What to look for in Numismatic Gold Investments

The following are steps to start your own numismatic gold coin collection.

Acquiring a numismatic gold coin is like owning a beautiful work of art and a precious part of history, which on its own is an attractive reason for starting a collection. But for long-term gain and a legacy of numismatic gold, follow these steps to start a collection.

Acquisition Intention: Be clear about your intent for the purchase you are about to make. If you are purchasing coins as a safety hedge against inflation of geopolitical instability then concentrate on bullion coins but if you want the added protection against government gold confiscation or the long-term performance of rare coins attracts you then pursue numismatics.

Thorough Research: When you begin looking at collectible numismatic coins, there are a host of options to choose from but you must not be swayed by hype and pressure of any given seller because that is not how a reputable dealer conducts business. Instead perform an extensive search about the background of the coins you contemplate collecting. Ask to see certifications and study the history of the coin. Don’t be in a hurry or feel pressured to buy, as that is a very exploitable trait by disreputable people. The very fact that the coins are rare may mean it could take some time for collectors to find the coins that are desired.

Understand Grading: Third party graders such as the NGC (Numismatic Guarantee Corporation) and the PCGS (Professional Coin Grading Service), grade numismatic coins after taking into account the rarity, scarcity, demand, circulation and condition of the coin. Higher graded coins are certified and hence trade at a higher price as well. Make sure you trade only in coins with a NGC or PCGS certification.

Study the Market: There are excellent lists such as the Greysheet bids and the Coin World Trends that, while technical, can help you keep track of the demand and supply of numismatic gold coins in the market. Short of becoming an expert on the subject it is well to develop a relationship with a respected and established dealer that you can trust to give you the best advice for your situation and comfort level. One way to do this is to check with the Better Business Bureau. Do not let opportunities pass you by, make sure you are well aware of market conditions as you enter the trade. Learn to read the signs and develop some sense of insight into the market to be able to make near future predictions.

Expert Advice: Expert collectors, can give you sound advice before you begin your collection. They have faced similar questions and queries and they can help you in what to look for and to not make the same mistakes they have. There are tricks and tips by which you can maximize your profits depending on the market conditions and experts can advice you on those as well. Do not mistake brokers for experts as they will only be interested in procuring a 20% or 30% procurement fee for getting you second or third hand coins.

Beware of Scams and Counterfeit gold: Because of the price mark up over gold content, it is not unheard of to run across the odd counterfeit numismatic gold coin. With the advent of technology one can create precise dies and copies of the coins and then hook unaware collectors on the internet. Here again it is important to deal with a reputable dealer. Make sure you buy your coins after they have been tested and certified by the reputable trade organizations NGC or PCGS.