Gold Coins are broadly classified into two categories, numismatic gold coins and gold bullion coins.

The difference between numismatic gold coins and gold bullion coins

Gold bullion coins are valued by the quantity of gold contained in them and are mostly used for preserving wealth. Numismatic gold coins are also used for preserving wealth and are usually more expensive than gold bullion coins and are valued not only for the quantity of gold contained, but their age, rarity, how they were manufactured and year of minting. Since numismatic gold coins enjoy historical significance, they can serve a dual purpose. They can be used as collectibles by gold lovers, while buyers can make some profits by selling them at the right time. Due to their rarity, numismatic gold coins are less influenced by spot prices of gold. A recent example that shows the demand for numismatic gold coins is the selling of a rare numismatic gold coin for $697,000. The coin was sold to a British museum, which paid this exorbitant price because the coin dated back to the Anglo-Saxon period. The person who found the gold coin was a metal detector enthusiast, who sold it to an American coin collector. There are many ways in which a gold bullion coin can also get high prices in the market, irrespective of rarity.

•    Part of an unprecedented event: If a gold bullion coin becomes part of any unprecedented event (used by a celebrity, part of a historical debate, etc), its price can soar considerably.

•    Minted abnormally: Since all gold coins are minted through a stringent process, it is very difficult to find coins that are minted abnormally. If a bullion coin is minted abnormally, then the rarity of this condition can fetch a large price for the coin.

•    Out of production: If a gold bullion coin goes out of production, it will improve the rarity quotient of the coin. Such coins can fetch higher prices than coins that are still under production. What to Consider Before Buying Numismatic Gold Coins? Numismatic gold coins don’t come cheap and it is important that you study the various varieties available and their historical significance before you make any purchase. Here are some of the aspects that you should consider before buying numismatic gold coins:

•    Manufacturing date: You should always know the coin’s manufacturing date and the mint where it was made. Such information aids in knowing the correct market value of the coin, so that you can ensure that you are not cheated by a dealer.

•     Proof of authentication: Ask for the authentication for the numismatic gold coin to gauge its purity and historical significance.

•    Research the reputation of dealer: Know about the dealer from whom you intend to purchase the numismatic gold coin. Reputable dealers not only present you with a guarantee on your purchase, some of them also offer money back guarantees. When buying gold coins, it is important that you research on the type of the coin that you want to buy and also on the market price of the coin. It is always advisable to gain as much knowledge on the subject as possible to achieve the desired results because there is a lot of money, time and effort involved in buying gold coins.