| The Value of Gold Coins depends on two factors | | | | worth so you do not get duped. For most |
| When determining the value of gold coins, one | | | | investors, keeping up with the dynamic collectors' |
| must consider two factors: Intrinsic Value and | | | | market is a daunting task-they would rather just |
| Collectors' Premium. | | | | buy gold bullion coins. |
| Intrinsic Value and the Selling Price of Gold Coins | | | | The four factors that contribute to a coin's |
| The intrinsic value of a coin is the value of the | | | | collector's value are: |
| gold itself. In other words, if you melted the coin | | | | |
| and sold it as bullion, that would be the intrinsic | | | | 1. Rarity |
| value of the coin. With modern bullion coins (most | | | | 2. Grade (or Condition) |
| of the coins on the market), the intrinsic value | | | | 3. Quality |
| equals the value of the coin. Bullion coins are | | | | 4. Popularity (often linked to historical significance) |
| offered for sale online and at gold coin dealers. | | | | Bullion or Numismatic? |
| Make sure you determine what the dealer's | | | | As mentioned above, the choice between |
| commission and shipping are for the coin before | | | | investing in numismatic coins versus bullion coins is |
| you buy it. The coin should be priced just above | | | | not always a clear choice. The goals of the |
| the spot price, so as to include the dealer's | | | | investor play an important role, and it comes |
| commission. Coins priced below the spot price of | | | | down to personal choice. Those who select |
| gold should be avoided-they are most likely fake | | | | numismatic coins argue for the possibility of a |
| coins. | | | | better return on investment over time and the |
| Collector's Premium | | | | fun of being a collector. Those who select bullion |
| The collector's premium can greatly add to the | | | | coins argue for the simplicity of the investment |
| value of gold coins. As an example, a rare $20 | | | | and not depending on the collector's market for |
| gold piece from 1861 in mint condition sold for | | | | the value of the coin. |
| $2.5 Million! Many investors and dealers advise that | | | | So, there you have it. A gold coin's value can be |
| collectors' coins (also called numismatic, rare or | | | | broken down into intrinsic value and collector's |
| scarce gold coins) perform better as investments | | | | premium. You can make it even simpler by |
| than gold bullion coins. There is a barrier to entry | | | | electing to purchase bullion coins, which do not |
| though: knowledge. You must do research and | | | | have any collector's premium. |
| know what you are buying and how much it is | | | | |