Gold has been regarded as a highly valuable commodity for nearly as long as civilization has existed. Today, people collect gold coins for different kinds of reasons, including wealth protection, portfolio diversification, tax benefits, and building a legacy for future generations, to name a few.
As you can see, gold coin collecting can be highly rewarding, even if you’re doing it as a hobby. However, there’s so much to navigate as a newbie, including lots of coin options, which can make the whole idea feel overwhelming.
In this guide, you will learn all the basics of collecting gold coins as a beginner.
Start By Being Familiar with the Basic Industry Terms
When you dive into coin collecting, you will come across terms and phrases you have probably never heard of before. So, let’s look at a couple of popular terms and what they mean:
- Numismatist: someone who studies or collects coins and usually has expert knowledge in their craft.
- Observe the front or “heads” side of the coin: It often features the portrait of an important person, like a leader, or sometimes the symbol of a nation. It can also have the year the coin was minted and a national motto.
- Reverse the back or “tails” side of the coin. It usually has an image in the center, the face value of the coin, and a mint mark, among other vital details.
- Coin set: A coin set includes a couple of coins with a common attribute, usually sold as one. The common attribute can be date, date and mint, type, or type and mint.
- Circulated and uncirculated: Circulated coins are coins that have been released to the public for use and usually have some level of wear. Uncirculated coins are those that have never left the mint and are in perfect condition, hence the name Mint State.
- Grade: coins are usually graded on a scale of 1 to 70 based on their condition, with 70 given to Mint State coins.
Find a Reputable Seller or Dealer
It’s much easier to buy gold coins today than a few years ago. You can simply shop and order online. But before buying your first coin online, get a credible seller. At a minimum, ensure they are a member of relevant industry bodies such as the American Numismatic Association and the Precious Metals Association. Good customer reviews, too, are important.
Start Small, with the More Recognized Coins
Now, you probably have an ambitious goal in mind. However, you don’t want to go all out at first, as you are still learning the ropes. Start by making small purchases here and there and build your way up. You also want to be choosy. So, stick to the most recognized coins, for instance, the American Eagle gold 1 oz coin. This ensures you are investing safely.
Set a Budget to Avoid Impulsive Buying
Buyer’s remorse, which is the regret that comes after making a purchase, is also very real in the coin-collecting space. You want to avoid impulsive buying, as this is usually a bad idea. Have a monthly budget, and take time to consider each purchase you are making. You can even create some criteria or checklists to help you assess the coins you want to buy.
Work Out How You Will Store Your Gold Coins
As a collector, you want to maintain your coins as near the buying condition as possible. The most secure options are usually gold deposits or safety deposit boxes. But you can also store the coins yourself.
In this case, you need to make special arrangements to ensure your coins are safe from environmental hazards such as moisture, insects, and potential burglars. If your coins come with protective containers, you can keep them there. However, you can also buy coin albums and folders for easy storage, sorting, and display.
Network with Other Gold Collectors
Gold collecting is a craft you get better at with time. But if you want to become an expert faster, learning from more experienced collectors is the secret. And thanks to the internet, there are many groups and forums online where you can interact with other gold collectors.
Start Your Collection with the American Gold 1 oz Coin
Gold collecting is a great hobby to pick up. Not only is it exciting, but it can actually help you build a legacy. Not forgetting, it grows your wealth. With this guide, you should be able to start on the right foot.