Prior to gold coin investment, there is one common principle every investor should know and that is to not judge the value of coins based on its appearance. People are quick to make judgments based on their first impressions and this is against the norm of the trade. This rule, however, is not applicable to gold and silver.
There is a fine line between the face value and the actual worth of coins. If you are curious on how you can really inspect the value of gold objectively, here are a few lessons that are worth knowing.
The Face Value
The coin's face value is often written, stamped or printed on the currency itself. It is basically the denomination of the coin's price serving as the legal tender of the coin. The government is the only authorised entity who can issue and confirm the face value. In simpler terms, it generally tells you the value of the currency itself rather than its trade value.
Actual (Intrinsic) Worth
While it is easy to determine the coin's face value, it is fairly different from identifying its intrinsic value. For this one, investors are required to gain greater knowledge so they can properly assess whether the collectable coins they have are assets or not. Some of the key factors they consider include:
- Aesthetic Features
- Grade or Overall Condition of Coin
- Historical Value
- Melt Value (this is based on the metal's worth)
- Mint Year
- Scarcity (or Rareness)
As you can see, recognising the actual value of coinage is not something you can see at first glance. It is rather a combination of knowledge in the industry and the origin of the coin itself. For this step, you need to get the advice and recommendations of experts so you can properly assess to properly educate you on things you should watch out for. Often times, coins do not cost much as you think they are.
If, by any chance, some British gold coins caught your attention, it is not advisable to buy it outright. Instead, thoroughly assess and inspect it. This is the only way guarantee you can do to see whether it is worth the deal or not.