Why Rare Gold Coins are Popular

Collecting old items is a popular hobby, be it statues, paintings or rare gold coins. Collectors don’t mind traveling long distances to obtain the desired rare items and expand their collection. Rare gold coins are among those collectibles that attract both collectors and investors alike.

Gold coins were initially used as legal currency. Since the introduction of paper currency, the use of gold coins as currency has diminished considerably. The value of gold almost doubled between 2005 and 2010. However, the value of rare gold coins is significantly more than the gold content of such coins.

The 1795 $5 half eagle was the first gold coin to be minted in the US and is highly sought after. Another example of an extremely valuable rare gold coin is the 1933 St. Gaudens $20 gold coin. These coins fetch astronomical amounts of money at auctions. In July 2002, a rare $20 Double Eagle fetched more than $7 million, creating history. However, it is not easy to get hold of such a coin, but many people like to own rare gold coins.

Mr. Louis Eliasberg, Sr. was known to have successfully collected every date, mint and denomination of the highest quality US coins. The value of his purchase from the 1920s till the 1950s was $400,000. In 1996-97, his collection was sold at a public auction for more than $44 million. This represents a 200% annual return.

Why ‘Rare Gold Coins’ are referred so?
In the numismatic industry, the word “rare” is not synonymous with scarce or unusual. In other words, the rarity of a coin is relative. A coin may fall under the category of rare coin even if there are over 100,000 specimens in existence. For instance, the 1909s VDB Lincoln Cent is a much sought after rare coin even though 484,000 specimens of it were minted.

A coin may be referred to as rare because it is not easily available, people don’t want to sell it, it is highly desired or its mintage was relatively low.

Mintage of Rare Gold Coins
For almost 100 years from 1838 to 1933, millions of gold coins were minted by the government for use in the US and international trading. The US Mint melted most of these coins and many of them were lost. It is estimated that nearly 5% of the original minted gold coins are still in existence and in demand by traders. Many rare gold coins have been hoarded by collectors to enhance their personal portfolio.

The Rare Gold Coins Industry
The rare coin industry is managed, tracked and regulated by the Federal Trade Commission. Rare gold coins are graded by Professional Coin Grading Service (PCGS) and Numismatic Guarantee Corporation (NGC). The cost of grading a coin ranges from $25.00 to $50.00. If you are considering buying rare gold coins from a dealer, ensure that the dealer is registered with either of these organizations.

It must be noted that gold coins were minted in many countries. However, the ones that were minted in the United States are the most famous and considered of high quality.