When getting into the hobby of collecting coins, people begin to question what coins they should be looking for; moreover, they ask themselves what makes a specific coin valuable. It’s an understandable question to have, as there are so many coins available throughout the market, from historical to modern, out-of-circulation to in-circulation. To anyone interested in what makes a coin valuable, there are numerous things to consider, most of them depending on just what you want out of your coin. For the sake of conversation, let’s consider the differences between gold coins.
Also known as numismatic coins, collectible coins are coins hobbyists and professionals seek out, purchase, and trade solely for their historical significance. While some of these coins might be also considered valuable due to their metallic content, these coins are valued for numerous characteristics, from grade to mint year, current circulation to an original number of coins minted.
Collectible coins are most often valued by comparing their current state to their original state. A little inspection can go a long way toward helping a basic coin collector understand the value of one of these coins—say, gold coins from pre-1933.
Older coins will be checked for things beyond just the denomination inscribed on the obverse of the coin (how much the coin is worth in circulation), including its mint mark, material, year, possible errors, condition, and rarity. These are important things to diligently check because counterfeits have and will be produced to dupe possible hobbyists into purchasing coins that are worth less than one might think.
Bullion coins are coins that are made from very-fine precious metals, valued solely for the weight of precious metals contained within. Unlike collectible coins, the value of these coins is based on their metallic content, often purchased for investing and other financial purposes.
People investing in bullion coins are often less concerned with the history and significance of their coin collections as a collector might be. For them, the hunt for coins is based on how it might improve the worth of their precious metals portfolio, perhaps stored within an IRA or a similar account.
Gold coins that are favored for their metallic content nowadays include American Gold Eagles or Canadian Gold Maple Leaf coins. We cannot look into the future, but it is highly possible that these coins will become increasingly popular with time, increasing in value more for their historical context than just their metallic value. But, for the time being, these gold coins make incredible investments for anyone looking to diversify their portfolio.
When we discuss gold coins, the value they carry comes in different forms, as we have discussed. A topic worth considering, though, is what steps can you take, as a coin collector, to maintain the value of your coins. This is a consideration sometimes overlooked, ashamedly so, as keeping your coins in a safe place is a surefire way to ensure that their value is maintained from purchase.
Some basic steps you can take to prolong the value of your coins is to avoid some of the markers we stated earlier—to avoid degradation and wear and tear. Your best options are to store coins in places that are safe, secure, out of direct sunlight, and free from fluctuations in humidity. The thought of a home basement might sound like a good idea, but this is an area of the home that is most likely to flood, so stay away from here. Instead, consider floor safes, locked filing cabinets, storage boxes within closets, or high-quality storage folders or notebooks specially designed for coin collecting.
If at any time you are unsure about the value of one of the coins in your possession, or a coin you are considering purchasing, it might be in your best interest to reaching out to a professional, whether through a professional online forum or by seeking out an appraiser. These people should be able to help you understand the actual value of the coin in your possession. If you ever find yourself in a bind, wondering just what type of coin is right for you or whether a specific coin is one you should purchase, consider reaching out to one of our representatives at Provident Metals. We’re always glad to discuss the finer details of coins with you.