When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
Buying Gold Coins: What Are Proof Coins And Are They Worth It?
Claudia Bravo
Diversifying your financial portfolio by investing in precious metals can protect your money against inflation. Most financial advisers recommend investing 10% to 30% of your assets in gold. Many investors are interested in investing in gold coins for not only the coin's bullion content, but also for its collectible value, as each gold coin is minted with a unique face that can be highly valuable to the right collector. There are different types of gold coins – in particular, proof coins and uncirculated coins. Proof coins tend to be more expensive. Here's why.
What Are Proof Coins?
Proof coins are special and stand out from uncirculated coins because they were minted to a different standard and using a different technique. Proof coins were struck two or more times by its coin die, and the coin die is treated differently than the die for uncirculated coins. This results in finer details that are non-existent on non-proof coins. The finished coins will have a cameo contrasting finish, which makes them more attractive. The production of gold proof coins is limited, which contributes to its rarity.
Are They Worth It?
Knowing the difference between proof coins and uncirculated coins, you may wonder whether investing in gold proof coins will be worth it. The answer to this question is simple. You must first determine whether you are more of an investor or a collector.
Gold proof coins are significantly more expensive than uncirculated gold coins even when the bullion content is the same. This is because more effort and time was put into minting these coins. As a result, you are paying more for the numismatic value, and not for the bullion value. If you are interested in gold proof coins from solely an investing point of view, opting for uncirculated gold coins instead may be a better choice. This is because the majority of what you are paying for when purchasing uncirculated gold coins is for their bullion value.
On the other hand, if you are more of a collector and don't mind holding onto your gold coins until the right buyer comes along, there is nothing more satisfying than having a complete set of gold proof coins. Keep in mind that each gold proof coin could be worth a lot to the right collector, and you could potentially cash in on the numismatic value. In short, you are banking on the fact that the gold proof coins will rise in price from a numismatic standpoint.
How Can You Protect Yourself When Buying Gold Proof Coins?
If you are a collector, you should still proactively protect yourself when buying gold proof coins to make sure you are getting a good deal. First of all, you want to make sure you are purchasing the gold coins from a reputable seller. Second of all, you want to only purchase highly graded gold proof coins. The standard grading rules apply. This means that the coins must be in mint condition, and must be protected from elemental and environmental conditions. Only purchase gold proof coins that come in their own protective boxes because the more people that handle the coin, the higher the likelihood that the coin will become worn down. Last of all, the bullion content should still be taken into consideration, as this is the coin's base value.
Conclusion
If you're willing to hold onto your gold proof coins for some time to find the right buyer, they can be a very profitable investment in the long run. There is no harm in investing a small portion of your assets in gold proof coins. Just make sure you have a secure and safe place to store the coins. For more information, see this page.
Share