What Coin Dealers Can Do?

As early as the late 19th century, gold coins were in circulation as currency all over the world. They have continued to be important in the world. They may no longer be used as currency but they are still useful in the world economy. Coin dealers have been around as long as people began to exchange coins. They have become an important link in the gold market value chain. If you are looking to buy gold, especial gold coins, you will find a lot of coin dealers.

Most people think that coin shops are only for coin collectors. The truth is most coin shops cater for different types of customers: those who by gold coins for their collectability and those who buy gold coins for their investment value. So, in essence there are two kinds of gold coins you can find at a coin dealer; gold bullion coins and numismatic coins.

Gold bullion coins and numismatic coins serve different purposes. Their values are also determined in a variety of ways. Bullion coins are made of at least 99.5% pure gold. The value of gold bullion coins is based on the metal content. They are specifically bought as long-term investment assets. They are also produced by government mints and have legal tender. Various government mints have their own signature bullion coins. For instance, the U.S Mint produces American Eagle gold coins, the famous Krugerrand is minted by the South African government Mint and the Perth Mint also has its own signature gold bullion coins. Each mint produces a new edition gold bullion coin on a yearly basis.

When buying coins from coin shops keep in mind that a lot of what they offer is for the collector’s market. You can buy numismatic gold coins but keep in mind that they are made from lower grade gold. Their value depends on the design and craftmanship. These coins have a value that is based on how collectable and rare they are. This changes all the time. However, the value of gold bullion coins remains consistent.

Gold bullion coins are less risky. Their value does not depend on their history or their rarity. After all, they are minted every year. They are more available than numismatic coins. Because of the low risk and their availability the market for bullion coins is large. Numismatic coins make great investments but they present more risk and are not as stable as bullion coins. They also have high premiums.

Services coin dealers offer                              

Coin dealers are invaluable in the gold investment value chains. Customers may be collectors or they may be investors looking for safe haven assets. Dealers buy coins from a variety of sources and sell them. They don’t only buy gold bullion coins from government mints but they also buy them from the public. They offer good prices for gold bullion coins and will offer genuine quality guarantees. They are also great sources of information for anyone who wants to buy gold coins. They can also act as brokers. Coin dealers can come in handy for anyone who is considering an investment in gold coins.