. Unscrupulous sellers typically use this marketing ploy to scare investors.

Gold coins are liquid and can be easily sold.

Rare coins are similar to expensive paintings and collectible antiques, both of which are difficult to sell, particularly at a profit, unless a willing buyer appears.

People who buy rare gold coins need to know what they’re buying, and have the solid advice of someone who does. Even a little lot of rare coins can cost thousands of dollars, they are not very liquid, and can decrease in value rapidly.