Many savvy investors have turned to coin collecting as a way to enhance and diversify their portfolios. Coins represent an excellent option for adding precious metals to a portfolio, not only because it is easy to track their value over time, but also because that value tends to fluctuate less than other investments like stocks or commodities. While many coin collectors focus on rare or commemorative coins, they overlook an excellent investment opportunity: common date gold coins.
An Overview of Common Date Coins
Sometimes also called “generic gold,” common date coins were produced in large quantities for multiple years. Thus, they are widely available in a variety of mintage years. High-quality common date coins are also available slabbed, with certificates of quality and authenticity from independent grading services, like the Numismatic Guaranty Service (NGS) or Professional Coin Grading Service (PCGS). Because no specific mintage year is rare, common date coins are traded based on coin type, rather than the date they were produced. Common date American coins include the following:
- $20, $10, $5, $3, and $2.50 Liberty coins
- $10, $5, $3, and $2.50 Indian coins
- $1 Types I, II, and III coins
Several countries worldwide also have common date gold coins, which offer comparable value and remain equally popular to their American counterparts:
- Austrian/Hungarian Coronas
- French Roosters
- Netherlanden Willem III Guilders
- British Sovereigns
Investment Benefits of Common Date Coins
Although common date coins may not be as flashy or interesting as commemoratives, common dates frequently offer a much more reliable investment option than other kinds of coins. While these “generic gold” coins might seem rather ordinary, that is actually part of the reason that they make outstanding investments. Common date coins occupy a unique place in the precious metals and coin market, due to several favorable features that make them strong investments:
- Low premium: There is significantly less mark-up over the bullion price on common date coins, since they are not rare or difficult to attain. Therefore investors spend their money on the gold, rather than the coin’s popularity among collectors. Unaffected by scarcity, prices of common date coins tend to remain steady and reasonable.
- High liquidity: Because common date coins are less specific, the market for them tends to remain steady. Common date coins also enjoy a broader market, since their appeal is not limited to a narrow group of collectors. This factor makes them relatively easy to sell.
- Consistent appreciation: Although the gold market fluctuates like any other, the price of gold tends to appreciate steadily, even through dips in the market. While the value growth in gold may be less dramatic than that of a popular stock, the price tends to remain more consistent, making gold a safer investment.
- Flexible purchasing quantities: New investors can start with the purchase of a few coins. However, common date coins are also often available in bulk, for more seasoned investors who have more experience investing in gold.
- Finite supply: Although common date coins are easy to obtain, they exist in only limited numbers. No more will be minted. Furthermore, as they age, many of these coins will lose some numismatic value. Thus, those coins in excellent condition will be even more sought after, which will increase their value.
Navigating the complicated workings of investment options and portfolio diversification can be daunting and overwhelming. However, investment in precious metals, particularly through common date coins, is an excellent entry point for novice investors.
This information is provided for general reference purposes and does not constitute professional advice. For detailed coin collecting or investing information, please consult with a professional expert.