Have You Ever Thought About Collecting To Invest? [Global Nuggets Newsletter]
Have You Ever Thought About Collecting To Invest?
With the Queen’s death, it’s not surprising that there has been a surge of interest in people wanting to own a coin in memory of her. There are 35 countries or territories where the Queen was Head of State, each bearing her image in the reverse. This will now change to the new King. Collector and commemorative coins are often misunderstood by regular ‘bullion’ precious metal buyers. These investors are only interested in the price of either gold, silver or platinum, and hope that their investment increases over time. They see that by investing in these metals they are diversifying their portfolio and owning something tangible. We are happy to have served 1000’s of such investors. At MyGold we also sell commemorative and collector coins, and it’s clear that for some, there is a disconnect in understanding the investment potential for such coins. We are proud to be the sole distributor of the Royal Mint Commemorative coin for New Zealand; we also source commemorative coins from Perth Mint, Royal Australian Mint, Royal Canadian Mint and East India Company.
But what makes these coins so different and more expensive?
Whilst most are made out of precious metals, these coins are not sold for their metal value alone. There are two added elements – scarcity and quality. Whereas investor-grade coins have an unlimited mintage (the number of coins struck in a given year), commemorative coins are limited in the number in circulation. Secondly, they are made with much more attention to quality than bullion grade – to achieve a level of finishing termed BU (brilliant uncirculated). For instance, at MyGold, we recently sold a 1KG gold ‘Gothic Crown’ Royal Mint coin for over $180,000. This coin had a mintage of only 22 in the world and was hand-finished to perfection. These coins will undoubtedly rise in value over the coming years, so the buyer made a sound investment choice. The coins don’t have to be expensive either – a release of Beatrix Potter-themed silver coins in 2016 caused a frenzy, and prices have remained strong since. At the time I bought a few sets at around $100 per coin – each beautifully packaged and presented, Today, these same coins are selling on the internet for $400 each. Not a bad investment for an ounce of silver. Give us a call at MyGold and we’ll tell you more.
Precious Metal Pricing
In the world of precious metals, this week has seen both silver and gold slip further. It’s been a rollercoaster time, not just for the world but for gold and silver too, but our advice is to hold fast or buy. Speak to the team for more advice and opinion.
This Week's News
Why are Commemorative coins more expensive?
Royal Mint website crashes due to demand of a new collector coin
Gold hits pandemic low as The Fed raises rate again
The biggest crash in history is here – protect yourselves with gold and silver – Kiyosaki
COLLECT TO INVEST
Collecting numismatic and commemorative coins is a highly effective alternative way to invest in precious metals. Instead of investing purely in the metal price, these coins are restricted in their mintage and therefore their ‘rarity value’. Often sold on the secondary market, these coins will sometimes increase in value significantly above their original price.