Despite rising prices, especially for gold, investors can still find forms of precious metals that don't require that much money to purchase. For the investor who simply wants to park some money in a physical investment that isn't likely to become obsolete or experience a crash, coins made of precious metals are perfect.
Coins are easy to store and have a low bar for entry. Plus, they have the advantage of looking marvelous - they're shiny, clean, and gorgeously designed. Take a look at some considerations if you want to start investing in coins.
Silver vs. Gold
One of the more obvious features you'll see when you start buying coins is the metal itself. Typically, you'll have a choice between at least gold and silver, if not also platinum and a few other metals; your choices depend on where you buy the coins.
Coin value is based on metal type, rarity of the coin, and the condition of the coin. For the most part, the prices you pay (and the prices you get, if you cash in the coin) are based on metal type, or scrap value. Scrap value doesn't change if the coin is in great condition or terrible condition.
Gold commands more money than silver, though the actual prices change daily; however, in late September 2019
, at least, the price of gold per troy ounce was in the $1,500 range, while the price of silver per troy ounce flirted with $20.
For people without a lot of money to spend, starting with silver coins is the easiest way to go. For people with a little more money, gold could be in reach because of coin size.
Small vs. Large
Coin size affects price because a smaller coin will, of course, weigh less. So, if you have some money set aside to buy coins, and you really want to include gold coins in your haul, ask the shop you're at about smaller gold coins.
The typical gold coin that many people have in mind is about 1 troy ounce
in weight and is about the size of the silver dollars that used to be in circulation. However, you can get coins as small as 1/10 troy ounce, and the price will be one-tenth that of the larger coin.
You'll still pay a small premium over spot price, or the actual value (this is how the store makes money off the sale), but it will be a small percentage of the total cost.
Scrap vs. Rarity
Now, about rarity. If a coin is super rare, it should command a very high price due to its collectability. The value of a rare coin may fluctuate if the coin is in horrible shape.
Rare coins have one really big problem for the investor: They can be sold only to someone who understands their value. If you're trying to stock money away in metals for an emergency and find you need to cash in a coin, you may struggle to find a shop with the resources to judge and price a rare coin.
That doesn't mean it can't be done, especially if you have a rare coin shop in town. But if you're selling the coin at a pawn shop or gold-buyer's storefront, a gold coin sold for scrap value will get you faster cash.
Coins vs. Rounds
Finally, not all coins are truly coins.
True coins are from a federal mint (or a country's national mint, for coins from other countries) and technically have a face value that makes it legal money (e.g., the silver quarters that used to be in circulation will always be usable as quarters no matter the price of silver).
Sometimes what you find in coin form is actually a round. Rounds are not legal tender and usually don't have a face value, and they come from private (non-government) mints. They're like a small bar of metal that's been melted and reshaped into a coin like shape with a design. They do have scrap value.
If you want to learn more about gold and silver coins, as well as purchase a few, contact Gardena Jewelry & Loan Company
.
