Gold Bullion Coins versus Numismatic Coins

In the first article posted on the Gold Investing Simplified web site, Basic Gold Investing, I recommended you start with gold bullion coins. Assuming you are a gold investor (for whom I created this blog for) and not a gold coin collector, that advice still stands.

Pictured above is a $20 Liberty Double Eagle. In its higher Mint State grades, this is considered a numismatic coin and can fetch several thousand dollars. If you invest in this coin, it is obvious the price is not based on the gold content (currently around $900) but on the coin itself. The price for numismatic coins is determined by the particular strike, scarcity, condition (or state of preservation) and demand.

Investing in numismatic coins is not for casual investors. If you are investing on your own, stick with gold bullion coins. If you have the finances and are ready to move up to numismatic gold coins, work with a reputable dealer that has been in business for many years. It will greatly lessen your chances of making bad investments.

Happy investing!