Gold becomes a popular investment in times of financial downturn in the stock market or as a hedge against the declining value of a national currency, especially now that most paper currencies are flat money, without the backing of any commodity. It is relatively easy to convert paper money into gold coins. The bulk of the task lies in finding a reputable source that you can trust to provide authentic coins. This also requires some knowledge of the collectible coin market, as there are factors besides the gold content, such as rarity, that affect coin value.
Things You'll Need
- Paper currency
- Currency conversion calculator
- Telephone or online directory
- Post office box
- Safe or safety deposit box
Compare the values of old, collectible coins and new coins through a coin dealer or coin shopping website. One such site is Bestcoin.com, which groups coins by dates and metallic composition and explains the relative prices of each.
Verify a dealer through a certification agency. There are coin dealer certification agencies you can use to find certified vendors, such as the Professional Numismatics Guild (PNG). Use this system for assurance you are buying from a reputable dealer, or buy coins from government mints, such as the U.S. Mint or the Royal Canadian Mint.
Purchase the coin and shipping insurance, If the coin will be shipped to you. Have the coin sent to a secure postal box to reduce the risk of theft.
Store the gold coin in a secure place such as a safe or safety deposit box. Protect the coin under a protective cover or box to preserve its condition to prevent devaluation.
Tips & Warnings
- Google has a free tool (See Resources) that allows you to enter a currency amount and learn its value in ounces of gold.
- Websites such as goldprice.org and goldmoney.com keep their home pages updated with the current spot price of gold in relation to various paper currencies. Many coins are minted with close to an ounce of gold. Coin value is determined by the amount of gold each contains plus collector's value.
- Buy a new coin and you will pay mostly for the gold itself, rather than any collector's value.
- If a coin had a limited release, you may pay a rarity premium.
- To protect yourself from fraud, take the coin to a third party who can verify its authenticity.
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