Category Archives: Gold Coin Advice
Why You Should Avoid Investing In Commemorative Coins
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:
- https://www.thesprucecrafts.com/modern-united-states-commemorative-coins-768817
- https://en.m.wikipedia.org/wiki/Presidential_$1_Coin_Program
The Royal Australian Mint Commemorates 250th Anniversary Of Captain Cook’s Voyage With Gold Coin
Captain Cook is an important figure in the history of Australia. It has been 250 years since the British Naval captain embarked on his first voyage in 1768 to find the Southern Continent along the Pacific Ocean. Cook set sail on the “HM Bark Endeavour.” To commemorate this, The Royal Australian Mint is releasing a high-end 3-coin series.
This is a continuation of the Royal Australian Mint program of gold coins depicting the night skies launched a couple of years ago. The series known as the “Southern Sky” and “Northern Sky” coins insists of coins wrapped in a one-ounce gold dome.
The Gold Coin Design
The new Captain Cook series of commemorative coins was created by designer and sculptor, Gary Breeze. He has worked with the Royal Mint before on the design of the “75th anniversary of the Battle of Britain’s ” 50p commemorative coin in 2015.
The design is based on the 18th-century maps of Captain Cook’s voyage. There is a map of the Southern Hemisphere etched on the coin. The concave face has fine details of the voyage bordered by inscriptions. These coins will be released over three years and will chart the progress and discoveries of Cook’s epic voyage.
How much will these gold coins cost
These coins do more than honour Captain Cook but they pay tribute to the man’s spirit of adventure. There is a lot that was discovered by Cooks sojourns, he may have never reached the fabled Southern Continent but he made some important discoveries. The three coins have a central uniting image, “The Endeavour.” The ship that first carried the Captain to the “new world” plays centre stage. The coins come in a nice wooden presentation box and a certificate of authenticity. According to the Royal Australian Mint, only 750 coins will be made. These will sell for $2,795 AUD.
Advantages of buying these coins
These coins are a great investment because they are made of gold, which has always been a safe haven asset. There are considerable advantaged for owning gold coins:
#1. It’s a highly liquid asset. You can coins worth ten of thousands of dollars in your hand. They can be sold anywhere in the world.
#2. Gold cannot be destroyed by fire or water or any natural or man-made disaster or time itself.
#3. Gold coins don’t carry counterparty risk. They are the only financial asset that is not some entity’s be it a bank or government’s liability.
#4. The price of gold has been always in flux, but the value of gold is timeless. Unlike paper currency, gold retains it’s purchasing power for years.
#5. You don’t require any special knowledge to enjoy owning your own gold collection.
This is a beautiful collection depicting and celebrating a pioneering spirit and an important time in the history of Australia. The design incorporates text of key location point in Cook’s voyage from his departure from Plymouth, discoveries of new lands and astronomical discoveries in Tahiti.
$2,795 AUD might sound a little bit pricey, but a lot of collectors and gold bugs will be lining up to get their hands on one of these coins. At the low mintage of 750, these might just turn out to be highly collectable coins in the next couple of years.
Ref: https://www.royalmint.com/discover/uk-coins/captain-cook/
http://agaunews.com/royal-australian-mint-commemorates-captain-cooks-voyage-domed-gold-coin/
Tricks of the Trade: Selling Gold Coins
For most of us who are new to the world of gold coins or numismatics might find this article useful, especially if you are about to embark on mission to sell your gold coins. What you must know and what you know may differ greatly and when it comes to selling gold coins, both perspectives are equally important.
First and foremost, when you decide to sell your gold coins, you have to think about, why you bought them in the first place and if it had anything to do with hedging your wealth, but your financial situation got a little out of hand, then maybe ‘selling’ your gold coin or coins may not be the best alternative. Consider using them as collateral to get a ‘friendly’ loan and make a dal whereby, you will be in possession of your coins as soon as you pay the loan within a specific time frame.
This way, you would probably be able to get at least 90 % of the value of your gold coins. If this alternative proves to be unviable and selling them is the only option. Here are some things that you should know and consider before selling your gold coins.
1. What is the Value of the Gold Coin?
Although most gold coins have predetermined values based on their weight in gold, always double check and do your homework as some gold coins gain value due to their rarity and these coins often fetch higher prices than their net weight in gold. Some coins are worth double or triple their net weight in gold, thus make sure you know the exact value of your gold coin.
2. Whom do you sell gold coins to?
Anything containing gold is highly liquid and this means just about anybody would be willing to exchange their cash for your gold. Therefore, in ordr to get the best price out of your gold coin sale, it is best that you shop around and take your coin to more than just 1, 2 or 3 dealers. Take it to at least 5 or 6 dealers and assess the best offer against market value. Alternatively try to sell it online, however, when you do this, do not throw caution to the find, be extremely careful and never let your gold coin or coins out of your sight.
3. Consider the cost of selling gold coins
Normally the best prices offered for gold coins comes from the people who sold it to you in the first place, but you should consider the costs involved in obtaining the coin (shipping and handling and insurance) and the cost of sending it back to them. Compare these costs with what you will be receiving and calculate your returns.
