The Appeal of Rare Gold Coins

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Rare gold coins are attractive investments for many different reasons. Some of the people who like buying rare gold coins buy them principally because of their historical importance. The US Mint has produced many different types of gold coins throughout history and some of them have become spectacularly valuable. Rare gold coins aren’t the only products available from the US Mint that have accumulated a great deal of numismatic value, however, as silver coins are also on the market that are worth much more than the value of their bullion content.

Gold and silver were used at various times as currency. Monetary systems have also been based on both of these metals. Rare gold coins usually come from an age when gold currency was in widespread use. Today, the denomination stamped on a new gold coin has no real relation to the value of the gold of which it is made but, at one time, gold coinage came with a denomination and was traded just like cash is today. This has created an incredible variety of gold coins throughout history and many different ways that people can get involved in this interesting investment.

US Gold Coinage

Today, the treasury produces the American Eagle series of coins, which includes gold coins of various denominations. These coins are principally purchased by bullion investors, as coinage is one of the easiest forms in which you can own bullion. Where rare gold coins are concerned, people are generally looking for coins that are not only hard to find, but that are also typically quite old.

Until the US was established as a nation, Spanish money was generally traded on the North American continent. The Spanish dollar was not the national currency, obviously, but it was the most popular currency. The early currency of the United States was gold and silver and those specimens are worth a great deal of money. Silver dollars from this era are among the most prized possessions that the people who own them have.

Rare gold coins sometimes come from this long ago, but they can also be of a much more recent vintage. Some specimens of the Double Eagle, for instance, are extremely valuable but are only around 100 years old. Nonetheless, they are in tremendous demand among investors and are highly sought after by people who simply have an interest in historical coins and who aren’t so much interested in them as investments.

Why They Work

Rare gold coins can make excellent investments because of the bullion of which they are made, of course, and that is likely the first thing that many people see when they look at these coins. Beyond the bullion, however, these coins have numismatic value and it’s important to understand why numismatic value can actually be a good investment.

After a coin has had its run of production completed, there are never any more of that type produced from that era. This is not only a function of the treasury not producing them; it’s a function of time. These coins become part of a limited quantity of in demand items and, as that quantity diminishes, demand often increases and, therefore, price increases.

This type of value isn’t something that is as accurately indexed as the value of precious metal. The value, however, sometimes grows considerably over the course of a person’s lifetime, making a coin a potentially very profitable investment. Most people who do purchase rare gold coins for investment purposes should hold onto them for at least 10 years before they expect to get any type of a substantial profit. When they do, however, that profit can sometimes be very impressive.