Investments in precious metals are by far the most stable and promising. Along with other options for metal investments, coins play a special role. Collectors and numismatists know for sure that old collectible and precious metal coins bring a steady income to their owner, as they always grow in price.
There is a rationale for this. Over the past decade, financial markets have been shaking from crises. Deposits give income below the level of inflation, thereby not allowing you to receive income from investments, stock markets collapse now and then, which makes investing risky. At the same time, the value of coins during this time has grown almost five times. According to auction participants, the upward trend remains at the same pace, and the average annual price growth reaches 16-20%.
Services for the issuance and sale of investment coins are offered by many banks. You can also buy coins “with hands”, but there is a high probability of running into a fake. If the purchase of rare collectible coins requires certain skills and knowledge, then with bullion coins everything is much simpler. Their value is equated to the value of the metal from which they are made, while the price of collectible coins is made up of their significance and rarity.
These are coins made of high-grade precious metal, mainly gold and silver. Less common is platinum. Investment coins are issued by the Central Bank. They are acquired as an investment to preserve and increase assets. They are minted using simplified technology and in large quantities.
If commemorative coins have a certain fragment and are dedicated to some event, then precious coins have a simple pattern. They indicate the type of metal, weight, face value, sample. At the same time, the real price has nothing to do with the face value. So, a coin with a face value of 50 rubles. from gold will cost about 25-30 tr.
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The investment attractiveness of the coin is created by the absence of the value-added tax. According to statistics, gold coins are the most sought-after. Information on prices is available at the stands of banks selling coins, as well as on the official website of the Central Bank of the Russian Federation in the “Banknotes and coins” section.
Coins are sold in special capsules to protect them from damage during storage. Since the metal is of a high “soft” standard, mechanical impacts can cause damage, which in the future will reduce the cost of the coin due to low quality.
When buying, it is worth remembering that not all banks that sell coins buy them back. The difference between the purchase and sale prices is quite significant, so it is unprofitable to sell coins for a short period. Like all other gold, coins can only generate income in the long run.
Advantages and disadvantages of investment coins.
To start investing in coins, you need to weigh all the pros and cons of investing. The advantages include:
Stable growth in price in the long run.
The price is close to the value of the precious metal, which is growing in price.
There is no tax on the purchase.
If the coins are issued in a small circulation, then their value will be higher due to the value and rarity.
Requires careful storage. Even minor damage can reduce a coin to a satisfactory condition and reduce its value.
Storage is the responsibility of the owner.
You have to wait a few years to get income.
By buying “from the hands”, you can run into a fake.
Having a rare copy of the coin, it is more difficult to sell it, because you will need to find a real connoisseur who is ready to pay a decent amount for it. The bank will accept even a rare coin only by the weight of the metal.
Income can only be obtained in the long term (7-10 years).
Thus, it makes sense to buy investment coins to save and save capital. By ensuring it is properly stored, you can make good money in a few years. If you choose between gold bars and coins, then the latter will be more interesting for the investor in terms of the absence of VAT upon purchase.
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What metal to choose?
Standard coins are issued from silver and gold. If you choose for investment purposes, then gold will be more profitable. They are more expensive, the price of gold has less volatility than silver.
Silver is better to choose when buying commemorative or collectible coins, 80% of the cost of which does not depend on the metal. The value of silver is lower than that of gold, so it would take a lot of coins to create capital in coins, making them difficult to store. Gold coins are steadily rising in value and will always be in demand as gold is a rare and non-renewable metal.
Several factors affect the value of a coin:
Coin quality. If the owner of the coin has kept it in good quality, then it will be recognized as in excellent condition and redeemed at a good price. If the coin is damaged, then the condition will be considered satisfactory and the price will be underestimated.
Circulation of the coin. This is almost a fundamental factor in price formation. A large circulation means the prevalence of the coin and its low demand, i.e. the price will depend only on the weight of the metal. If the precious coin is also rare, then numismatists will want to get it in their collection and are ready to shell out a large amount.
Metal. The price of a coin will depend on what metal it is made of. Gold investment coins are made of 999 gold, so the price will be tied to the rate of the metal. The advantage for investors here is that the coin will not be worth less than the metal.
Rarity. A coin made of gold, but issued in a rare edition, will cost many times more than its common counterpart.
Time. The longer the coin is with its owner, the more expensive it will be. The price of the metal as a whole rises over 5 to 10 years, although there may be drops in short periods.
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Price for some coins:
Gold investment coin Ivan Kalita, weight 31.1 gr., 999 hallmarks 89264 r – sale price
85640 r. – buyback price
George the Victorious, 7.78 gr. 22700 r. – sale price
22400 r. – redemption price
FIFA World Cup 2018, 7.78 gr 22600 r. – sale price
21400 r. – redemption price
Golden chervonets Sower, 7.74 gr 22300 r. – sale price
21600 r. – redemption price
Where to buy coins?
The easiest and safest way is to buy through a bank. Here the coins are sold instead with certificates and an agreement in a special package. It is not recommended to buy coins by hand, according to private announcements. Even if the coin does not differ from the original in appearance, this does not guarantee its authenticity. Now there are ways of precise casting, which allows you to copy the coin the same.
Sberbank is the sales leader. You can also donate purchased coins here. It is worth remembering that there is a difference between the buying and selling price. Also, buyback prices differ by bank.
How to sell a coin?
The sale of the coin back is carried out only in the presence of a qualified specialist. He inspects the coin, completeness, and integrity of the package. You will need a passport to return the coin. After deciding on reacceptance, the bank generates documents. If the owner of the coin made a profit from its sale, then he is obliged to pay a 13% tax on it, because. the coin is considered property belonging to an individual.