Buying silver and gold coins can be a great investment opportunity, not to mention a fun hobby. To learn which questions you should ask before buying a gold or silver coin, read through this brief guide.
“Is This Coin Pure Gold or Silver?”
With gold coins in particular, there’s a chance that the coin isn’t made from a solid precious metal. Because gold is soft, some coins are made of gold alloy instead of pure, 24karat gold. Alloys are a mixture of metals, often used to make a valuable metal such as gold less fragile. This lowers the value of the coin—sometimes quite drastically—so make sure you know your coin’s composition before you go through with the purchase.
“What Is the Coin’s Intrinsic Worth?”
Every coin has an intrinsic worth, or melt price: This is the cost of the precious metal contained in the coin. Although the melt value of a coin may fluctuate based upon the current price of the metal in question, gold, silver, and other precious metals always retain a high value on the market. Gold is currently enjoying a great deal of market favor.
“What Is the Coin’s Market Value?”
In order to get the most value from a purchase, you’re going to need to know how much each coin is worth to other people in the coin collecting business—those who are concerned with more than the melt price of the coin. The scarcer the coin, the more valuable it will be; two coins containing the same amount of gold can be drastically far apart in price if one is fairly common and the other is an ancient treasure. Although most coins will only appreciate with time, your investments should always rely heavily on the melt price.
If you’re interested in investing in coins, then you should visit Coins of the Realm. Coins of the Realm is a great Rockville gold coin and coin dealer; we also deal in precious metals. For more information, call us at (301) 340-1640 today.