World of Coins

Welcome to the world of coins. Our website exists to serve as a comprehensive resource for both coin collectors and coin dealers.

What to Know Before Buying Gold Coins

by James on November 21, 2012

Recent news stories questioning what some dealers charge when selling gold coins reinforces what experts have advised for years: do your homework first. Investors should become knowledgeable before purchasing precious metal bullion coins as a financial investment or economic hedge, according to officials of the Professional Numismatists Guild.

"If you don't know your gold, silver, or platinum coins, you'd better know your coin dealer to help you make responsible decisions," advises PNG President Jeffrey Bernberg of Willowbrook, Illinois. "To make an informed purchase of gold, silver or platinum, investors need to be aware of three crucial marketplace factors: the actual cost per ounce of the precious metals; the bullion value versus any collector value of the coin; and timely delivery of the merchandise."

coin indian head

Gold Investors should be aware that gold bullion coins trade at a small premium over the actual spot gold price because they are minted by sovereign governments that charge a fabrication fee. The spot gold price is based on 100 ounce or larger .999 fine gold bars. Gold bullion coins ranging from 1/10 oz to one ounces trade at 3% to 15% premium over spot, based on the coin, it's size (for example, 1/10th, 1/4th, 1/2 or 1 full ounce), and the quantity being purchased. Many major gold bullion dealers typically will sell a single, one-ounce gold American Eagle gold coin at approximately four to five percent over the current spot/melt value (and purchase them from customers at about two percent less than their selling price.) American Eagles, Canadian Maple leafs and South African Krugerrands are some of the most popular gold bullion coins. Investors should contact several creditable precious metal dealers and shop for the best price.

Under normal conditions, delivery of coins you've purchased should be received with 10 to 14 days. However, if at the time of purchase the seller may be aware of a mint delivery problem, it should be disclosed to you that there may be a delay. The PNG does not recommend having coins stored by dealers, instead, verified storage at an independent, accredited depositary is acceptable for many investors, especially if it involves a large quantity of gold.

Investors should distinguish between bullion coins whose values generally fluctuate according to the current price of gold, silver or platinum, and "rare coins" that can carry a significant collector premium based on historical supply and demand. Some U.S. gold and silver coins may be readily available in circulated condition for a modest premium over their bullion content, but those same coins in superb condition may have significantly higher value -- perhaps thousands of dollars above their melt value.
Members of the Professional Numismatists Guild must adhere to a Collector's Bill of Rights and a Code of Ethics that prohibit use of high pressure sales tactics and misrepresentation of the value of items being sold. PNG members must demonstrate knowledge, responsibility and integrity in their business dealings. They also must agree to binding arbitration to settle unresolved disagreements over numismatic property.

Getting Started With Coin Collecting

by James on July 23, 2012

Around the world there are millions of people who collect coins. By no means is coin collecting is not a new hobby. Since the very first coins were struck people have been hanging on to the because of the value of the metal they were made with. It took a while but coins eventually became pieces of art as well as money. There are some very stunning coins in collections and some are easier to find than most beginners would probably realize.

coin quarter head tail

The reasons that a particular coin may be collected can vary widely. Some are flawed. They may have been struck improperly at the mint. They may have been hit by a die that was broken or had some kind of irregularity. These coins are still rolling out of the mint today. If you look closely at each coin in a brand new roll, you just may come across one of these.

Some coins are collected simply for their beauty or unique design. The recent run of 50 State Quarters is an example of coins that are not particularly valuable, but are readily collected by individuals seeking to form complete set. Many youngsters have developed a passion for coin collecting because they were trying to hunt down that one elusive state quarter. The announcement of another run of state specific quarters makes this likely to happen again.

The vast majority of coins are collected for their rarity. Not all rare coins are old, however. Some selective modern coin issues can have low mintages compared to the collector base for the broader series. These coins are probably not the best way for novices to start coin collecting, just because of the initial investment alone.

When it comes to coin collecting there are a lot of ways for someone to get a foothold in the hobby. Most all of us have come across a Wheat Penny. Those little one cent coins are usually worth at least three times their face value. That may not seem like a lot but it is a mathematically huge return on investment. There still a lot of those and other old coins still in circulation. By keeping an eye out and not taking your pocket change for granted, you can start coin collecting right away.

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