Building Your Gold Coin Portfolio
There are significant differences between collecting and building a gold coin portfolio to use as an investment. Simply having rare gold coins isn't enough. There has to be a demand for your collection to drive the selling prices. Other key pieces of information that are important to know include:
- Rating - Gold coins have a valued determined by the mintage and population. It is important to have your pieces appraised and know the professional grading of each. This rating will be a number between 1 and 70 based on expert opinions of the quality of your coin.
- Price History - Knowing how much your coin has sold for in the past can help you determine price trends for the future. A coin that is not now or has never been desirable, most likely won't become a hot seller in the future. Patience in this market is gold, and history has shown that the big money payoff comes to those who invest over the long term.
- The Story - A gold coin with a compelling past or an interesting story of heritage will always sell faster and at a premium compared to those without.
- Significance - Coin collecting in the last 50 years has become as much a fad as an important investment option. Stay away from unproven trends and gold coins without a history. Never invest in any rare coin which is not at least fifty years old because without an established track record future appreciation becomes unpredictable.
The Building Blocks of a Solid Investment
1/3 Inexpensive Gold
The philosophy is simple. Gold isn’t cheap, particularly at today’s market prices. For an easy return, you should own some inexpensive gold. I prefer Swiss or French Gold 20 Francs. Each weighs 0.1867 troy oz. and they normally sell per oz. for about the same price as a one ounce Gold American Eagle or Gold Canadian Maple Leaf.
1/3 Semi-Numismatic Gold Coins
The next third should be in Semi-Numismatic gold coins. These range in price from $1800-$2500 per ounce. Semi-Numismatic offer the most Gold and/or Silver content for your money, which under current law provides privacy from government reporting as well as full protection from confiscation. It is my way of hedging the second third of your portfolio.
1/3 Rare Coins
The final third of your portfolio should consist of rare gold coins. A "Condition Census" is a roster of the finest known examples of a specific variety; you want to focus on coins in the finest 10 to 200 known. These offer string potential to both collectors and investors alike; this is where the most profit has been generated over the last 5-10 years. The prices can range from $3000-$350,000 each.
Sample Portfolio $23,500
- 1. Gold 20 Franc (20 coins)
- 2. Early Date $25 Gold American Eagle (10 coins)
- 3. Type II Liberty $20’s (2 coins)
Approximate Gold Weight: 11 troy ounces
Avg. Price Per Ounce: $2136
TOTAL: $23,500
Sample Portfolio $46,750
- 1. Gold 20 Francs (50 coins)
- 2. Early Date $25 Gold American Eagles (20 coins)
- 3. Semi Rare Type II Liberty $20’s (2 coins)
Approximate Gold Weight: 22 troy ounces
Avg. Price Per Ounce: $2125
TOTAL: $46,750
Sample Portfolio $91,250
- 1. Gold 20 Franc (50 coins)
- 2. Early Date $25 Gold American Eagle (20 coins)
- 3. Better Date $25 Gold American Eagle (10 coins)
- 4. Type II Liberty $20’s (7 coins)
- 5. Better Date Type II’s (3 coins)
Approximate Gold Weight: 45 troy ounces
Avg. Price Per Ounce: $2027
TOTAL: $91,250
Larger Gold Coin Portfolio Investment Strategies
Regarding gold portfolios of $100,000 and more, we start to talk more seriously about set building. In hot gold markets, sets are known to command 10% - 30% premiums over the individual gold pieces. There are many more people capable of picking up gold pieces in the $10 - $20,000 range than there are coins to feed that demand.
Portfolio Proposal: $250,000
- 1. A $1000 Bag of 90% Silver
- 2. Circulated Peace Dollars (500 coins)
- 3. Circulated Morgan Dollars (500 coins)
- 4. Peace Dollars, graded MS-64 (50 coins)
- 5. Morgan Dollars, graded MS-64 (50 coins)
- 6. Peace Dollars, graded MS-65 (50 coins)
- 7. Morgan Dollars, graded MS-65 (50 coins)
- 8. A set of Texas Commemoratives*, dated 1934-1938 and graded MS-66
- 9. Type I Liberty $20's, dated 1850-1866 (10 coins)
- 10. Type II Liberty $20's, dated 1866-1876 (10 coins)
- 11. Assorted St. Gaudens $20's, dated 1908-1928 (20 coins)
- 12. Gold American Eagles, business strike and dated 2010 (10 sets of coins)
- 13. $25 Gold Eagles, dated 1986-2011 and graded MS-69 (2 sets of coins)
* - visit Texas Commemorative for more info.
