Investing in precious metal coins can prove to be lucrative if you know what you are doing. It is not without its risks, but investing in physical metal coinage provides a sense of security that other investments lack, as well as lending the unique characteristics of the different metals to your investment portfolio. Coins will also, by definition, have a value associated with them that makes them legal tender and if they lack this quality, they are merely called “rounds.” If you are looking to invest in coins, here are five to consider that are worth investing in for their own reasons.
The Silver Eagle is a classic collector’s item when it comes to precious metal coins: the United States Mint produces these silver coins and stamps the year on them, making them a cheaper alternative to collecting other precious metal coins. This goes for precious metal investment as well, since bullion silver eagles are a more affordable option for investors with less capital to work with. An experienced precious metal trader may also find that there are some practical reasons to buy silver over gold, so knowing what patterns to look for in the prices of gold and silver can end up paying off.
Few metals are as famously sought after than gold, and since the Golden Eagle coin is minted with 22 karat gold it would be hard to argue that its price isn’t justified. Whether or not it is a good investment at the current time is up for debate, if only because the price of gold is likely higher than it has ever been when you compare it to silver. It is possible that the price of gold could keep on climbing in light of the coronavirus pandemic and you could still make some money, but regardless of if the price of 2020 gold eagles goes up or down the price of entry into this investment opportunity is at a record high.
Platinum is another famous precious metal, but perhaps for a slightly different reason: it just makes for a really good coin. Platinum is the least reactive metal on the periodic table, and the international standard that defined a system of measurement used to be made of a Platinum-Iridium alloy. It also has industrial uses that drive its price and it is cheaper now than it has been in the past, making it a decent investment possibility.
Palladium is a lesser-known metal when it comes to investment, but it is still quite valuable. It is used in cars as well as having a role in the reduction of carbon emissions, making it more valuable as more environmentally-conscious legislation gets passed. Still, palladium appears to be a high-risk-high-reward investment that will reward the bold investor.
The United States Mint actually mints two kinds of gold coins. The chief difference between the two is that the Golden Buffalo is minted in 24 karat gold, making it a slightly costlier investment over the 22 karat gold of the Golden Eagle. It is only offered as a 1-ounce coin, however, making it the go-to coin for if you want to heavily invest in gold.
Investing in coins is rather practical when compared to other kinds of investments, since those coins will always have a value to someone no matter what happens. Regardless of which kind of metal you invest in, putting time into knowing why you are investing in that particular metal is its own investment. Even the best-planned investment strategies can fail unexpectedly, but if you have a diversified portfolio that includes various kinds of bullion coins, you stand a decent chance of making money.