Historically, gold and silver coins are one of the oldest forms of currency. Due

to gold’s quality of retaining its outer beauty and its ability to not lose

its luster under various environmental factors, gold coins have been in use for

centuries. Although coins were made from metals other than gold, the value of

gold coins was never in question. Until the 20th century gold, along with silver,

was the benchmark standard for practically all the currency in the world.

Today, gold is viewed as a widely accepted form of investing capital. As a rule,

investors buy gold for two crucial reasons: to protect their invested savings

from political and economic crises and turn a profit due to the constant rise

in the price of gold. The price of gold has been on a steady climb since the year

2000, with a small slide in November 2008, and then with a sharp increase in 2009-2010.

When looking at the historical value of gold, it is worth noting that the value

of one ounce of gold has not changed. This might be hard to believe, but one ounce

of gold today has the same value of one ounce of gold two hundred years ago, when

compared to paper after adjusted values for inflation. Goods and services that

cost 30 dollars between the years 1800-1820, today cost 1200 dollars if not more.

It is likely that inflation will only become worse over the next 10 years due

to more and more money being printed and released into circulation. In this case,

the value of gold and silver will continue to retain its buying power.

The main reasons to buy coins:

1. Rise in value

Gold’s value either stays the same or grows during inflation or during hard

economic times. This is especially true as the American dollar and the Euro are

quickly losing their positions and strength, and are showing all the signs that

they are weakening. In this case gold coins have the ability to outperform all

other forms of investment. Also, in the likelihood of a shortage of gold, the

price of gold will rise dramatically.

2. Rise in the premium on the coins

Many investors are mistaken when they think that the cost of a coin is solely

based on the content of the precious metal in the coin. This surely is a factor,

but there are two others that play a role in determining price, which are the

rarity of the coin and its condition. Many gold, silver, platinum, and palladium

coins of the 19th and 20 centuries are considered by and large wonderful investment

opportunities. The premium, however, on a coin issued during the reign of Napoleon

Bonaparte at the beginning of the 19th century, is much greater than one issued

today. It is not worth discrediting modern coins. There are modern coins

with a value that is based on their numismatic value, and not just their gold

content. Coins in impeccable condition can be worth 100 to 1000 times more than

those in mediocre condition. Coins in the best condition are very liquid, as many

collectors spend many years hunting them down.

3. Personal security

Gold, silver and other coins

for investment stand up to economic and political chaos, and global depressions,

which is the main reason they are secured in central banks. In reality, holding

between 15-20% of your savings in the form of investment coins gives you guaranteed

protection against bankruptcy. Investing in coins is one of the lowest risk ways

to save and earn capital, in comparison to stocks, hard currency, and real estate.

During the last financial meltdown the majority of stocks and currency around

the world (more than 90%) lost value. Real estate also took a hit by losing two

times its value, and today finds itself not a very liquid asset because nobody

wants to sell at such low prices. At the same time, investment coins made from

precious metals gained tremendous value.

4. Liquidity

Precious metals are recognized throughout the world as an alternative to paper

money and a source of finance. Thanks to this characteristic, gold and silver

is traded all over the world, and thus you never have any issues with buying or

selling. Banks gladly take gold coins as collateral for loans.

5. Insurance

Coins for investing are a natural insurance policy; the same situation that might

weaken the marketplace is normally good for the strengthening the value of precious

metals.

6. Comfort

Coins are compact and for the most part do not require to be accounted for. In

addition, they are easy to transport and keep safe, which makes them an ideal

form of investment. You can keep them at home, with friends, at a bank, or in

foreign banks. As well, unlike stocks and real estate, precious metal coins for

investing cannot, under most circumstances, be seized or prohibited from being

sold or traded.