Collecting Gold Coins

Collecting gold coins can be both a hobby and a source of income. The first coins in the history of mankind were issued in Lydia more than 3000 years ago. They were used as a means of exchange in transactions. As gold is an uncommon ore, it gradually became not practical to use gold coins as a means of exchange.

Collecting coins as a hobby is similar to stamp collecting in that you derive pleasure from collecting a unique genre of items with collectible value. It can also be financially rewarding as the value of gold coins may increase over time.

Collecting gold coins can be fun. However, it may be difficult to find trustworthy sellers whom you can purchase from or other collectors whom you can trade with. Nevertheless, the internet now provides a trading place for buyers and sellers of gold coins. It connects people around the world and is a convenient venue for finding and buying. It must be noted however that whenever you want to be involved in internet transactions, make sure that you are buying from a genuine seller and not someone who is just interested in ripping you off. Generally, if you purchase coins on a service such as eBay, your purchase is protected from such fraudulent activity.

So, will collecting coins be financially rewarding? It may be a reasonable choice of investment as most countries have reserves of gold to maintain national wealth. Furthermore, physical gold is stable in value and collecting gold coins is a relatively convenient and hassle-free investment.

Gold coins are also frequently produced as commemorative items. It is a good choice as gold is a valuable metal which will show the significance of the event. In the earlier days, coins were frequently issued to mark coronations and other important state events. Nowadays, they are produced for many different occasions. Many banks hold their reserves in the form of gold.

Most collectors try to buy the best coins they can afford for their budget. Frequently, when the best gold coins are up for sale on the internet, traders, resellers and collectors will bid frantically for them. Thus, many will be bought and sold for a price above their intrinsic gold value. The most sought-after are the krugerrand's and sovereigns. These coins are rare and collectors will make high bids to own them.

Another plus point about gold coin collecting is that since the coins are made from gold it is highly unlikely that buyers will end up buying damaged or discolored coins Most gold coins are in excellent or even mint condition.

For a beginner in coin collecting, some things that they need to do include doing some research on the value of different coins - the value due to gold content and the additional value due to the rarity of the item. Last but certainly not least, watch out for fakes. Make sure that the coin has been graded by a reputable grading service to verify its authenticity.

Blake Hygate is the owner of InternationalGoldCoins.com which is an online marketplace linking coin buyers and sellers using the power of the internet.

To read about the gold coins or visit american eagle gold coin.