collecting gold coins?

Question

I was thinking about starting to collect coins as a hobby and as an investment, however they can be quite expensive. Do they lose their value on initial purchase and then appreciate in value over the years? It's just that If I do collect them then I would not like to know that they are worth less than I paid for them. What should I look out for? Which appreciate in value best? any useful help appreciated.

Actually I was thinking of getting the coins new from the Royal mint rather than melting them down. Thanks anyway everyone.

Answer 1

Since you said Royal mint then I believe you live in the UK. You will be paying more than the coin is actually worth. Depending on the price it may take many years to get your money back, plus make a profit. Here in the States people are buying up the gold bullion coins at prices way over it's gold value. Dealers buy those type items for a percentage less than spot value of gold and sell for more than the spot price of gold on the day you buy or sell. Most gold coins from the mints of the world are way over priced. Coins as a hobby is fun and I have done well over the years, the reason is, I don't consider it an investment. I also learn about each series so I know more than the dealer, but never let on that I do. I can get rare varieties of coins for common prices that way. Unless you are very wealthy and don't mind waiting a long time for a profit, leave the gold alone. The Royal mint as well as the U.S. mint make special proof gold coins that are priced way over their gold value. Do to that fact sales are not so good some years and that date becomes rare and the price goes way up. Doing this one takes a chance that he picked the right year to buy. Hope this helps.

Answer 2

I've been collecting since I was a child.. yet still only have a very small collection. The only key things I know for sure about the value and the appreciation/depreciation is that the more you touch it the less it is worth. Look for sealed coins or ones in good condition, then seal them up, so that your hands aren't touching them every time you get them out to look them over. Also, DON'T clean them with anything. The cleaning process reduces their value as well.

Hope this helped ... Good Luck and God Bless!

Answer 3

Its hard to find great deals on coins because there are so many coin collectors out there. For you to do it as an investment will take a lot of research and searching. try craigslist and pawn shops. A lot of times they do not know the value of the coins. They tend to guess prices. If you are doing it as a hobby just have fun and buy ones you like when you have the money. Good Luck

Answer 4

You will lose about 25% of your investment as soon as you make it, due to dealers' commissions, etc., so you have to wait for the price of gold, or the numismatic value of the coin to rise by 25% to get back to where you started. Then you will lose again when you come to sell.

The price of gold is at a 30-year high right now, so it may not be a good time to invest.

Answer 5

The price of your gold coins depends on what gold is doing at the time. You could buy gold at it's price today (just under $800) and then wake up tomorrow and find out that the market has dropped down to ($780 or so). On the other hand it could go up. It's like playing the stock market.

Gold spot prices can be found here:
http://www.kitco.com/market/

Answer 6

go to a decent bullion dealer if your going to collect gold coins yes you do lose a little bit when you first buy them coz the dealer has to make a bit of somthing on them but if you buy the rite coins anything from a tenth of a ounce to a full ounce (wich is a troy ounce just over 31gr) say japanese pandas or austrailian kookaburras there harder to get hold of but seem to be a better investment because they tend be more collecters of them good luck

Answer 7

1