Gold and silver coins in a nutshell

If you want to invest in gold and silver coins,
you must understand the difference between various types of coins. Otherwise, you may end up losing a lot of
money. There are three types of gold and silver coins. Historical, commemorative and investment coins. There are various differences between them,
but from the investment standpoint, the main difference is the size of premium you pay
for purchasing a gold or a silver coin over the sheer price of precious metal that that
coin contains. Let me now briefly explain each type of precious
metals coins. Until early 1930’s, gold and silver coins
were regularly used in business transactions, just like we use paper money today. Governments used to mint them in very large
quantities, by tens or even hundreds of millions. For various reasons, gold and silver coins
were gradually withdrawn from everyday usage. Millions of those coins still exist around
the globe. They are hidden from the sight. They can be found under mattresses of your
grandparents and in our own inheritance from them. So, the gold and silver coins that were once
used in daily purchases but are no longer used as such are called “Historical gold and
silver coins”. Surprisingly, many of those coins, although
old, aren’t bought or sold with large premium over the price of gold or silver they contain. The reason is simple: they are not very rare. Because they were made of precious metals,
people tend to preserve them. So, almost all of those coins are to this
day still somewhere in existence. Sure, there are some historical gold or silver
coins that are rare, and thus more expensive, but that is an exception rather than a rule. Now, let’s see what are “Investment gold and
silver coins”. But before I continue, let me be clear: in
times of our grandparents, when what we now call “historical gold and silver coins” were
used, there was no such thing as “investment gold and silver coins”. They are creation and invention of modern
times. The first gold coin that can be truly considered
an investment coin was minted 1967 and for more than a decade, it was the only such coin
available for purchase. And the first investment silver coin appeared
on the market in mid 1980’s. Investment gold and silver coins are sold
at a very low premium. And that is their key reason for existence:
to closely follow the price of precious metals. Low premiums of investment gold and silver
coins are achieved by being minted in large quantities. Millions investment gold coins are produced
every year, same size, same purity and pretty much same design. Everyone knows them. They are easily recognized and abundantly
available. Which is completely opposite to what we call
“Commemorative gold and silver coins”. Commemoratives are also mostly invention of
modern times. They are typically produced in limited numbers
and as the name suggests, they are minted to commemorate or pay tribute to well known
public figures from the past, popular milestones in history, contemporary sports events and so on. They are often sold at high premium over the
price of precious metal they contain. Sometimes, that premium is worth paying, other
times it’s not. If you purchase commemorative gold or silver
coin, you count on increased numismatic value of the coin rather than on increased price
of gold and silver. You can make a hefty profit on investing in
such coins, but you must understand them. In short, if you primarily purchase gold or
silver coins to invest in precious metals, you should choose to buy either contemporary
investment coins or historical coins that aren’t rare. They are sold at low premium over the spot
gold or silver price and are easily redeemed for paper money. On the other hand, if you are primarily interested
in the increase of numismatic value of coins rather than increase of price of gold and
silver, you should purchase rare historical and commemorative coins. Thank you for watching this video. Please, like it, share it and subscribe to
our channel and we’ll be happy to make more videos like this. If you want to purchase gold and silver coins
like those presented in this video, please, visit the web page on the screen and you will
see the list of trustworthy and reliable gold and silver bullion dealers around the globe
that we recommend. Thank you and goodbye.

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