My Gold News | 21 February 2023

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Collectable Coins – Understanding Precious Metal Coins

The hobby of coin collecting, technically known as numismatics, has been an age-old practice as well as an investment. So, you’re not alone in the idea of combining history, collecting, and investing in the same activity. In fact, you’re probably in very good company. Here’s a couple of tips to help you get started. For general collecting, a coin’s value is generally determined by the market majority’s opinion of the coin and how many people want it. Like the economics you learned in school, supply and demand dictate price. And where there is a short supply in demand, price goes up, way up. Technically, a collectable coin starts with a base value of its precious metal and currency value. From there, the coin’s value goes up depending on how many issued, if there were mistakes in issuance or rarity, and the age of the coin. The historical year of the coin may play in its value as well. Composition refers to its metallic make. If a coin is 99.9% gold, that means it has the highest purity possible, driving up the base metal price of the coin. Finish refers to the condition of the coin now versus when it was issued. For example, proof means it is practically new from the mint and never touched. A brilliant uncirculated may not be as perfect as proof, but it’s a high, untouched quality level. Common means the coin has been handled loses rarity as a result compared to similar coins. The choice of mint can also increase rarity. Some collectables come out by the dozens from one mint, but only a few are issued from another mint. Those few can be treasures in themselves as a result. To find out more, take a look at our MyGold website. We are located only 200 meters from the SkyCity Casino and Auckland’ Sky Tower, right in the center of Auckland’s central business district for easy personal access.

Investment or Hobby? The Value of Coin Collecting

Collecting of all types happens everyday around the world. Books, stamps, records and CDs, even clothing can be collectible. Coins are no exception, and precious metal coins are some of the most valuable. Even better, precious metal coins combine two big positives: the fun of collecting with investment return and profit. The key success factors in profitable coin collecting involve knowing what to look for. Collectable coins have two values: their physical worth based on the metal they are made of, and the rarity of the particular coin itself. Clearly, a coin that is 99.9% gold is going to be worth more just on base value than one with only 80% gold. But when two coins of 99.9% are compared, the year one is made could make it more valuable than the other, with no other differences except collectability. So, knowing the date and historic elements then becomes the second factor for value-spotting. This is known as the numismatic value. No one can predict which coin will be the collector’s treasure, but some factors help predictions. First, the rarity of issuance adds to value. Coins with a very limited production run will be worth more than those with a huge production. Coins with a production mistake are huge wins, but many times governments try to seize these to destroy them. The U.S. is famous for this kind of treatment. The condition of the coin can change value too. A mint proof will be worth far more than a handled coin or one not protected well in storage. A professionally graded coin will also be worth more than one the same year and condition but not evaluated. Remember, keep your investment or hobby. fun. When it becomes work, it’s no longer a hobby. To find out more about how to collect precious metal coins and enjoy the hunt, connect with MyGold online as well as our store located 200 meters from the SkyCity Casino and Auckland’ Sky Tower, right in the middle of Auckland’s central business district.

Things to Watch Out Before Investing in Collectible Coins

If you remember nothing else from the buyer's guide to collectible coins and other online help, one lesson counts the most: research, research more, and then research even more. The national Federal Trade Commission, also known as the FTC, recommends no matter your experience with coins, research is your best defense for problems with suspect coins, the grading applied and even the dealers trading in them. Coins bought for collectibles come with two values: their base metal value and then the aesthetic worth. The second, also technically known as the numismatic value, can drive the value of the right coin very high in price versus another one minted the same year but missing key collectible features. Many reputable dealers avoid unknown coins and trade instead with professionally graded ones. These coins have been evaluated and rated by a certified rating service, and the coin is often sealed in a tamper-proof case with its rating and the agency’s name and license. This asserts the collectability value for buyers and sellers via an objective third-party rating. These are the coins collectors will tend to be the safest with, but there are no sure guarantees. Even “graded” coins have been faked. So, the dealer’s reputation and business longevity come into play as well. Additionally, expect to wait some time before seeing a profit on your coin purchase. Dealers mark up to make their profit, so your coin needs to appreciate for a while to give you a proper return. Sell too soon and you could lose any gain as well as what you paid originally for it. MyGold is one of the most reputable operations in New Zealand, and our store is in Auckland’s business district, 200 meters from SkyCity Casino and Auckland Sky Tower. Find out more on our website too!