Rare Gold Coins: An Asset to Own for the Future

An interesting news story about gold coins is uncovered by BBC News Suffolk on April 14, 2010. A hoard of Iron Age rare gold coins found in a pot in a field of Suffolk in 2008 is supposed to go on display at a museum after being valued at £300,000. Colchester and Ipswich Museum Service is planning to raise money to buy this 840-coin hoard and display it at Ipswich Museum.

Owning rare gold coins is a productive hobby that can result in potetial gains as well. In the past six years, the value of gold has nearly tripled in value (from $500/oz in 2005 to $1500/oz in 2011). Looking at this upward trend in gold prices, more people are realizing that owning in gold coins is a nice leisure pursuit as well as a sound financial decision.

Why Investment in Rare Gold Coins is a Profitable Idea?

Numismatic gold coins can retain their value better than newly struck gold coins because of the following reasons:

• They hold an extra value of scarcity and quality along with their intrinsic gold content.
• Owning a piece of historical gold coin is like investing in history itself.
• Historical coins can maintain value even when the price of gold is falling.
• When put on auction, these coins bring an extra profit to their owners.
  Due to these reasons, many intelligent gold buyers make rare gold coins as part of their overall portfolio. In the current economic scenario, where nothing is stable and recession is always a looming fear, these coins are a good safe haven.

A Few Tips on Acquiring Rare Gold Coins

Here are a few tips suggested by market players in the field of gold coins:

• Keep a close eye at the gold prices. Although the value of a numismatic coin does not depend on its gold content alone, yet it can give you a sound estimation of its worth. Financial newspapers and websites can prove to be a big help in this matter. It is better to cross check the details for the sake of avoiding any confusion. This will enable you to make sure that any coin you are buying is actually worth what you are paying.
• Calculate the price of the pure value of a gold item. For instance, if you wish to buy a $20 Liberty, then you have to measure its value for one ounce of gold. Suppose, the prevailing gold price is $1500/oz. In this case, the value for the gold content of a Double Eagle will be at $1500. Depending upon the rarity and condition of the coin, the actual price of the coin might be a lot higher. However, this is a crucial step that goes a long way while acquiring gold coins.
• It is also a good idea to attend some coin shows before making an buying decision. The coin shows are generally very informative and give a good insight into various numismatic coins. These shows will tell you what coins are available and at what prices they are generally sold at. Through this knowledge, you will also be able to develop your knowledge and expertise in the industry.
• You can also purchase a coin guide in your local book store. However, make sure to buy the latest edition as the prices for such coins keep on changing due to a number of factors.

Rare gold coins can sell for a surprising amount of money. In July 2002, a rare $20 1933 Double Eagle gold coin sold for a whopping sum of $7,590,020 making it by far the most valuable coin ever sold to date. While not every investor can be lucky enough to find the coin that would bring that amount of money, everyone can find pride in owning a piece of history.