Commemorative coins have been issued by different companies as a way to advertise themselves. Most companies present these coins as a “one-of-a-kind” viable investments. They may be beautiful and themed after admirable individuals or some memorable historical event making them attractive to collectors, but when it comes to gold coins, looks can be deceiving.

Are commemorative coins really made of gold?

Just because commemorative gold coins are touted as gold coins doesn’t mean they are worth much. For one thing, most of these coins have more silver and other metals than gold. Gold is a powerfully persuasive word and companies selling such gold coins use it to influence consumer sentiment. Most commemorative coins are “gold plated,” meaning they have a thin layer of gold used to cover the surface, the rest of the coin could be anything from silver to copper. Overall, these coins won’t be worth much, if anything at all, when you decide to sell them

Anyone can make any claim about the product they want to promote. Just because you see something on television or hear about it on the radio doesn’t mean it’s legitimate. Advertising companies use clever words and skirt the truth when advertising commemorative coins. Just because a coin is a presidential commemorative coin doesn’t make it valuable. The fact that only a limited number of coins are struck also does not make them highly collectible.

To illustrate the point made above. In 2007, the US mint produced commemorative Reagan dollars. It was advertised then that there were only 1000 made. However, 1 million silver commemorative coins had already been made. This means a lot more people had the commemorative coin which would have caused the price of the coins to drop.

How much stock should we put on certificates of authenticity?

What about certificates of authenticity? Do they mean much or affect the price of the commemorative coins when you do resell? Not really. Some unscrupulous sellers will move general certificates among different coin sets. They may not be worth the paper they are written on.

Why should you choose numismatic gold coins

The alternative is to invest in genuine gold numismatic and rare coins. Unlike commemorative coins that are basically gold plated, rare or numismatic coins are valuable because they are made of pure gold. Investing in such coins means that you are investing in something that will appreciate in value. Gold and silver, unlike paper money appreciates in value during times of economic distress. Investing in fine gold numismatic coins can help protect against stock market failures, impending economic disasters caused by wars, severe inflation and national debt.

Commemorative coins may look attractive as display items, but as an investment they are as profitable as Pokémon cards. Commemorative coins also happen to be cheaper which should tell you of their true value. There are people who buy and sell commemorative coins as a hobby, but they cannot expect to get the same returns as people who invest in fine gold coins.

Sources:

1. https://www.thesprucecrafts.com/modern-united-states-commemorative-coins-768817
2. https://en.m.wikipedia.org/wiki/Presidential_$1_Coin_Program