Gold investing through gold coins is a powerful option for investors who can appreciate the significant potential upside to holding coins for long-term value growth. Just like with any investment decision, the buyer has to do their due diligence in order to avoid making a bad deal. The potential of being ripped off exists in any industry and gold investing is no different. However, there are a number of ways that investors and collectors alike can protect themselves and make fair deals nearly 100% of the time.
Work Through A Reputable Dealer
A knowledgeable and reputable dealer is a great source for advice and guidance on gold investing and gold coins. They offer years of experience and information to an investor who has just stepped into the industry or has been purchasing gold coins for years.
To find a good dealer, look for agencies that have been in the industry for 30 years. This deep well of experience is proof that the dealer can be trusted and has a knack for coins and investing. Make sure any potential dealer is authorized through the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC) before making any deals.
Buying Slabbed Gold Coins To Ensure Authenticity And Value
In order to help guarantee that an investor is buying authentic coins, it is important to only buy slabbed pieces that are house in approved slabs or containers. Slabs should include a clear plastic holder that allows an investor to see the coin inside, should be labeled with all of the coin's grading and statistics, and should show the piece's professional certification.
When it comes to certification agencies, the most popular and reputable agencies include the Professional Coin Grading Service (PCGS), the Numismatic Guaranty Corporation (NGC), and the American Numismatic Association Grading Service (ANACS). These companies have a long history of accurate and truthful reporting on the authenticity of coins of all types. Ensure that the labels containing this information are present and do not look like they have been tampered with; otherwise, walk away from the deal.
Slabbed coins are also, typically, in better condition than loose pieces, so it is easier to get better grades from currency in an appropriate holder.
Dating And Grading Gold Coins
Next to rarity, grading plays an important role in determining the potential value of any coins that make for good gold investing decisions. Rare pieces in a high grading typically command the best premiums from investors and collectors and offer the best potential for long term value growth and appreciation.
However, there is one complication when it comes to looking at rarity. Common issue dates for common pieces are typically not graded through an agency; most people do not spend the time and money grading and certifying issues that have little value or investment potential. As a result, common year coins could appear to be rare when in fact they are quite common.
To avoid this pitfall, look for key and semi-key dates. Most of the key dates for US coins can be found by looking up their book values in the "good" grading level. These dates typically reflect truly rare coins that make for excellent gold investing decisions.
Research And Due Diligence
Every investment requires good research in order to maximize the chance that it will pay off in the long run. Investing in coins is no different than any other investment. Thankfully, there are a number of resources and guides that will help direct investors toward making good decisions.
The Official Blackbook Price Guide to US Coins is one such resource. It contains information on the value of pieces from different years and grades. The price guide is a good first stop in determining the appropriate value for any potential purchase or sale. Using this guide helps to spot deals that may be undervalued or overvalued.
Grading agency information is another source of research information. A reputable dealer has a wealth of advice, tips, and industry history that enables them to assist investors in analyzing deals. Utilize the experience and knowledge of a trusted dealer whenever possible.
Finally, take a look into how the market is doing in regards to the price of gold. This market value does play a role in the coin industry since the intrinsic value of a piece will vary with the market. Timing purchase orders and sales along with the market is another important aspect of making profitable deals. For example, don't sell a coin for less than the value of its metal content.
These techniques and tips will help any investor avoid getting ripped off.
Stephanie Elman is an author for the United States Gold Bureau, providing collectors and investors with the knowledge and expertise for gold investing and integrating gold coins into their finances.
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