Should You Buy Pre-Owned or New Coins?
When you look to invest in precious metals such as gold and silver, purchasing coins can be a popular route. However, you do not necessarily have to buy brand new ones, as there is now a big market for pre-owned coins as well.
So, how to know whether to buy new or pre-owned coins? Which ones will give you more bang for your buck? Here, we look at the pros and cons of both to help you decide which coin investment is right for you.
Are old coins a good investment?
Buying pre-owed coins can prove to be a worthwhile investment if you choose the right ones. They can represent great value and can range from a few months old or even date back decades in some cases.
As they are pre-owned, you have the choice to buy individual coins or collections. Many new coins come with added premiums associated with the manufacturing and so they do not always offer the same level of value as their pre-owned counterparts.
As with anything that you buy second-hand, you may find that the pre-owned coins that you purchase are not always in mint condition, depending on how they have been kept and looked after. Whilst the value of the intrinsic gold or silver does not diminish, many people are buying coins for their rarity or design, so it is important to buy the best quality as you can.
Some merchants do offer a restoration service that helps to restore coins to their former glory, and whilst these might come with a higher price tag, they are likely to hold their value better when the time comes to sell them on.
Specialist coins have been released all around the world at various times and many of them have now become collectors’ items. Investing in one or several of these can prove to be a good investment, as they are likely to become scarcer over time, therefore pushing their value up.
Are new coins a good investment?
Just because pre-owned coins offer great value, it does not mean that new coins do not also have a draw. New coins can be a good choice for new investors who are just getting into the precious metals market, as it allows you to know exactly what you are buying and what its value should be.
It is important to remember that these new coins will also become collectors’ items in the future and so their long-term value will grow, not just because of the price of the raw materials but also because of what they represent and how few will ever be available on the market at any given time.
Are pre-owned coins worth less?
When we buy anything that has had a previous owner, we tend to assume that it is worth less than its newer versions, but this is not necessarily the case with coins. The value of gold and silver continues to rise, irrespective of what is happening to the world’s financial markets.
They tend to be somewhat immune to fluctuations in the economy and so they will always continue to grow in value. Depending on what you buy, you may find that it costs you less than a new coin initially, but this is often because it does not have the premiums that new coins require, and not that it is worth less.
Pros and cons of buying pre-owned coins
Pre-owned coins have a lot of advantages, but it is important that you know what you are looking for. The price of a pre-owned coin can often seem lower than buying a new one, but this might be due to the condition that it is in.
You need to make sure that you do your homework about how the coin looks and what the long-term impact on its value can be, as some wear and tear can have a bigger effect on the price than other issues. You should also be way of the fact that the older a coin is, the easier it can be to counterfeit.
You will need to take several measures to try and ensure that authenticity of a coin, such as only buying through a reputable dealer.
One of the great things about buying pre-owned coins the chance to find something really special or an item that completes a set or collection.
Whilst new coins will be mass produced to some degree, there are some really rare and unusual finds available on the pre-owned market just waiting to be unearthed. This can be worth a lot of money, and their value can continue to grow, making them a fantastic investment.
Pros and cons buying new coins
When buying brand new coins, you can be confident that you are buying something that is untouched and in absolute mint condition. As it is new onto the market, you have the option to buy it before the price inflates.
With modern technology, these coins are now harder than ever to counterfeit, so you can buy knowing that you are getting the genuine article. Buying a new coin is a long-term investment, as you do so in the hope that it will become a more valuable asset over time.
However, when new coins are released, there are likely to be a lot of them, so you will not own anything unique. For this reason, its resale value will not be affected by rarity for a very long time to come, as there is a risk of the market being flooded with them.
Buying coins can be a great way to invest in precious metals, especially for a precious metals IRA. There are many coins available on the pre-owned and new markets that represent excellent value and can be a great way to start a collection or add to it.
Whenever you invest in coins, make sure that you fully understand what it is that you are buying, and try to invest in the best quality that you are able to afford.