Coins have been around since the time of Aristotle and have been obsessively collected since (at most recent) the ancient Roman Empire. You can still buy gold coins whether for a hobby or for a business opportunity. What should you know about coins and coin collecting before starting a portfolio?
First, carefully analyze your sources. In the beginning, your primary goal is to assemble a large quantity of above-average coins. You are not avoiding coins in circulation; you are merely avoiding worthless coins. You may be able to find coins in circulation that are worth something above face value. Use this as your starting “capital” so you can buy something worthwhile.
The most important factors that will determine a coin’s worth (meaning whether or not you buy these gold coins) are: the condition of the coin; the historical significance of the coin; the beauty or aesthetic value of the coin; the popularity of the coin; and rarity of its release. Having one of these qualities may be enough for you to sell a coin for much higher than its face value. Having all of these qualities is a sure sign of a keeper.
Try to remember as you buy gold coins that some pieces will appreciate in the short term and some in the long term. You have to study the market to determine which coins are likely to temporarily increase in price and then stall, from the coins that are destined to slowly appreciate in worth. There are also some coins that may actually fall below their face value, if they are extremely unpopular or excessively circulated.
Try to avoid gimmicky coins that don’t have a real market. Some coins, even old coins, have only limited value because they don’t have anything else besides age setting them apart from mass coinage. It’s not enough for a coin to be old—it must have historical value. It must also be in good, collectible condition.
When you buy gold coins, remember that anything could potentially be a collector’s item. It’s best to research the market, research the coin (what the dealer is saying about it) and then try to predict whether market interest will grow. Some coins are popular for odd reasons: some coins with minted mistakes are considered valuable. Coins identified with certain regions or even national regimes are considered collector’s items.
When in doubt, ask around the coin collecting community. You may have a collector’s item on your hands so never be too hasty when it comes to throwing coins away!