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Introduction
Coin collecting, once a hobby reserved for royalty, now welcomes all enthusiasts. With a rich history and even richer value, gold coins offer more than just aesthetic pleasure. Coins provide you with a tangible way to store your wealth. But where to begin?
This guide will teach you how to start a gold coin collection, transforming you from a curious collector to a gold coin connoisseur.
What is coin collecting?
Coin collecting, or numismatics, is one of the oldest hobbies in the world. It dates back to Ancient Greece, where it was customary to present people with coins as gifts. Even the Roman Empire had its share of avid coin collectors. Emperor Caesar Augustus himself reportedly collected old and foreign coins to give them to his closest friends.
Nowadays, this hobby is far more accessible, with millions of enthusiasts devoting their time to expanding their collections of beautiful, rare, and historic coins.
But what drives this passion? People collect coins for many reasons: some for the historical aspect, others for the sheer joy of owning something rare and shiny. Many people collect coins to protect their wealth, make a profit, and diversify their investment portfolio.
Since coins are considered collectibles, their value isn’t tied to market trends. Instead, their worth is influenced by a range of factors, like rarity and demand. So, the rarer the coin, the more value it has.
Fun fact! An individual who collects coins is called a numismatist. Numismatics is the study of collecting things that are used as money; this includes coins, paper money, tokens, and related objects.
Is collecting gold coins worth it?
Short answer? Yes, starting a gold coin collection is worth it.
Gold has been a valuable asset for thousands of years. It’s a symbol of wealth and power, an effective hedge against inflation, and a safe-haven during market turmoil. This makes gold coins highly appealing to enthusiasts and investors. While many factors contribute to a coin’s desirability, gold’s rarity, durability, and aesthetic appeal have made it a favorite among numismatists.
Unlike paper currency, which can easily be devalued by inflation, gold always retains its purchasing power. So, collecting gold coins is an incredibly easy and convenient way to store your money in a tangible form. Even when wars are raging, prices are rising, and economies are crumbling, gold retains its value. Plus, the allure of owning a beautiful piece of gold, crafted with meticulous detail, is hard to resist.
Maybe that’s why the market for collectible coins is growing like crazy. Created in the 1970s, the Professional Coin Grading Service (PCGS) tracks the price of rare coins through its index. It has reported an incredible 6,515% rise since the index’s inception.
As gold coins are collectibles, their value only grows with time. Unlike other collectibles that might lose their appeal, quality gold coins are timeless. They will always be sought after, so investing in rare gold coins can provide you with significant profits in the long run.
Did you know? According to the American Numismatic Association, there are around 25,000 coin collectors and hobbyists around the world.
How to start a gold coin collection for beginners?
Starting a gold coin collection can seem like a daunting task. However, with a little knowledge and guidance, you can begin building your dream collection in no time. We’ll share with you everything you need to know about collecting gold coins as a beginner:
Know the parts of a coin
Everyone knows what a coin looks like. However, the intricacies of its design often go unnoticed. So, before you start collecting, it’s good to understand some basic coin terminology, especially the different parts:
- Obverse (the front): The main side of the coin often has a notable person or a symbol.
- Reverse (the back): The opposite side, usually has a different design.
- Edge: The outer border of the coin. There are different types of edges, including plain, reeded, lettered, or decorated.
- Mint mark: A small letter or symbol indicating the mint where the coin was produced.
- Rim: The raised part of the edge of a coin that protects it from wear.
- Legend: The main inscription or lettering on the coin.
- Field: The flat portion of the coin’s surface that doesn’t have any design or inscription.
Learn the coin grading scale
The rare coin market used to be a bit of a gamble. However, with the introduction of third-party coin grading services in the 1980s, things drastically changed. These services provided an independent assessment of a coin’s authenticity and condition, significantly reducing some of the risks of investment.
The Sheldon Coin Grading Scale is widely used to assess the quality of collectible coins. It grades coins on a scale of 1 (poor) to 70 (perfect) based on their preservation and condition:
- Poor (P-1) to Good (G-4): Heavily worn, barely recognizable.
- Very Good (VG-8) to Fine (F-12): Moderately worn but clear details.
- Very Fine (VF-20) to Extremely Fine (EF-40): Light wear, good eye appeal.
- About Uncirculated (AU-50) to Mint State (MS-70): Minimal to no wear, sharp details.
