Want to jump straight to the best collectible coins? American Gold Eagle, Platinum American Eagle, Canadian Palladium Maple Leaf and the 2021 $10 ¼-ounce Red-Tailed Hawk are some of the best collectible coins, available at Advantage Gold, Birch Gold Group and Red Rock Secured.
With high inflation and global uncertainty, more investors are piling funds into tangible assets like real estate and precious metals.
One subset of precious metals is collectible coins. Collectible coins can range from standard gold coins to ancient bronze tokens that are centuries old.
Below, you’ll learn about the fundamentals of coin collecting and four of the best collectible coins.
What is Coin Collecting?
Coin collecting can be categorized into two main categories, bullion and numismatic. Numismatic collectors look for unique coins that are rare and have historical value. Numismatic coin collectors might specialize in various sub-niches like ancient Roman coins.
Bullion investors seek coins made of precious metals like gold, silver, palladium or platinum. These investors are more interested in the underlying value of the precious metal, not just the coin's historical value.
However, both types of investors see these coins as long-term investments that can hedge against inflation.
Why Collect Coins Instead of Bullion?
The biggest advantage of being a numismatic coin collector is that vintage coins can be worth more than bullion coins. An ancient Roman coin that has some gold content but is extremely rare and in demand could be more valuable than a pure 1-ounce gold coin.
Unlike standard bullion coins, these rare coins can’t be reproduced, which can increase their value. On the flip side, they’re less liquid than standard bullion coins. As a result, vintage coins can be harder to trade, and their dealers aren’t as regulated.
For example, many standard precious metals brokers like the partners mentioned in this guide must register with the IRS because they offer self-directed IRAs. You can also use the U.S. Securities and Exchange Commission’s (SEC’s) database site to look up your potential precious metals dealer’s history.
What to Look for in the Best Collectible Coins
The three main factors to consider when looking for the best collectible coins include mintage number, coin grade and demand. The Guide Book of United States Coins is a good starting point when determining a coin’s mintage number and demand. Aside from this, dealers like the Chicago Gold gallery offer free appraisals.
Ensure that each potential coin is in good condition, meaning that it doesn’t have cracks, doubling or missing elements. These small details can have a huge impact on a coin’s valuation.
It might be tempting to clean your coins but doing this removes luster and patina, which decreases the value. Be sure to store the coins in mint condition to preserve the most value.
Best Collectible Coins
Many rare coins can have unexpectedly high values. The following list focuses more on bullion coins since this category offers greater liquidity and regulation.
American Gold Eagle
The American Gold Eagle coin is a 1-ounce coin that contains 22-karat gold. This coin is especially unique since it’s made with U.S.-sourced gold. It’s even more popular with investors since the U.S. government guarantees each coin’s weight, purity and gold content.
Platinum American Eagles
Platinum American Eagles (available at Birch Gold Group) are the official platinum bullion coin of the U.S. and have been in existence since 1997. Platinum is a lesser-known precious metal, but it’s still worth $1,043 per ounce, much more than silver’s spot price of $24.
Platinum is rarer than silver, and it has many uses that gold or silver can’t replicate. It is a component in catalytic car converters to convert harmful engine emissions into less-harmful substances.
Canadian Palladium Maple Leaf
The Canadian Palladium Maple Leaf (available at Birch Gold Group) is one of the few palladium coins backed by an official government. The Royal Canadian Mint (RCM) personally guarantees each coin’s purity and weight. Each 1-ounce coin is composed of 99.95% palladium, with traces of other metals like copper to ensure durability.
Like platinum, palladium is rarer than gold and has unique purposes like aircraft spark plugs and catalytic converters on automobiles.
2021 $10 ¼-ounce Red-Tailed Hawk
This newer gold coin (available at Red Rock Secured) is composed of 99.99% fine gold and features the late Queen Elizabeth II. Like the Canadian Palladium Maple Leaf, the RCM guarantees the quality of each coin.
These coins are especially valuable because of their limited supply, fine gold quality and connection to the reputation of the late queen. Because of this, these coins have been trading at higher valuations than their spot prices.
How to Buy the Best Collectible Coins
The best way to start buying collectible coins is through a trusted partner like Advantage Gold, Birch Gold Group or Red Rock Secured. You can call each company’s trading desk where associates will walk you through the buying and selling process.
Most reputable brokers insure the coins when they’re sent en route to your location. These partners also make it easy to set up a self-directed IRA, which you can learn more about below.
How to Buy the Best Collectible Coins With an IRA
With a self-directed IRA, you can invest in non-traditional assets like precious metals, real estate and collectible coins. Like a traditional IRA, you can select your self-directed IRA as tax-deferred or tax-free (Roth).
Fortunately, each partner in this guide can help you create a self-directed IRA in less than 30 minutes. Not all collectible coins qualify to be placed in an IRA. Brokers like Augusta Precious Metals publish a list that shows specific IRA-eligible coins.
How to Trade or Sell Your Collectible Coins
Most of these partners simplify the trading and selling process. Generally, you can trade each collectible coin for a product of a similar value.
You could also sell your coins back to the broker, which can save you time and money. Outside third parties like jewelers and cash-for-gold stores usually charge higher fees than these brokers.
If you want to trade or sell virtual coins (cryptocurrency), then check out Webull, eToro and Robinhood.
Are the Best Collectible Coins a Good Investment?
The best collectible coins can be a good investment, especially if you’re looking to diversify your portfolio from traditional assets. These coins can match or even beat the rate of inflation.
Rare, vintage coins can have much greater value compared to traditional gold or silver coins. However, these unique coins have minimal government oversight and can be illiquid. If you’re concerned about these factors, you can buy bullion coins through a reputable broker like Birch Gold Group.
Frequently Asked Questions
What is the best coin to start collecting?
The best coins for beginners are simple bullion coins like the American Gold Eagle or Canadian Maple Leaf brands. These coins are more liquid than vintage models and are guaranteed by the U.S. and Canadian governments, respectively.
What is the most valuable collectible coin?
The 1794 Flowing Hair Silver Dollar sold at auction for just over $10 million in 2013.
What is the rarest coin to collect?
One of the rarest coins in the world is the 1933 Saint-Gaudens Double Eagle, which holds the title for the most expensive coin ever sold at auction. Another highly coveted coin is the 1794 Flowing Hair Silver Dollar, considered to be the first official silver dollar minted by the United States. These coins, along with others such as the 1913 Liberty Head Nickel and the 1804 Silver Dollar, are considered rarities due to their limited mintage, historical significance, and exceptional condition.