As with most collectible items, there are two ways of looking at your coin collection – as a hobby or an investment. However, due to their precious metal content, a great advantage of gold and silver coins is that they carry intrinsic value.
As a collector, your primary interest may be the coin’s unique design. Perhaps you have a personal connection to the theme of a particular series. Whatever your reason for the purchase, these coins become part of your collection. However, even as a collector, you are also an investor. You are in fact, trading your dollars for an investment into precious metal.
NUMISMATIC AND BULLION
There are two broad categories of precious metal coins, and two broad categories of people who buy them. Numismatic coins are those, which are worth more (often much more) than their metal content. Collectors primarily seek after these. Bullion coins are those, which are valued at or near their metal content. Investors primarily purchased these.
There is, however, a third category that straddles the other two called “semi-numismatics.“ That topic is explored in another blog post HERE. Because of the significant price differences, it is worth considering which category will best fit your goals when selecting coins to buy.
WIDELY DIVERSE THEMES AND DESIGNS
The major world mints are offering more and more releases every year for buyers to consider. Some releases are specialty coins with very limited mintages (total coins produced). Some have higher mintage totals but still display special designs or themes for each release. Others have similar designs from year to year with no imposed production limits. These are minted at whatever volume the market demands.
While the variety is great, it can also be somewhat overwhelming. There is also a very active secondary market for old coins (in all possible conditions). The options for precious metal coin buyers are seemingly endless. But as long as you purchase from reputable dealers at competitive prices, there is no wrong approach to buying gold, silver and other precious metal products.
STACKERS AND COLLECTORS
Stackers are investors who are singularly focused on accumulating as many ounces of metal their budget can afford. There is usually little regard to the design or series they are buying. In addition to coins and rounds, many also purchase bars. Bars are generally the most efficient form factor in which to store larger volumes of gold, silver, and platinum.
Collectors are more selective and willing to pay higher premiums to buy coins that specifically interest them. They also target coins and series that have higher potential for appreciation over time as collectible items. Collectors are often interested in both old and modern coins.
Most precious metal buyers fall somewhere between Stackers and Collectors. They look for good deals on items that feature themes or designs that interest them. Honing in on popular series from quality mints is a fun and rewarding for most buyers in building their collections. This, in turn, builds their precious metal portfolios. Looking for coins that have the potential to appreciate in value (above the spot price) can really be rewarding.
In the end, both collectors and investors alike can rest assured that the gold, silver, and platinum they buy are a tangible investment in their financial security.
At BOLD Precious Metals, we place high priority on delivering a broad inventory that appeals to the full spectrum of buyers. We are also committed to providing our customers the very best prices possible. We are uncompromising when it comes to customer service, ensuring your satisfaction with every #BuyBOLD experience.
Through our BOLD Thoughts blog, newsletters, and product descriptions we will inform and educate you as you peruse our site to decide what to buy. Contact us anytime with questions about the products we carry or for recommendations concerning items or series that fit your specific goals.