If you've always been fascinated by gold coins and the wealth that can come from collecting, you might think that running out and buying coins is all there is to it. The truth is that the type of coins, their condition and their history directly relates to the price you pay and their increase in value over time. It's important to know what you're doing before you purchase your first gold coin, so use this guide to help you get started.
Step 1: Subscribe and Learn
The world of gold coin collected doesn't have to be intimidating. Enhance your passion by subscribing to coin collecting periodicals to learn as much as you can about the industry.
Make a list of the aspects that make coins go up or down in value. You'll find that there is a lot more to it than just seeking out the oldest coins. For example, a newer state-minted coin in perfect condition may be more valuable than several older coins. The more coins available for trading or selling, the less value they have.
Step 2: Download Apps
Find the best downloadable app and place it on your smartphone. Keep the app updated and study it carefully. These apps show you which coins are in demand and what they look like. You'll also know what types of wear increase or decrease the value instantly as you're looking at different coins.
Step 3: Visit Trade Shows and Dealers
As much as you're itching to make your first gold coin purchase, you're aren't quite there yet. After studying periodicals and downloading coin-collecting apps, visit come local gold coin trade shows and dealers.
Compare some of the coins you see to those on the app. Then compare mint-condition coins to those with a little bit of character. Take notes on your phone of the differences.
Step 4: Buy Your First Coin
Once you know what to look for in a coin, which ones are projected to make the most profit and which ones you actually like, it's time to make your first purchase.
Keep in mind that buying a coin today does not mean making a profit tomorrow. Keep track of what the coin's value is versus what you paid for it; remember the person selling it to you is making a profit as well. Sometimes the seller has held onto a coin for years to accumulate the profit they desired, other times they may charge a percentage above the coin's value. Either way, plan to hold onto the coin for months, years or maybe even decades to reach the break-even point; and this is before you see a profit.
Collecting gold coins is all about passion, a love of history and long-term wealth building. The more you know before buying your first coin, the more successful you'll be. Ask a trusted gold coin dealer if they will share their tips and tricks on how to purchase the right gold coins. To learn more, contact a company like American Precious Metals Inc. with any questions you have.