The Correlation Between Advancing Gold Bullion Costs and Rare Coins

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With the cost of gold bullion on a steady rise, many seasoned numismatists and new collectors alike are wondering if buying rare gold coins is still worth the cost of admission. Many experts speculate that the price of gold could skyrocket well past $5,000 an ounce within the next five years. With this knowledge in mind, it is important to give some critical thought to our investment strategies.

The short answer is, quite simply, it depends. In any market there are always going to be subtle nuances and fluctuations that can change the game completely. Analyzing the past and present helps us to determine what the future may hold for bullion and rare coins, but there is obviously no way of knowing for sure what is to come.

The main questions now are, at what point does the price of gold affect the investment potential of a rare coin, and are readily available gold coins a viable numismatic strategy? Again, there is a gray area here, but some food for thought can help you to plan future investments wisely.

Let us consider, hypothetically, that the price of gold per ounce reaches $7,000 within five years. This would inevitably cause some of the more common rare gold coins to lose their scarcity value, while driving their bullion value higher. If you are buying rare gold or silver coins with the hopes of selling them to discerning collectors later in life, it may be wiser to consider coins that are extremely scarce, as they will maintain their collector’s value, regardless of surging gold prices.

Gold coins that are readily available to the public may be a prudent investment for their precious metals content, but the demand for them as a collector’s item may diminish as the base cost rises. There is going to be a point where a collector is no longer willing to pay the rising gold premium in order to own a coin that is rare, but not as desirable as others.
gold coins

It is important to consider every purchase carefully, and consider not just its current standing, but what will happen in the future. What seems like a perfect opportunity now may not pan out ideally when the gold price per ounce is double, triple, or even quadruple what it is now.

Buying coins that are rare, but not extremely rare is worthwhile if you can acquire them at very low prices. For instance, many cash-for-gold companies will sell you a rare gold coin for only slightly over spot price, as their market caters more to melting bullion. You can also find deals online that will help to offset the investment cost, making slightly rare coins a more viable investment. Remember that scarce coins are only going to get scarcer.

As you can see, we can speculate all we want, but the bottom line is that only time will tell if the correlation between advancing bullion costs and rare coins will affect the market drastically or not. If you are adamant about only buying from trusted dealers who sell at fair prices, like, you can be sure that your investment will pay off in the long run, whether you choose to invest in bullion, rare coins, or both.