Buying Gold Coins and Factors to Consider

To some people there may be a barrier between them and their coin collecting ambitions. This barrier is the perceived cost of buying gold coins which have some collectible values to them. In reality there are many collectible gold coins which are within the price range of even the most humble budget. These include many fine examples of five dollar gold coins which are not anywhere near as expensive as some of the larger denominations that you can find.

One of the solid foundations to buying gold coins for the purpose of owning a vast collection of them is that they are also a very solid investment which has the ability to hold its value like few other commodities are able to do. This is has been proven for as long as human beings have shown an interest in this beautiful yellow precious metal. Gold in the form of gold coins for instance is typically weighed in ounces. The actual value of the coins can be measured as a percentage of pure gold within the coins. This simply means that the budding coin collector will have opportunities to buy gold coins which are smaller, like five dollar coins, and lighter in weight.

Factors to Consider

  • Weight of the gold coin
  • Percentage of gold in the coin
  • Rarity of the coin
  • Condition of the coin
  • Mintage of the coin
  • Historical Values

It is necessary to understand that just because the face value of the coin says five dollars it does not mean that is what its value is. Remember the value is going to be based upon other things like the percentage of gold within the weight of the coin. Still, being able to buy gold coins in the smaller denominations typically means they will have lower prices than the larger denominations.

One more thing to consider is any numismatic values which the gold coins have. These can be based upon several other factors such as rarity, condition, mintage or historical value. These are what the coin collectors will be able to learn about as opposed to merely buying gold coins for their intrinsic values. This is also a lot more enjoyable and educational as well.

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