Making a First Coin Investment

After a long decade of economic uncertainty, people are finally starting to realize that there are other options besides relying on fiat currency.  Many have lost faith in banking institutions, and it has become clear that the dollar just doesn’t have the purchasing power that it once did.  With a rising cost of living and a devalued dollar, it is no wonder people are looking for alternative ways to store their savings.  Rare precious metal coins are one of the investment vehicles that is growing fastest.

The main reason why so many people are interested in tangible investment options, rather than stocks for example, is because they will retain their value, even if the worst should happen.  In the event of a complete and utter economic meltdown, people can still be confident that their wealth will be preserved.  Paper simply does not offer that kind of guarantee.  A piece of paper is really only a certificate that represents an item of actual worth.  Gold is the real currency in this situation.

Understanding why precious metals are such a safe investment involves first realizing where they get their value.  Of course, everyone knows that gold and silver are rare and that they are aesthetically pleasing, but is that enough to secure them as a reliable store of value?  The answer is both yes and no.  People will always pay for precious metals because they are a limited resource that simply represents wealth and power.  There will always be people who will pay to own collectables and jewelry made from these substances.  However, there is much more to it than that.

Gold, silver, platinum, and palladium all have a myriad of uses besides aesthetics.  They are actually incredible versatile industrial metals, and often they are an irreplaceable component in various fields.  For example, astronauts use gold in their helmets because it can be hammered so thin that it becomes transparent, yet it still offers significant protection.  Another example is silver.  Virtually every computer and cell phone on the planet contains trace amounts of silver.  There is no doubt that the demand for these metals will continue to rise to meet growing industrial needs on a global scale.

For investors, the best way to purchase precious metals is either in bar or coin form.  It may seem appealing to buy a ring, necklace, vase, or other item, but the reality is that these items cost much more than their precious metals content, due to artisan fees and seller premiums.  The best way to get the lowest price possible is to buy from reputable dealers who will only charge slightly more than the current spot price.

Some people prefer to buy a rare gold coin rather than a bullion coin because it offers more potential.  However, rare coins also come with more risk.  The initial investment costs are higher, but the rewards later are usually the same.  It is important to keep in mind that each and every rare coin is completely unique, so a good deal of research should go into a coin before buying it.

The most crucial piece of advice any coin investor should heed is to go through a reliable dealer.  When it comes to precious metals and rare coins, if something seems too good to be true, it likely is.  There are more than enough buyers out there for any dealer to get the price they deserve, so discount or bargain coins are extremely rare.  If you do business with a dealer who is known in the numismatic community, you will inevitably have better results.  Most people find that making a first coin investment is not difficult with the help of a seasoned expert.

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