Have you invested in the best coin

What to consider when investing in gold coins

On October 10, 1989, the time had come: the "Vienna Philharmonic" gold coin was offered in stores for the first time and quickly became the best-selling investment coin in Europe. Anyone who struck right at the beginning did everything right. Because while savings account interest rates plummeted in the following decades, the gold price developed in the opposite direction. "The gold price, to which the performance of the Vienna Philharmonic gold coin is also linked, has increased by around 280 percent since 1989," says Münze Österreich AG, the official and only mint in Austria.

But not only the material value of a coin is decisive for the increase in value. In addition to the classic bullion coins, collector coins are also enjoying increasing popularity.

Collecting coins is not only an exciting hobby, but in times of mini interest also after an interesting return opportunity. As with all investments, however, you have to accept the risk of loss, because no one can make a reliable statement about the future performance of coins. In any case, coin collecting requires a lot of specialist knowledge and sometimes a good dose of luck. We explain the most important basics.

Differentiation between investment and collector coins

First of all, you have to differentiate between investment and collector coins. As in the case of the German five-euro coin "Blue Planet Earth", the latter can achieve great increases in value because the price results from the balance between supply and demand on the collector's market.

It is extremely difficult to predict which coins have potential: Important factors are usually the lowest possible mintage, the coin theme, the highest quality and possible technical innovations in coin minting, such as the first use of a polymer ring on the "Blue Planet Earth" ". In addition to the issue or material value of collector coins, there is a surcharge for the collector's value depending on market demand.

This is different with investment coins - also known as bullion coins. The coins, which usually appear annually in a similar design, are traded at a low premium to the price of the metal (mainly gold or silver, platinum). An ounce of gold currently costs around 1,300 US dollars, so a one-euro investment coin made of pure gold should only cost slightly more.

There are also opportunities for an increase in value if the price of the metal it contains rises. In September 2011, for example, an ounce cost more than 1,900 US dollars. This example shows that you can make losses with investment coins - after all, the price is currently significantly lower than the all-time high.

Also read:Where valuables are safe and inexpensive

The most important investment coins

"I would always invest in Krugerrand, also because it has the lowest purchase and sales costs," recommends gold expert Martin Siegel, managing director of Stabilitas GmbH. The South African bullion coin has the largest market share among gold coins.

Other well-known gold investment coins are Maple Leaf (Canada), Philharmonic (Austria), Panda (China), American Eagle (USA), American Buffalo (USA), Britannia (Great Britain), Kangaroo / Nugget (Australia) or Lunar (Australia) . Investment coins are also available in silver or platinum.

In which metal should you invest in coins?

Gold coins have a very decisive advantage: they can usually be purchased without VAT. This is not the case with platinum or silver - and 19 percent VAT makes a clear difference. However, the price of silver is much more volatile than that of gold. An ounce currently costs around $ 15. The all-time high, however, was around $ 50 - more than three times as high. Those who bet on rising precious metal prices could achieve higher profits with silver. In the opposite case, however, there is a risk of higher losses.

Recently, collector coins have also been made in other rare metals such as titanium. In contrast, many of the historical coins were minted from copper. However, gold and silver remain by far the most popular metals in this area as well. The lower mintage due to the higher price speaks in favor of gold coins. Silver coins are much more affordable - that's why the collectors' market is larger.

Important areas for collector coins

Coin collecting areas are a dime a dozen. Local coins are particularly popular in Germany - from the German Empire, through the era of divided Germany with specimens from the GDR and the FRG, to the current euro coins with a polymer ring. Euro coins from all member states are among the top sellers among current coins across the continent.

Other important collecting areas are sporting events such as the Olympic Games or soccer world championships, ancient coins from the Roman Empire or China, portraits, animal motifs or special topics such as space travel.

The first issue of a domed one-ounce silver coin with a colored image of the globe from Australia ("Earth and Beyond") now costs five times as much as when it was first sold in 2018.

In general, experts recommend starting with modern coins as a collector. And then, if you are interested and become more knowledgeable, approach older coins.

Collector coins: what to look out for

In addition to an attractive topic, the mintage is particularly important for the future performance of collector coins: the lower the number, the greater the chance that you will be able to sell your copy more expensively in the future. For example, some gold coins appeared in very small editions of just 50 to 150 pieces worldwide.

As a rule, the first issue of new, innovative coins is also potentially more sought-after. Recently, for example, the first Hybrid Gold Bitcoin coin, a combination of an ounce of the precious metal with a 1/50 proportion of the most famous cryptocurrency, was launched on the market with a mintage of only 100 (Four Guardians theme). This coin could be something for those who believe that Bitcoin will make the breakthrough and will significantly increase in value in the future.

The quality of the coin is also important: a polished plate (mirror finish) is of higher quality than a stamp finish. In order to maintain the quality, valuable coins should be specially protected (for example, kept in hard plastic cases) and not touched with bare hands.

As a rule, you shouldn't clean coins yourself - the patina is a sign of authenticity in historical specimens. More modern coins usually come with a certificate of authenticity. You should definitely keep this for a possible resale.

The purity of the metal used is decisive for the pure material value: gold coins, for example, are 99.99 percent pure, as well as with significantly lower proportions of gold.

Biallo tip

When collecting coins, patience is required, as the value of a coin often only increases over the years. The most important thing is having fun collecting anyway.

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