5 mistakes to avoid when collecting coins

5 mistakes to avoid when collecting coins

It is important to keep in mind that while investing in gold, you should be aware that there are precautions to take.

  1. Do not clean your coins - A common mistake when people find or receive coins is to clean them in order to make them shiny. This is a huge mistake because as opposed to the coins we see in movies or cartoons, most gold coins are not supposed to be shiny. Their original colour and patina should not be altered by cleaning it. Keep in mind that the specialist you sell it to will probably use a specific product and has been doing so for so many years.
  2. Identify fake coinsIt is important to buy from reputable supplier. The reason is that there are some coins that are not originals strikes. In rare cases, coins are sometimes sealed and contain only a fraction of gold. Coins that are highly counterfeited are 20 Fr Vrenelis, 20 Fr Napoléon and 20 Dollars gold. The reason is that decades ago, the premium on those coins were really high and it was therefore very profitable for fraudsters to counterfeit and resell. A good idea would be to check reviews from Google or have a look at what people are saying on forums.
  3. Store it in a safe place – It is recommended that you keep your gold in a safe in the bank. Those are relatively inexpensive and highly secured. Alternatively, you could keep them at home although it is not as secured. It is also important to keep them in the plastic sleeves so that the coin does not get damage. Over time coins might change colour but it does not matter they will keep their value.
  4. Avoid touching coins – Some coins can be damaged very easily, especially pure gold coins (999,9) such as the Canadian Maple Leaf or the Australian Nugget. It is therefore recommended that you avoid touching them too often in order to avoid scratches.
  5. Don’t focus on a single type of coin – It is recommended that you do not focus on one coin only. The reason being that premiums vary according to supply and demand. Therefore, it is more important to buy a coin with low premium and sell with an high premium which is easier with a wider coins portfolio.

photo credit

unsplash-logo Tim Evans