Bullion and Numismatics.
There are two main categories of precious metal coins, bullion and numismatic coins.
Bullion Coins.
Bullion coins are usually legal tender coins or are used for investment purposes. These coins are more common and are minted in large numbers.
Numismatic Coins.
Numismatic coins are usually rare coins that have added premium due to their scarcity.
Premiums for numismatic coins can vary widely for a host of reasons.
Some specific coins might be minted in small number or limited edition, this doesn’t always necessarily mean there are immediately more valuable, but it could make them more desirable to a collector.
Supply and demand play a key factor for numismatic coins. If a well-established mint produces a popular coin series and only 2000 coins are struck, there could be 60,000 people wanting the same coin, therefore, immediately the price would go up, as the only way a buyer can get one is by offering owners more than they paid for it.
Certain older coins could also fetch a premium because of various reasons, including increases in exposure and desire to possess the coin.
Read about ‘Numismatics’ and ‘Collecting coins and currency’ here.
Minting error coins.
However you want to describe it, faults, errors or mistakes on coins are often valued more than anything else, because these coins are usually extremely rare.
On rare occasions, some mints make mistakes and produce coins that are minted with portraits facing the wrong way, some might have the wrong year stamped on them, others have even been known to have typos.
These coins are a must have for many coin collectors, as these are coins are usually incredibly rare, and therefore more valuable.
Other factors.
Factors such as quality of the coin and the etching, the designer, the packaging, the history, the mint who produced the coins, are also important.
Conclusion.
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If you are looking to make some quick cash, or are simply looking to buy gold coins and have no real interest in the history of money, coins and currency, then the world of Numismatics is probably not for you.
Many coin collectors spend years learning their trade. Just because a coin is a “special edition” doesn’t make it valuable, you need a lot of knowledge when it comes to numismatic coins, otherwise you could be paying a unnecessary premium.
Some gold coins may be desirable because they are rare and carry a value that has nothing to do with their precious metal content.
Bullion coins however, are still an excellent choice for any investor looking to diversify their investment portfolio.
Gold bullion coins allow flexibility, as you can buy small amounts over time in order to build wealth gradually.