Coin dealers trade in: Bullion coins and bars, and rare coins. When preparing to purchase coins as an investment or a collectible, it is important to understand the difference between precious (bullion) metals, and rare coins.
Bullion coins & bars are minted for the purpose for consumers to invest in that precious metal. You have the choice of investing in gold, silver, platinum, or palladium. Most bullion coins and bars have a metal purity of at least .999 or greater, although sometimes alloys are added to increase their durability. While they often have a “face value” and could be used as legal tender, their metal content alone is worth much more than is listed on the coin. The two most common types of bullion coins are the American Eagle series and the Canadian Maple Leaf series. Many other countries also mint bullion coins, such as the Australian Gold Kangaroo and the South African Krugerrands.
Rare Coins were minted, with the exception of special proof issues, as spendable money to buy goods and services. Rare US silver coins were typically minted before 1965, and rare US gold coins were minted before 1934; however, dates of rare coins vary by country. While there are thousands of coins that are sometimes thought to be of value, many are actually quite common. The age of a coin does not always dictate its value. For example, the “Lepton” is an ancient Roman Bronze coin minted between 103 – 76BC. It is a common find and usually has a wholesale buy value of less than $10.
Consumers get advertisements for “rare coins” and precious metals from telemarketers, in the mail, and on television. Many times these coins are priced so high they are not worthy investments. Always talk to a coin expert like Paul Albarian, who has over 22 years of experience in the market, for free advice.
Many financial advisors tell their clients to have between 5% and 15% of their portfolio in rare coins and precious metals as a hedge against inflation, weakening of the US Dollar, and world instability. Do you know someone who is looking to invest, and is concerned about a weakening US Dollar? Have them visit our office to learn more about the rare and bullion coins offer investors!