Now that you have a clear understanding of the differences between gold coins and gold bullion and gold bars, we can quickly look at what defines old gold coins and rare gold coins. Also I’ll explain why owning gold is important when you participate in a fiat currency backed economy.

Old Gold coins Vs. Rare Gold Coins
An old gold coin can be loosely defined as a gold coin produced by any government as currency before 1933. When gold coins are produced for currency, they are most often alloys of gold, that means that there are other metals, usually silver or copper, melted in with the gold that is then formed into a coin. This is done to make the gold coin harder and more durable. When purchasing old gold coins, knowing the purity and exact gold content is very important, because you truly do not want to pay for more gold than you think you are getting. Old gold coins often carry a premium over the price of the gold contained within, and there are reasons for this. For one, old gold coins are still somewhat rarer than gold bullion, which adds a little value. Also, old gold coins are very distinguishable as genuine through their complex designs (like a gold Swiss franc) and the obvious aging that only occurs over many decades. Holding some old gold coins will help protect you against banking and market turmoil or collapse, dollar devaluation, and inflation / hyperinflation. Also, because old gold coins are easily distinguishable as genuine, they will work well in barter situations. Rare gold coins, on the other hand, exist in very limited quantities when compared to common old gold coins, especially when the rare gold coins are in graded Uncirculated Mint State Condition. In this case, not only are the coins rather distinguishable as true gold, they also trade above and beyond the spot price of gold due to their rarity and condition. This market opportunity, paired with the fact that rare gold coins are considered to be collectibles by the IRS and therefore have certain tax strategy advantages that gold bullion rounds and gold bars and ingots do not, allows for the realization of extra profits that are just not available outside of the rare gold coin market.

How To Invest In Gold Coins
Diversification is key. Gold bullion serves a purpose, and will always retain value. The downside is it tends to only track inflation, and it can be suspect as counterfeit when used in barter situations, but you should own some. Old gold coins are often smaller than one ounce,which is useful for barter. They are also easily distinguishable as genuine, and this is a solid plus. Though old gold coins often carry a premium over gold bullion, the premium is often returned upon liquidation. Rare gold coins offer the benefits of a strong supply / demand market that creates extra profit above and beyond the perceived profits created by the devaluation of the dollar, as well as tax planning advantages that gold bullion cannot offer. Since every American participates in a fiat currency system, every American should own gold as a type of financial insurance against currency devaluation and collapse. By owning a mix of gold bullion, old gold coins, and rare gold coins, you essentially “have a horse in every race”, and will have many financial options and strategies available to you that those that do not own gold, or only own one type of gold, will not have. To diversify a part of your financial portfolio out of the fiat currency system and diversify into the different types of gold, contact ITM Trading, we are here to be of service.