4. Should you really sell your gold coins?
If you can get by without selling your gold coin or coins, then, do not sell. Gold coins increasing in value as they age and over a few years they normally gain numismatic value as they become scarce and this would be an added advantage, if you are able to wait a while.
Grading Coins
There are numerous ways through which one is able to grade gold coins in order to determine their ‘numismatic’ value. One of the most popular grading methods was invented by Dr. William Sheldon in 1949 which is a 70 point grading system that is still used by gold and silver coin collectors everywhere. Grading gold coins or silver coins is an essential part of numismatics before trades are made. The more familiar gold coin collectors are with the scale the more leverage they have to bargain or rather negotiate the price of the gold or silver coin that they intend to buy or sell.
Reputable gold trading companies that deal with coins made of precious metals also employ this method in a reasonable and justified manner, and before you buy gold coins you should become familiar with this method. Starting with the ‘Business Strike Coin’ which is the coins that are minted for circulation in commerce rather than it is for collectors. Following closely behind Business Strike is the Proof – These are coins with numismatic value that are typically designed for collectors and not commerce these coins are distinguished by sharpness of detail & usually with a brilliant, mirror-like surface. The term Proof that is attached to it refers to the method of manufacturing and it is not a reference to a coin grade.
The terms Mint State (MS) and UN circulated (Unc.) refer to coins that are in immaculate condition. These coins are practically new and probably became a collector’s item from the moment it left the minting. The highest grade in the Sheldon Gold Coin Grading Scale is the Perfect Un circulated (MS-70) – Perfect new condition, showing no trace of wear. Coins belonging in this grade are extremely rare. The Second highest grade that follow suit is Gem Un circulated (MS-65) – An above-average un circulated coin that may be brilliant or lightly toned and that has very few contact marks on the surface or rim this grade is pursued by Choice Un circulated (MS-63) – A coin with some distracting contact marks or blemishes in prime focal areas. After this there is the Un circulated (MS-60) – A coin that has no trace of wear, but which may show a number of contact marks, and whose surface may be spotted or reduced in shine and smoothness. The lower grades in the popular precious metal coin grading system sees the Choice Very Fine under the VF-30 category these coins have light, even wear on the surface and highest parts of the design but all lettering and major features are still sharp and prominently distinct.
The Very Fine VF-20 category follows next with coins showing moderate wear on high points of the design. All major details are still clear however. Towards the Fine F-12 grade the coins are deemed to have been subjected to moderate to considerable even wears. The entire design is bold with an overall pleasing aged appearance. The Very Good VG-8 follows the F-12 where the coins are well-worn with main features clear and bold, although rather flat due to constant usage. Reaching the Good G -4 grade the coins are heavily worn, with the design visible but faint in areas with most details flattened.
The final class of the grading system is the most common condition of most ‘old’ numismatic coins is the About Good or AG-3 category, these numismatic coins are usually very heavily worn with portions of the lettering, date, and legend are botched and smoothened out with the dates being barely readable.
Gold Coin Scams
Rising gold prices due to the current market unpredictability and chaos has caused gold prices to move forward at the start of this year and the precious metal’s profit potential is attracting dishonest con artists into the precious metals arena. These unprincipled con artists are taking gullible hard working individuals for a ride ranging from grading scams to packaging and selling non-existent and counterfeit bullion.
To give all the readers of this article the heads up on how these cams work, first let us start with the “Grading Game”. When it comes to gold coins the MS-70 category is the top notch “mint state” coin that has practically ‘never’ been touched by a human hand, which means that coins graded on this class have a much higher value, so what these scam artists do is, they simply lie about the grading. As an example, a 2002-W $50 Gold Eagle with an MS–60 grade is valued at approximately $1,650 whereas the same coin with an MS-grading is valued at approximately $2,850. New coin buyers will find it very difficult to tell the difference between these two grades as the MS-60 is ‘near mint’ condition and to unsuspecting and inexperienced buyers they would easily pass off as MS 70 coins and thereby they end up overpaying hundreds of dollars, the only way to get around this issue is to check with an independent source, although this might cost you a little, it is definitely much better than costing you hundreds of dollars for nothing.
Coin packaging are there for 2 reasons, one to protect the coin and the other is to hide its flaws, therefore coin buyers have to be extremely cautious about grading certificates and other ornamental holders that obstruct buyers from probing or examining coins. There have been incidences of dealers placing inferior products on fancy plaques or even behind multiple layers of transparent sheets to prevent buyers from inspecting the merchandise, this technique has landed buyers with gold-copper alloy coins instead of the real deal. The only way around this is to request the casing to be removed without obligations, if the seller refuses to comply, take your money elsewhere.
This is the ‘Big – Kahuna’ and although it may seem a little difficult to believe, there are dealers who actually do not deal with fake gold coins, they have taken things further and deal with coins that do not exist!
They draw up papers stating that they have gold coins and offer gold investors to buy gold bullion coins from them and even charge the buyers for storing gold coins that do not exist. So how do you get around this situation? It is simple, ‘take possession of your gold bullion coins – there is no other way!