Many individuals are interested in the wealth protection offered by gold and other precious metals, but they may not know how to make a purchase or which products to include in their portfolio.
To help buyers make informed purchasing choices, U.S. Money Reserve, one of the nation’s largest private distributors of government-issued precious metals products, recently provided information on one precious metals option that may be of interest to buyers: certified coins. These can provide additional benefits not available with other precious metals products.
What Are Certified Coins?
Certified coins have undergone a careful process of evaluation by an independent grading service. One such service, Professional Coin Grading Service (PCGS), is known for easy-to-read labels that allow purchasers to identify important details of the coin they are considering.
These details include the coin’s year of issue, its legal-tender denomination, its condition and grade, its name, and its unique serial number and barcode. Together, this information can assist those comparing similarly graded coins and help shape a buying decision.
Protection with Certified Coins
Grading services can play a crucial role for buyers by offering assurance that their coins are authentic and in good condition.
If a coin is deemed counterfeit, contains physical or environmental damage, or is otherwise contaminated, the grading service may return it without certification.
The Difference Between Bullion and Certified Coins
Gold is an alternative asset that historically has not correlated strongly with stock and bond markets. This can help protect portfolios during times of economic downturn, when stocks and other securities drop in price. Gold has retained and even increased in price during past financial downturns.
However, not all coins are created equal—and certified coins vary from typical bullion coins in a number of ways.
Bullion coins—those unevaluated by professionals for condition or other key metrics—often follow the price of gold or other precious metals, essentially tying their price to the amount of precious metal they contain. In contrast, certified coin prices may be additionally tied to their certification and grade. Not only do these coins contain their stated precious metal content, but they may hold and even rise in price independent of the precious metals market. This can be a beneficial way to diversify within a precious metals portfolio and minimize risk over time.
Key Considerations When Buying Certified Coins
After deciding to move forward with a certified coin purchase, buyers may next consider factors that could impact a coin’s growth potential. The information presented on a certified coin’s label may be considered, as well as the general availability of similar coins.
The coin’s grade, in particular, is an important factor, as it indicates the quality and condition of the coin. Grades of 69 and 70 are given to coins at the highest condition possible, and coins with these grades are considered to be close to museum quality.
A coin’s mintage—the total number of that coin produced in a given year—and population—the number of coins certified as a particular grade—may also be considered.
About U.S. Money Reserve, America’s Gold Authority®
U.S. Money Reserve is one of the nation’s largest private distributors of government-issued gold, silver, platinum, and palladium products.
Founded in 2001, U.S. Money Reserve has grown into one of the world’s largest private distributors of U.S. and foreign government–issued gold, silver, platinum, and palladium legal-tender products. Hundreds of thousands of clients across the country rely on U.S. Money Reserve to diversify their assets with physical precious metals, primarily in the form of legal-tender gold and silver coins.
U.S. Money Reserve’s uniquely trained team includes coin research and numismatic professionals equipped with the market knowledge to find products for precious metals buyers at every level. U.S. Money Reserve goes above the industry standard to provide superior customer service, with the goal of establishing a long-term relationship with each and every one of its customers. U.S. Money Reserve is based in Austin, Texas. Like them on Facebook, connect on LinkedIn, and follow on Twitter.