- But when it comes to investment grade coins, the rarest of the rare is the Mint State 70 Class (MS-70). These top-notch pieces have been granted perfect-quality “grades” from the industry authorities and prove to be the best value-add for the investors.
Coins from reputable brands like Premium Gold exhibit higher grades on this scale, reflecting their pristine condition and superior quality.
Define your goals
Defining a clear purpose for your collection is essential. Are you trying to diversify your investment portfolio? Protect your money from inflation? Or do you simply want to collect coins for fun?
Understanding your motivations will help guide your collection’s direction. For instance, if investment is your primary goal, you might want to focus on rare or limited-edition coins. On the other hand, if you are drawn to the beauty and history of gold, collecting coins based on design could be more fulfilling.
To add a personal touch, consider collecting a specific theme. Perhaps you are drawn to the beauty of the natural world or the grandeur of major cities. By selecting a motif, you can give your collection a unique identity and direction.
Buy from reputable brands
So, you know what you want to collect and understand all the lingo. All that’s left now to do is start collecting. But you can’t just go and buy random coins off the street. You need to turn to reputable brands.
We at Premium Gold pride ourselves on being at the forefront of the industry. Our exclusive series of gold coins are of the highest quality and have a high degree of rarity, making them a worthy investment. Their meticulous craftsmanship, stunning proof finish, and diamond encrustments make them a valuable asset, highly likely to appreciate over time.
Check out our Majestic Wildlife collection for inspiration.
How do I grow my gold coin collection?
There is no greater thrill than finding the perfect coin for your collection. It’s a priceless feeling. However, building a beautiful gold coin collection is an ongoing journey.
Here are some easy ways to grow your gold coin collection in no time:
- Look out for new releases: Keep your eye out for new releases, like our upcoming Great Cities of the World collection.
- Join a community: Connect with fellow collectors online to discover new coins, find rare pieces, and learn insider knowledge.
- Balance your coin portfolio: Diversification is a must, so try to have coins from a variety of collections.
Fun fact: Notable coin collectors include King Farouk I of Egypt, actor Jack Black, and founding father Thomas Jefferson.
How to take care of a gold coin collection?
Storing your money in the form of gold coins is easy and convenient. However, once you’ve started your gold coin collection, you must take good care of it to maintain its value. Even though gold is tough, the surface of a coin is delicate and needs proper care. But with some simple tips and tricks, you can easily keep your gold coins in mint condition.
Proper storage
The great thing about coins is that they don’t take up a lot of space. This means you can keep them in the comfort of your own home and enjoy their beauty daily.
Just keep them in a cool, dry place away from sunlight to prevent moisture and extreme temperatures from causing damage. Choose acid-free holders, albums, or coin capsules to store the coins. Additionally, consider using silica gel packets to absorb excess moisture in the storage area.
Keep your collection in a stable environment to preserve the quality of your coins.
Handling
If you have rare coins in your collection, you need to handle them with care. Always hold coins by the edges to prevent fingerprints, oils, or dirt from transferring onto the surface. You can wear cotton gloves to minimize the risk of scratches or other damage during handling.
Cleaning
It’s best to avoid cleaning your coins as improper cleaning can reduce their value. If a coin seems dirty or tarnished, it’s best to take it to a professional. After all, preserving a coin’s original patina and surface is often more valuable than attempting to make it look shiny and new.
Can you make money from gold coin collections?
Yes, you can make a lot of money from your gold coin collection!
Historically, rare coins have demonstrated impressive price appreciation. For instance, according to Finest Known, a rare-coin newsletter, elite coin prices soared over 1,000% from 1976 to 1980 and 600% from 1982 to 1989.
Moreover, collectible gold coins serve as a hedge against inflation. As the value of fiat currencies erodes, gold, a tangible asset, tends to appreciate. So, by adding rare coins to your investment strategy, you can easily protect your wealth and even increase it over time!
Final words
Gold coins are the ultimate blend of beauty and investment. They’ve proven time and again that they are a reliable asset, outperforming many traditional investments. Whether you’re drawn to the elegance of rare gold coins or the potential for long-term financial growth, these tiny treasures offer something for everyone.
Now that you know how to start a gold coin collection, it’s time to embark on your own adventure. Explore our exquisite collection of gold coins and find the perfect piece to kickstart your journey.
The world of numismatics offers endless possibilities. With careful selection, proper storage, and a touch of passion, you can build a collection you are proud of.
