Investments always carry risks. It is up to you to decide whether those risks are worth it or not. But that is not always an easy task, especially for investments like coins, where looks can be deceptive. For example, the gold coin you spent a lot of money procuring might not be as rare and valuable as the seller made it out to be. This is all the more true for commemorative coins. While their craftsmanship and historical value make them highly prized by collectors, they are not sound investments. Why? Take a look below:
Negligible Amount of Precious Metals Used
From a collector’s standpoint, commemorative coins might be a tremendous acquisition, but considering how little gold or silver goes into them, the cost of refining these gold- or silver-plated coins might actually be more than their worth.
Not Equal to Rare Coins
You will often come across ads that claim that only the last few pieces of a certain commemorative coin are left. However, what these ads fail to mention is that thousands of these coins have already been sold. When thousands of people own the same collectible, the value of the commemorative coin is bound to reduce drastically. So, do not be fooled into thinking that you have made a financially rewarding investment.
Authenticity Certificates Have No Merit
All gold and silver commemorative coins come with a Certificate of Authenticity. Unfortunately, any certificates not affixed to the coins are worth little more than pieces of paper. Whenever this happens, you can rest assured that the seller is trying to pass the collectible off as something valuable which it is not.
Commemorative coins add value to any coin collection, but as an investment, they are duds. So, rather than waste your time chasing after a ’lucrative’ deal on a gold commemorative coin, visit an actual coin store to know which coins would make a great investment. If you’re interested, contact us here.