Why you should stay away from commemorative coins and only buy gold bullion
If you have gold coins that you bought or inherited, it would be a good idea to know exactly the kind of coins you have and what you can expect when you sell them. All gold is a viable investment to make but not all coins are created equal. Commemorative gold coins manufactured by various mints are often touted as a good investment to make. They may be beautifully designed and can be appealing to individuals but looks can be deceiving.
Commemorative coins aren’t always made of real gold and silver but if they are, they aren’t made of the purest gold. The word “gold” is persuasive and with the price of gold on the rise, they may be tempting especially when comparing the price with that of bullion coins. However, most of these coins have gold plating that makes them cost more to melt and refine. It is easier to sell gold bullion at gold market rates than it is to sell commemorative coins for collector value.
The problem is misinformation, if you are new to buying gold coins you may not be wise to the fact that coins that are advertised as valuable gold coins are not exactly what the media may say they are. Sometimes, there is so much hype about a coin commemorating some momentous occasion like the first moon landing that you would have no reason to believe that when they say it’s gold, they mean it’s some other metal plated with gold.
You could have heard of coins like limited supply commemorative Anzac “gold” coins or that there are only “1000” coins minted to the first moon landing or Captain Cook’s voyage, etc scripted to make you rush to be one of the privilege few to own such coins. These are also sold at incredibly low prices. The spiel is meant to entice, make you believe you are getting something special that only a few people can obtain. If sounds too good to be true then something it probably isn’t. A lot of these commemorative coins come with certificates of authenticity to make them seem more credible. These certificates are worth less than the paper the are printed on since they do not authenticate that the coins are made of real gold.
Instead of putting your money in commemorative coins, you should look at buying gold bullion coins or gold bullion bars. These have real intrinsic value that appreciates over time following the world gold spot price.
In addition to that, you can always sell gold bullion bars during periods of financial distress as they are very liquid. Investing in gold bars protects you against inflation, recession and impending disasters.
Commemorative coins might be nice to look at and they may also be a great way to show support or demonstrate your love for something, like you would buy baseball cards or golf balls, they look good enough encased in glass and occupying your desk, but beyond that, they are not a store of value and gold buyers aren’t particularly interested in them. There are collectors who buy these coins, not necessarily because it makes sense but because they are collected or fans- like comic book fanatics chase limited edition publications of certain comics.