Benefits of Acquiring Numismatic Gold Coins

Any coin having its worth more than its own weight in gold is termed as a numismatic gold coin. Various factors influence the price of such coins, like its age, the historical event the coin is associated with, the manner in which it was manufactured, where it was minted, and how rare it is compared to other coins. Each coin has a figure etched, symbolizing a particular meaning. A coin that represents certain historical events is typically priced significantly higher than similar coins.

Advantages of Numismatic Coins During Recession

The US has witnessed fifteen recessions since 1919. During these phases, the performance of numismatic coins has been good. For instance, between 1981 and 1989, the CU 3000 Rare Coin index surged 660%.

Advantages of Numismatic Gold Coins over Bullion Gold Coins

A bullion coin is a coin valued by its mass and purity. The price depends solely on its gold content. So why are numismatic gold coins better than bullion coins? The answer lies in history chapters. Throughout history, there have been periods when the right to private ownership of gold bullion has been revoked by the government. For instance, in 1933, during Franklin D. Roosevelt’s presidency of the US, by means of one Executive Order No. 6102, citizens were made to turn in their gold bullion and in compensation they were given highly inflated paper currency of equivalent value. The laws, at that time, forbid every citizen from privately possessing bullion gold coins and it stayed this way for the next 40 years. However, even during that period, numismatic collectible gold coins were exempted from the ownership restriction.

Such acts are still in the law books ready to be executed anytime. Studies have shown that numismatic gold has appreciated substantially over gold bullion in the last 25 years, rising even during periods of devaluation and inflation. Numismatic gold coins are limited in number, thus besides their gold value, they also enjoy collectors value. Thus, even if the value of gold were to fall, numismatic coin prices could rise. For example, from 1987 to 1989 the price of gold bullion fell 10% while rare coins rose over 660%.

A reason that some individuals prefer numismatic gold coins is that, unlike most other investments, financial disclosure of such coins is not compulsory. Acquistions of rare gold coins can be done confidentially.