How to Buy Rare Gold Coins

An exhibition of rare coins was organized on February 27, 2011 in Salem, at the American Legion’s Coin Show. This exhibition, sponsored by the Salem Coin Club, featured 40 collectors from five states of the US. These collectors traded their rare gold, silver, coins, paper money and other treasured items at the show. The value of these rare gold coins was estimated at around $10-15 million. Some of these collections were approximately 2,000 years old.

Although rare gold coins may present a seemingly lucrative opportunity, it is better to gain some knowledge of the market before you start acquiring. There are many informative resources online as well as in print to make new traders familiar with the relative importance of various rare gold coins. We also have experts available to speak with you at any time.

5 Useful Tips for Buying Rare Gold Coins

Here are some guidelines suggested by various gold connoisseurs. These are important to know before one begins buying rare gold coins:

  1. Popularly called the “Redbook”, The Guidebook of United States Coins is a good source of knowledge about rare US coins. The book lists every coin ever minted by the US government. It states the original mintage date of each coin along with a brief description of its history. One factor that must be kept in mind while referring to the Redbook is that it lists prices that may not represent the current market value. This is because the Redbook is updated only on an annual basis while the gold coin market trades throughout the year.
  2. PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation) are two leading coin grading firms whose standards are accepted industry-wide. It is advisable to buy only those rare gold coins that have been graded and certified by these grading firms. Buying coins that have been graded by other services may pose a great risk for investors.
  3. A historical coin is not always rare. The key factor establishing the rarity of a coin is the number of its surviving specimens available today. For instance, some issues of small original mintages may have high survival rates today, so they are considered relatively less scarce. On the contrary, some issues with high original mintages may have experienced great attrition, primarily due to confiscation, and thus are very rare today.
  4. Estimating the pure value of a rare gold coin can give you an idea of its worth. This pure value is based on the current gold price and the weight of the gold coin. For instance, if one is lucky enough to acquire the American Liberty $20 Gold Coin, the pure value can be estimated beforehand. Let’s say the current gold price is $1,000 per troy ounce. This means that the pure value of $20 Liberty (which is one ounce in weight) would be $1,000. Of course, the scarcity factor and quality factor will add to the value of a rare gold coin.
  5. It is also a good idea to investigate various coin dealers. While acquiring rare coins, one may want to buy them from a dealer who is reliable and knowledgeable and can help clients make the right purchase. Some people prefer to go to a reputable brokerage firm that provides them enough resources in the form of newsletters, periodic reports and complimentary portfolio updates.

Rare gold coins can be fetch very high values in extremely rare. In July 2002, a rare $20 Saint-Gaudens Double Eagle was auctioned for a whopping $7.59 million, making it the most precious coin ever sold. While not everyone can get a hold of the coin that will bring such a huge amount of money, individuals can at least enjoy the pride of owning a rare gold coin.