Investment coins are small bullion pieces made from precious metals (gold, silver, platinum) molded into the shape of small coins, serving as an alternative means of financial investment.
Since the value of these coins is directly tied to the price of the metal from which they are made, and can fluctuate several times a day, regular monitoring of precious metal prices can present opportunities to profit from the difference between buying and selling. These coins can only be purchased through banks or specialized organizations engaged in their acquisition and sale.
The design of investment coins is very straightforward, featuring the year of issue, denomination, amount of metal, and fineness. Both the obverse and reverse sides of the coin depict state symbols, coats of arms, mythological heroes, animals, or historical figures.
Types of investment coins
The weight and quality of the coins can vary, with products available in weights of 1 ounce (31.1 grams) or smaller denominations such as 1/10 ounce (7.9 grams).
Coins can be new or out of circulation, such as the imperial gold chervonets.
Additionally, there are coins of enhanced quality featuring a mirrored or inlaid surface. Such high-quality coins are often commemorative pieces dedicated to specific events.
How to distinguish a commemorative coin from an investment coin
Appearance: Commemorative coins have enhanced quality, whereas investment coins are of standard quality with simple designs and no complex elements.
Issuance: Investment coins are released in large quantities and hold less value for collectors, while the quantity of commemorative pieces is strictly limited. The fewer coins that are produced, the higher the demand and value.
Sale: The value of an investment coin corresponds to the market price of the metal from which it is made. Collectible value is only acquired if there is a flaw in the piece, if the mintage was small, or if the issuing country no longer exists. Conversely, commemorative coins maintain value for collectors due to their limited mintage.
How to profit from coins
Investing in coins is equivalent to purchasing bullion but differs in size and transport methods. To earn a profit, one must sell the coins for more than their purchasing price. This approach is suitable for long-term investment.
Greater profit can be derived from purchasing gold coins, as gold retains its appearance longer and its price tends to increase more significantly compared to other precious metals.
