When looking to begin a precious metal diversification, it’s always important that you know your options as far as products are concerned, and today I would like to inform you on the differences between bullion coins and certified rare coins. Bullion coins are modern-day coinages that do not hold any numismatic, or rarity value, thus they trade very close to the daily market spot price of gold. On the other hand, certified rare coins are pre-1933 coinages that do hold numismatic value because they are rarities, thus they hold a higher price because they are sought after by both collectors and investors. Some of the most popular bullion coins are the American Eagles, Austrian Philharmonics and Canadian Maple Leafs, while some of the most popular certified rare coins are the $20 Saint-Gaudens and the $10 Indian Heads.
As far as investing is concerned, both coinages hold their own distinct benefits and risks. For example, bullion coins trade closely to the spot price of gold, meaning that you could purchase them at a low price, and then sell them once the spot price is higher, making them a useful short-term profit-taking tool. On the other hand, certified rare coins trade loosely to the spot price of gold, meaning that if the spot price falls, several of these coinages have proven that they can maintain the value, making them a useful long-term preservation-taking tool. It’s also very important that you understand that modern-day bullion products are deemed “confiscatable” by the United States Government, while certified rare products are deemed “non-confiscatable” because of their historical value. Feel free to browse my website if you seek further information on either one of these popular products.
John Halloran
Senior Gold Specialist - Buy-Gold.org
