People oftentimes would like to clarify the differences between investing in coins and coin collecting. The clients use these terms interchangeably. However, both of these activities are not exactly the same.
Needless to say, we clarify the differences between coin collecting and investing in precious metals within the following paragraphs:
Gold collecting
Investing into gold
Coin collecting vs investing in gold
History of gold coins
Where can I buy gold bars and collectable coins?
Most coin collectors enjoy the process of looking for unique coins as their hobby. They value coins for their numismatics: design, context, metal type, denomination, date of issue, mintmarks, and condition. Coin collectors are willing to hunt for these rare coins worth money even if it entails a larger premium.
The earliest coin collection began in the wake of the 19th century. Nowadays this niche has evolved into a multi-million dollar industry. One of the coin auctions has sold the World’s most valued coin - 1794 Flowing Hair Silver Dollar for just over $10 million in 2013.
Such passion is quite notorious considering the fact that there are more than 400 American Numismatic Association (ANA) member clubs. Such gatherings allow people to discuss the meaning of coins and currency in society and share collecting supplies.
So how does it differ from investing in coins?
Although investors may share the same passion for precious metals with coin buyers, their approach is slightly different. They pursue Investment bars and coins after for their pure metal content and usually entail smaller premiums.
Gold bars usually contain 99.99% of gold and silver 99.95%. They come in all sizes from as little as 1 gram to as large as 1 kilogram. Such variety allows you to thoroughly choose how much money you would like to invest at once.
This creates a good option for beginner investors that are not willing to take big risks which is not usually the case for collectible coins.
So what are the fundamental differences between the two terms?
They lie within the genes of each investment option. Basically, the value of collectable coins depends on numismatic characteristics whereas investment precious metals are purely based on the content of the metal.
Collectable coins suit the types of investors that appreciate the historical value of the coin. They look for rare coins for sale because they usually want something more than a simple financial investment. With your own coin, you can even start your own coin collection.
Gold is known to endure political and economic hardships. When the market is going down, you will still be able to enjoy your coin collection and gold bars. As it usually entails a growth for gold that is almost parallel to silver.
On the other hand, the value of rare collectable coins makes it harder to quantify according to the current market price. Collectable coins come in different purities and from different contextual backgrounds. People that like collecting coins prioritize collecting and then consider the investment value. Professional gold investors usually look to make the most money in the long run.
Did you know that gold coins were commonly used as legal tender? Back in the day various colonists and merchants relied on coins as a trading currency.
However, such a choice of currency often caused the problem of shortage. Therefore merchants frequently had to come up with the alternatives such as tobacco, fur, and lumber.
Like nowadays gold coins were a universal currency, accepted by foreign merchants. Some of the most popular coins were guineas (England), ducats (Netherlands), and doubloon (Spain).
The colonists used European gold coins all around the world until they won their independence. The newly formed United States government established its own currency and began striking its own coins.
American colonialists widely used gold coins as a legal tender before gaining independence in 1776 and their own currency.
Beginner investors benefit the most from merchants that offer a wide variety of products when buying gold and silver.
Our price trackers adjust towards the live gold prices in the market and offer reasonable prices. Moreover, Florinus presents the largest assortment of products in the Baltic states.
So don’t miss out on the trending products within our exclusive selection of gold bars and gold coins.
