A lot of investors prefer gold bullion because they don’t have to pay an extra premium like they would if they purchased a numismatic gold coin. With gold bullion, there are a few issues because the price of gold fluctuates so you will be at mercy of the precious metals market. The market can go up one day and down the other so you have to always pay close attention to the market trends. If you are a broker for a financial institution that offers both numismatic coins and bullion, there will be a bigger percentage of your sales coming from bullion.
Some investors can’t fathom paying an extra premium for a numismatic gold coin no matter what. Then there are collectors that also invest. They look at investing in numismatics as a long-term hold, usually 3 to 5 years.
For example, let’s say that I purchased a PCGS MS-62 $20 Saint Gauden back in 1999 for $250 dollars, I can probably resell that coin for 10 times what I paid for it. In my personal opinion, that’s a better investment than bullion. Numismatic gold coins are beautiful and rare. Numismatic gold coins offer the double play advantage, which is the numismatic value and the intrinsic value so you don’t have to worry about the fluctuations.
Going back to 1999 when you purchased that PCGS MS-62 $20 Saint Gauden for $250 and sold it for 10 times what you paid for it, that’s a huge ROI. I don’t think your stockbroker can or will show you a return like that. Your stockbroker wants you to bet on gold not own it.
Everybody is different and there are benefits to both investing in gold bullion and investing in numismatics. There are many people out there that have crazy success with both. I am just talking about my personal experience and the investors that I met at coin shows and in the industry.
Once you are ready to start investing in gold, it would be wise to consult with a professional in the industry so that they can guide you from inception to the day of successful liquidation. To start with no money would be hard, so there are companies out there like Stash and Acorns that can get you started in the investing arena but are very small. Acorns and Stash will build you up quickly so you can make your very first coin investment with your new stock funds.
There are other alternatives as well such as installment loans. This type of cash will loan you short-term money really fast so that you can make the investment or buy and sell bullion quickly. Then you pay back the loan. This is called using other people’s money to make money. What a brilliant concept! This has been used for years and you can use this strategy for anything as long as you pay it back right away.
You never want to not pay back a loan and damage your credibility to borrow more in the future. When purchasing gold or silver you can buy rounds, bards, and US silver or gold eagles. Whatever works for you. When you are in the market for numismatics, make sure top-tier grading companies such as NGC and PCGS certifies the coins you purchase.
There are many things that can go wrong when you purchase an old coin. The coin can be cleaned which takes away the value. Never wash your coins. That’s a really bad idea and will substantially decrease the value of the coin. When I buy coins, I like to buy mint state coins in either PCGS or NGC in a grade of MS62 or higher.
This strategy has helped me dramatically build my precious metals portfolio and when I unload a coin out of my collection at a show or online I am protected by the grading company and the grade of the coin. Be aware there are companies in China that can duplicate a coin and the PCGS or NGC holder almost identical. This is another issue we have to worry about in the numismatic industry. Stick to local dealers or really reputable dealers in the US.
Stash and Acorns can help you when you are looking to build to the point where you are ready to invest in a coin or piece of bullion. There are so many different options out there. Everything can be accomplished when you want including building a beautiful valuable precious metals portfolio with a mix of bullion and numismatics. Acorns like I mentioned before, will help you put a small amount of money away from each paycheck and invest it for you. You will start building a small savings account.
Once you meet a certain point where you have enough to make an investment in gold or silver you will be able to with ease. This is a smart way to get started without overextending yourself. Stash will invest your money in the stock market.
These two companies are outstanding and I would definitely get involved in them right away even if you’re not going to invest in coins or bullion. Do your research, invest smart, and it will all come in time. Everything takes time to see results. I hope that I helped differentiate my perspective on bullion versus numismatics and the budgeting companies such as Acorns and Stash to get you where you want to be.