If you are looking to start your own collection it is important to distinguish “collecting coins” from “numismatics” says American Eagle gold coins expert. Coin collecting, is a bit complex as it has many different conceptions and meanings. Numismatics is a scientific study of money and its history. Coin collecting or coin gold coins investment is a very popular hobby enjoyed by millions of people of all ages. Collecting gold coins is considered an expensive hobby once one has started to buy gold coins and concentrate on collecting gold coins investment from a particular period or certain denomination. Dollar and sovereign coins are very popular in this regard.
Which coins should you invest in?
When selecting coins for investment, you should consider the following:
1) Current demand of the coin
2) Supply and availability
3) The level which coins of similar rarity, population and grade are currently trading; NGC and PCGS graded coins only. CAC will be the ultimate safeguard to determine accuracy of grades
Rare coins tend to appreciate the most over the long term. A strong performance history is an essential investment consideration. Coins track record of 100% to 300% price appreciation during past bull and bear markets, may benefits of rising precious metals values that are fueled by investor demand and world events. Lastly, the rising collector demand, based on a finite and limited supply, must be considered.
Tax Benefits of Investment Coins
There are no forms to fill out when you buy or sell investment rare coins. No annual dividend tax to pay because coins do not pay dividends. The capital gains on your gold investment rare coins can only be taxed at liquidation, when your profits are realized on sale. There is no taxation on phantom or undistributed profits as with some investments within the plan and free from tax on the gain, until the time of a distribution of assets out of the plan. As with any investment, you should consult your Tax Advisor, Attorney, CPA or Financial Planner before making any decisions.
