Thursday, June 4, 2015
Coin Collecting in 2015–An Investment and a Hobby
Many individuals are aware of the fact that they can invest in silver or gold through an IRA or by purchasing stocks. However, another option that should not be overlooked is to buy gold and silver coins outright. This alternative allows the individual to build a collection that serves as an investment as well as an enjoyable pastime.
An Investment and a Hobby
The value of different coins depends on not only their content of precious metal, but also their age and condition. Because coins date back several centuries, older coins are typically worth more than their newer counterparts, with mint condition coins being the most valuable of all. Creation of the first silver and gold coins is credited to 6th Century BC Turkish traders, who needed a type of currency in certain trading situations. Pieces of this kind are typically a mixture of the two metals, with a ratio of approximately 30 percent silver to 70 percent gold. For this reason, it is possible that a specific value was not yet established for silver or gold at that time. Immediately following this period, advancements in coin design techniques resulted in the stamping of images and dates on the surface of each piece. When this type of art was perfected, Kings and Queens quickly demanded to see their images embossed on specific coins.
Through the years, coin history followed a pattern that is closely associated with human history. Many Greek and Roman coins featured pictures of famous individuals in history, such as warriors, or religious gods or mythical creatures believed to play important roles in crucial battles. Some coins of this type also featured animals or depicted various works of art that were famous at the time. Guides are available for those who want to determine the value of coins from different centuries and countries.
Benefits of Investing in Precious Metals
Since the value of coins and physical precious metals is intrinsic, their usefulness as an investment cannot be understated. The security they offer is unparalleled in many ways: unlike stocks or mutual funds, the risk associated with coins is virtually non existent. In addition, those who invest in coins need not depend on bank stability or a stock exchange.
Popular Modern Coins
Those who sell coins for cash usually have a clientele of investors who prefer owning precious metals themselves rather than investing in stocks or futures. Many investors consider modern gold coins such as the American Gold Eagle and the Canadian gold maple leaf great investments, especially since the price of gold is steadily climbing, according to the world commodities markets. American Silver Eagles are also popular among many investors, and these are typically available individually, but can also be purchased in the form of a proof set.
Importance of Purchasing Gold and Silver From a Reputable Dealer
Those planning to buy gold and silver coins should only do business with reputable dealers who are established in the field. Legitimate business owners who sell coins for cash guarantee the quality of their precious metals. For this reason, a dealer should be selected with care.
Choosing a Coin Dealer
The best way to verify the legitimacy of coin dealers is through agencies such as the National Geological Service or the Bureau of Land Management. One's local Better Business Bureau is also a good place to obtain information about specific dealers. In most cases, such agencies keep lists of legitimate gold and silver merchants.
Investing in precious metals is a virtually risk free endeavor, and the time has never been better to begin. Because of inflation and the shakiness of the global economy, those who wish to expand their investments should give serious though to adding gold and silver coins to their portfolio. Regardless of a person's individual objectives, when the aforementioned steps are followed and care is taken to locate a reputable precious metals dealer, consumers will find that gold and silver are worthwhile investments.