Author Archives: Australian Gold Coin Collector
Why You Should Avoid Investing In Commemorative Coins
Commemorative coins have been issued by different companies as a way to advertise themselves. Most companies present these coins as a “one-of-a-kind” viable investments. They may be beautiful and themed after admirable individuals or some memorable historical event making them attractive to collectors, but when it comes to gold coins, looks can be deceiving.
Are commemorative coins really made of gold?
Just because commemorative gold coins are touted as gold coins doesn’t mean they are worth much. For one thing, most of these coins have more silver and other metals than gold. Gold is a powerfully persuasive word and companies selling such gold coins use it to influence consumer sentiment. Most commemorative coins are “gold plated,” meaning they have a thin layer of gold used to cover the surface, the rest of the coin could be anything from silver to copper. Overall, these coins won’t be worth much, if anything at all, when you decide to sell them
Anyone can make any claim about the product they want to promote. Just because you see something on television or hear about it on the radio doesn’t mean it’s legitimate. Advertising companies use clever words and skirt the truth when advertising commemorative coins. Just because a coin is a presidential commemorative coin doesn’t make it valuable. The fact that only a limited number of coins are struck also does not make them highly collectible.
To illustrate the point made above. In 2007, the US mint produced commemorative Reagan dollars. It was advertised then that there were only 1000 made. However, 1 million silver commemorative coins had already been made. This means a lot more people had the commemorative coin which would have caused the price of the coins to drop.
How much stock should we put on certificates of authenticity?
What about certificates of authenticity? Do they mean much or affect the price of the commemorative coins when you do resell? Not really. Some unscrupulous sellers will move general certificates among different coin sets. They may not be worth the paper they are written on.
Why should you choose numismatic gold coins
The alternative is to invest in genuine gold numismatic and rare coins. Unlike commemorative coins that are basically gold plated, rare or numismatic coins are valuable because they are made of pure gold. Investing in such coins means that you are investing in something that will appreciate in value. Gold and silver, unlike paper money appreciates in value during times of economic distress. Investing in fine gold numismatic coins can help protect against stock market failures, impending economic disasters caused by wars, severe inflation and national debt.
Commemorative coins may look attractive as display items, but as an investment they are as profitable as Pokémon cards. Commemorative coins also happen to be cheaper which should tell you of their true value. There are people who buy and sell commemorative coins as a hobby, but they cannot expect to get the same returns as people who invest in fine gold coins.
Sources:
- https://www.thesprucecrafts.com/modern-united-states-commemorative-coins-768817
- https://en.m.wikipedia.org/wiki/Presidential_$1_Coin_Program
Perth Unveils Its Most Expensive Coin This Year: The Discovery
The Perth Mint unveils its most expensive gold coin ever. On September 4th, 2018 Perth showed off its two kilograms or 4.4 lbs gold coin they call Discovery to the rest of the world. This Australian gold coin is a .999 quality gold coin encrusted with four pink diamonds that are worth more than $1.8 million. This coin was created to meet the demand by the ultra-rich for high-end, exclusive collectables. The Perth Mint is famous worldwide for creating high quality coins that end up becoming sought after coins amongst collectors. The coin shows off a ship a gold prospector and baobab trees and is considered legal tender. So far, it is the most valuable coin ever created by Perth mint or any Australian mint and will be sold to the highest bidder.
According to Perth mint, the coin depicts an inspirational rags to riches tale that is all too common in the gold industry in Australia. The coin is expected to be sold to Asian or Middle Eastern buyers. It’s no secret that Asians and Middle Eastern people are more inclined to acquiring the most expensive gold items as they hold gold in high regard. The most attractive aspect about the gold coin is of course the diamonds which are even more expensive because they are pink. The diamonds themselves were mined from the world renowned Argyle Mine located in a region known as the Kimberley region in the remote part of Western Australia.
