How to Invest in American Gold Coins

American gold coins are a great investment. In uncertain economic climates the value of gold tends to increase, but rarely climbs higher than the value of highly collectable gold coins. Although the scarcity of American gold coins will only continue to increase, it isn’t too late to begin amassing your collection.

Difficulty: Moderately Easy

Instructions

1. Do your homework. Whitman puts out a “Red Book” and a “Blue Book” each year. The Red Book estimates what you will have to pay when purchasing a particular coin and the Blue Book estimates what you will receive for a particular coin when selling it to a dealer. In between the two price lists there is room for negotiation.

2. Explore different sources. If you live in or near a city with a population of at least fifty thousand people, there is a good chance that you have at least one coin shop near you. Coin shops are a good resource for investing in American gold coins, but there are other options, such as internet based auction sites and numismatic organizations, also known as coin clubs.

3. Always buy the best specimen you can afford. For instance, the 1851 Half Eagle, a five dollar gold piece, can be purchased for as little as two hundred dollars in VF-20 condition. The same coin in MS-63 condition is valued at over ten thousand dollars, and will increase in value at a more rapid pace than its VF-20 counterpart.

Tips & Warnings

• Join a coin club, it’s a great way to meet like-minded collectors and investors, and increase your knowledge at the same time.

Resources

• Whitman Blue Book
• Whitman Red Book

[kittycooks]

on 10/22/2009 Investing in gold coins is certainly safer than wall street today! Good article.