Portfolio Proposal: $500,000
- 1. A $1000 Bag of 90% Silver
- 2. Circulated Peace Dollars (500 coins)
- 3. Circulated Morgan Dollars (500 coins)
- 4. Peace Dollars, graded MS-64 (50 coins)
- 5. Morgan Dollars, graded MS-64 (50 coins)
- 6. Peace Dollars, graded MS-65 (50 coins)
- 7. Morgan Dollars, graded MS-65 (50 coins)
- 8. Peace Dollars, graded MS-66 (25 coins)
- 9. Morgan Dollars, graded MS-66 (25 coins)
- 10. A set of Texas Commemoratives*, dated 1934-1938 and graded MS-66
- 11. Type I Liberty $20's, dated 1850-1866 (10 coins)
- 12. Type II Liberty $20's, dated 1866-1876 (10 coins)
- 13. Classic Key Date/Major Rarities (3-5 coins)
- 14. Assorted St. Gaudens $20's, dated 1908-1928
- 15. Silver Eagle Proof Sets, dated 1986-2008, 2010-2011 (2 sets of coins)
- 16. Silver Eagle Business Strike Sets, dated 1986-2011 (2 sets of coins)
- 17. Platnium Eagle Proof Sets, dated 2010 (2 sets of coins)
- 18. Platnium Eagle Business Strike Sets, dated 2010 (2 sets of coins)
- 19. $25 Gold Eagles, dated 1986-2011 and graded MS-65 or higher (2 sets of coins)
- 20. Palladium Maple Leafs, weighing 1 troy ounce (20 coins)
- 21. Assorted Gold and Silver Type Coins, ranging from half-cents to half-dollars
* - visit Texas Commemorative for more info.
Portfolio Proposal: $1,000,000
- 1. Two $1000 Bags of 90% Silver
- 2. Circulated Peace Dollars (2000 coins)
- 3. Circulated Morgan Dollars (2000 coins)
- 4. Peace Dollars, graded MS-64 (100 coins)
- 5. Morgan Dollars, graded MS-64 (100 coins)
- 6. Peace Dollars, graded MS-65 (100 coins)
- 7. Morgan Dollars, graded MS-65 (100 coins)
- 8. Peace Dollars, graded MS-66 (50 coins)
- 9. Morgan Dollars, graded MS-66 (50 coins)
- 10. Two sets of Texas Commemoratives*, dated 1934-1938 and graded MS-66
- 11. Type I Liberty $20's, dated 1850-1866 (20 coins)
- 12. Type II Liberty $20's, dated 1866-1876 (20 coins)
- 13. Classic Key Date/Major Rarities - 3 CN Shield Liberty Nickle Set, graded MS-65 or better.
- 14. Assorted St. Gaudens $20's, dated 1908-1928 (40 coins)
- 15. A complete, 144 piece Silver Commemorative set, featuring dates from 1892-1953
- 16. Silver Eagle Proof Sets, dated 1986-2008, 2010-2011 (4 sets of coins)
- 17. Silver Eagle Business Strike Sets, dated 1986-2011 (4 sets of coins)
- 18. Gold American Eagle Business Strike Sets, dated 2010 (10 sets of coins)
- 19. Platinum American Eagle Proof Sets, dated 2010 (4 sets of coins)
- 20. Platinum American Eagle Business Strike Sets, dated 2010 (4 sets of coins)
- 21. $25 Gold Eagles, dated 1986-2011 and graded MS-69 (4 sets of coins)
- 22. Palladium Maple Leafs, weighing 1 troy ounce (40 coins)
- 23. Assorted Gold and Silver Type Coins, ranging from half-cents to half-dollars
* - visit Texas Commemorative for more info.
Prices are subject to change... in fact we count on it.