The four diamonds could easily be an entire year’s production for the mine making this much more valuable and giving the coin a definite appreciation with time. Coloured diamonds are more expensive than clear diamonds, pink or red diamonds particularly are worth over 50 times more than white diamonds. Pink diamonds are found in special places, a handful of precious gems miners find Pink diamonds. Rio Tinto is known as the one mining company that mines most pink diamonds. The fact that the stones used in Discovery were discovered in a remote mine, not known for prolific diamond production. Rio Tonto itself holds a pink diamond sale every year that draws a lot of global attention. Most of the stones that go on sale fetch no less than $1 million carats.
Because of their rarity and the appreciation of gold, the coin is the best investment anyone can make.
“Discovery” is not the first expensive coin minted by the Perth Mint. Over the years, the Mint has produced some spectacular coins for discerning lovers of fine, luxury items. Some people buy gold bullion simply as an investment, others buy bullion coins to add to their collections whilst others will buy that one special coin no one is likely to ever have. These special, once in a lifetime coins are so rare and so expensive that the buyer’s names are kept a secret and the sale kept a secret. The “Discovery” coin was modelled from the “Holey Dollar” which has been the Degas or Monet of the coin collection world sold to a private collector for $AUD 495,000 in 2013. There might be more than one Holey Dollar out there, but the “Discovery” is a unique coin that will attract special investors.
Source:
- http://coinsblog.ws/2018/09
- https://investopress.com/australia-most-valuable-legal-tender-collector-coin
2018 Brings A New Silver Krugerrand
2018 has been a busy year for the gold market. Just when you thought mints have presented the best products they could another mint launches a surprise. The South African Mint came out with exciting news recently. Every gold bug and gold bullion collector should know the Krugerrand gold coin. The Krugerrand is steeped in tradition and has been regarded as a safer gold investment for half a century. These coins were and still are struck from the best and purest gold. Now, for the first time ever in the history of the South African mint, Rand Refineries and the Krugerrand this iconic coin is being issued as a low-premium silver coin.
The gold Krugerrand coins accounted for 90% of the global coin market in the 80s. There were other coins that did well like the American Eagle and the Canadian Maple leaf gold coins. But these have gone through some serious upheaval whilst the desirability and demand of the Krugerrand remained largely unshakable. The demand for this coin has not waned through the years. To mark the 50th anniversary of the Krugerrand in 2017, the Rand Refinery, the only refinery in the country that produces authentic Krugerrands, made the first ever silver Krugerrand designed to compete with the rest of the silver bullion coins in the world.
The Krugerrand is a sovereign-minted coin that is universally recognised and easy to liquidate. South Africa is not only one of the biggest gold producers in the world but the government backed mint, the Rand Refinery is one of the most reputable in the world. It has processed more than 50,000 tons of gold since its inception in 1920. The Rand Refinery cultivated a fine reputation in the world and is renowned for producing high-quality product. To commemorate 50 years of the Rand refinery’s production of the Krugerrand, the refinery has launched its first ever, 2 oz. silver Krugerrand
The 2018 Silver Krugerrand upholds the legend of the brand. Like its gold contemporaries, the Silver Krugerrand gives investors a way to own bullion for a fraction of the cost. The 2018 Silver Krugerrand was marketed as a low-premium collector’s coin. Investors aren’t just paying for the precious material, but they are investing in something that may be worth something. Because it is a Krugerrand, this silver coin is extremely liquid.
The Rand refinery had not produced silver bullion coins until now. The 2018 silver Krugerrand is the first government-backed silver coin struck by the Rand Refinery. Much like the gold Krugerrand, the silver Krugerrand coin gives investors a great and cheaper way to invest in low-premium bullion. The 2018 Krugerrand is priced slightly higher over the melt value. It is marketed at a premium that is on the same level as the Australian Kangaroo, the Canadian Silver Maple Leaf, the Britannia and the Austrian Philharmonic. This is definitely the coin to procure for serious coin collects and bullion investors alike. Silver has had a great run and more people are looking at the silver bullion market. The 2018 silver Krugerrand is the first of its kind and definitely worth every penny.
Sourced:
- https://www.moderncoinmart.com/info-vault/articles/2018-silver-krugerrand.html
- http://www.samint.co.za/2018-range/