How Risky is Gold Coin Investing In the Overall Scale of Risky Investments?

Financial gurus advise people not to put all their eggs in one basket when building up their investment portfolios but to diversify their investments. In these uncertain financial times where stock markets continue to be volatile, it can be hard to know which investments are safe and which should be considered as too risky to be involved in.

Many people choose to invest their savings in gold and other precious metal coins because they offer a tangible investment, but in the overall scale of risky investments – how risky is coin investing?

Adding coins to an investment portfolio offers you a tangible proven asset

Gold Bullion Coins: Risky or Not?

The most popular gold bullion coins in circulation are the American Eagle and the Canadian Maple Leaf because they boast having a high gold purity. Millions of coins are sold each and every week and typically boast having a ninety percent and sometimes higher gold content.

For a long now, gold bullion coins have been considered as being a safe investment and continue to be so especially in these troubled financial times. Gold coins are proving to be a popular and lower risk choice of investment simply because the demand remains great which means prices are still booming in these challenging financial times.

However, just because gold is seen to hold its value, it can still be volatile and is not suitable for anyone who is looking for a quick return on their investment. The rule of thumb is to hold onto gold bullion coins for at least three years before even thinking about selling them.

The real risk when it comes to investing in gold coins is whether by doing so, you would get a better return than you would on an alternative option.

Some gold bullion coins carry less risk than others

What about Rare Collectible Coins?

When it comes to rare collectible coins, investors don’t see these as their first choice due to the fact they don’t often offer much of a return and as such, they are considered as being a riskier investment. Most investors and collectors of rare gold coins seldom make a profit on them unless they are ready to wait a very long time to do so which could mean sitting on a collection for decades.

The other reason why rare coins are not thought of as good investments is that you would need to do an in-depth study of any coins that may be of interest to you. For a novice investor, this could present quite a problem because it can take years to build up the necessary expertise needed to recognize the value of a rare coin.

On top of this, not knowing or being able to recognize a fake gold coin could end up being a very costly mistake and sadly, there are many counterfeit or altered coins around some of which even boast mint marks. These are added to the fake coins to give them the appearance of being valuable and therefore sought after items.


According to Best Gold IRA Rollover guide when developing an investment portfolio, people are told to diversify their investments with some which are low risk and others a little riskier. It would be fair to say that putting your money in rare collectible coins could be considered as risky because they just don’t deliver the same returns as gold bullion coins which are thought of as a safe bet.

However, gold bullion coins have to be seen as a longer-term investment and not a quick profit deal. When it does come time to sell them on, you would have to contact a reputable dealer and know the value of your coins so you get the sort of price you were looking for. In the overall scale of risky investments, gold bullion coins are a pretty safe bet but rare collectible ones are not.