Gold Coin Investment Tips for Beginners

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When it comes to investing, precious metals like gold can be an excellent option. It’s considered a hedge against inflation and it tends to rise when other investment vehicles decrease, which diversify your portfolio and minimize your financial losses. And just like other precious metals and investment classes, you can invest in gold in a variety of ways.

However, if you’re looking for the easiest way of making a gold investment, then you may want to consider buying gold coins. Whether you choose gold Krugerrand, an American Eagle gold bullion coin, Canadian maple leaf coins, or a Vienna Philharmonic gold coin, you’ll definitely get better returns when you invest in these gold coins.

Thus, if you’re planning to purchase gold coins today, below are a few investment tips for beginners that you should keep in mind:


Measure the Purity of Gold

If you’re investing in gold coins, one of the important things you should do is to determine how pure they are. Generally, there are two ways of measuring the purity of gold coins, and these can include the following:

  • Fineness – This refers to the weight of the gold in proportion to the total weight of the precious metal. However, you should take note that even the so-called “pure” gold contains small amounts of mixed impurities, including alloy, which manufacturers have failed to remove in the production process. So, if you want to get the most out of your gold investment, be sure to determine how pure your gold coins are. Generally, a pure form of 24KT gold, when determining its fineness, indicates 999.9 parts per thousand of purity.
  • Karat – This is the commonly used parameter when measuring your gold coins’ purity. For instance, if you have a 24KT gold coin, it means it contains 24/24 parts of gold. However, if you’re buying a 22KT, you can expect that it contains 22 parts of gold and 2 parts of other metals to make it more durable.


Check if the Gold Coins are Hallmarked

In addition to purity, investing in gold coins means you should also check the hallmarking details. Essentially, hallmarking is necessary to ensure the credibility and the validity of the claims about the gold coin’s purity. It’s done by laser-etching or stamping the essential details such as the year of hallmarking, identification of purity, and the manufacturer identification.

So, if you want to make sure you’re not cheated with the quality of the gold coins you want to invest in, always find time to check if they’re hallmarked. In most cases, gold coin selections from sellers like Gainesville Coins come with the right hallmarks, which is why buying from them lets you get the best value for your money.


Examine the Packaging

Since gold coins have been a popular way of investing and diversifying your portfolio, you can find plenty of gold dealers and manufacturers in the market. Unfortunately, you can’t expect all of them to be legitimate and trustworthy. So, if you want to take full advantage of your gold coin investment, be sure to check the packaging.

Essentially, tamper-proof packaging is crucial to guarantee the fineness and purity of the gold coins. Also, with this kind of packaging, you can ensure that the items remain safe against adulteration. Besides, you should avoid tampered packages since dealers and manufacturers will not validate any claims about less purity or weight in gold coins with poor packaging.


Consider the Denominations and Making Charges

When investing in gold coins, you may have to factor in the denominations. This usually refers to the number of coins you want to purchase. However, the type of investment, as well as the prices, are crucial in deciding the right denominations for your gold coin investment.

Depending on the size and current trends in the market, you can choose your preferred denominations ranging from 0.5 grams to 50 grams. Regardless of the circumstances, an average gold investor may consider purchasing gold coins in small quantities for privacy reasons. Generally, when you invest in small denominations, you can enter into the transaction anonymously. This means that you don’t need to disclose all your personal information, making your purchase more private.

On the other hand, if you’re investing in larger amounts of gold coins, then you may have to declare your purchase and disclose your personal information. Hence, to make sure you’re making the most out of your investment, determine the right denomination of gold coins that’ll suit your budget and circumstances while providing you with high returns.

In addition to the denominations, it’s also essential to consider the making or manufacturing charges. In most cases, purchasing gold coins is much easier than buying gold jewelry. The former gives you the opportunity to invest in the purest form of this precious metal with lower making charges compared to ornaments like rings, earrings, and many more. So, make sure to check the making charges to ensure a good investment.


Think About The Different Options In Buying Gold Coin

There are many ways to purchase gold coins. Aside from a local jeweler, you can buy gold coins from online dealers, certain banking institutions, and other non-banking financial companies. Also, there are instances wherein you can buy gold coins from pawnshops.

But whatever option you’re going to choose, it’s important that you do some research to make sure you’re dealing with a reputable seller. Always get quotes from several sellers and be familiar with the current market prices. Typically, legitimate sellers or dealers set their pricing according to the current market trends and only charge reasonable prices to cover their costs. Thus, just like investing or trading stocks, making a gold coin investment requires you to conduct diligent research.


The Bottom Line

Indeed, the popularity of precious metals like gold coins has attracted a lot of investors. But regardless of the benefits you can gain from investing in gold, practicing caution is in order when buying these items.

Therefore, if you want to have a good investment experience, follow the tips mentioned above, and you’re good to go.