Ever since I was a kid, I have wanted to put together a collection of gold coins. Sadly, the budget hasn't been there...but I feel like I am getting to a point in my life where that is changing. I would like to start picking up gold. I have given it some thought about collection vs investment and honestly...I'm more interested in a collection. That said, I want to try and find something that can double dip in both categories. In my head...that means either foreign gold or modern commemorative US gold. I feel like this is a place where my affinity for German coins might benefit me. Prussian 20 Mark gold coins can be picked up pretty close to melt. They contain 0.2304oz of Gold and are .900 gold. The dream would be to do a date/MM set. Fortunately, there aren't that many key dates. The coin was minted from 1871-1915 and has 6 different designs. So, I think I know what set I would like to work on. In total, a complete set would be a little over 60 coins. My big question is how to avoid getting burned. I feel like initially, I can pick up a couple coins from American Gold Exchange or something like that. I don't want to do too many of these because they are random dates and I don't want duplicates. At my current budget, I can probably pick up 2 or 3 per year so duplicates would be an issue. Does anyone know of any good sources for these types of coins (other than places where you get random dates)? I don't need to pick up high end MS coins, lightly circulated examples are OK...so really I am looking to collect investment grade coins.
I collect German coinage and have had success buying on ma-shops. There are tons of German sellers on the platform that would probably have a nice selection. The issue is the exchange rate is not in the favor of the US dollar unfortunately and shipping can be costly. Also, try VCoins. I think many larger dealers might also have a less extensive inventory, especially if they deal mainly in bullion.
About ten years ago, I wanted to start a gold coin collection as well and had the same fears of getting burned. I educated myself as much as I could by reading and studying alot but to really learn you need the real deal to study, that thought brought me full circle. Do you acquire coins to study that they themselves may be fake? I finally came to the conclusion that If I collected gold coins from pocket change, there would be little chance of getting burned and so far, I haven't.
@CamaroDMD I had the exact same thought twenty -five years ago or so... I am finally at a place where I can acquire some gold. And I did exactly that. I will tell you this... It is more addictive than class one narcotics. I would post a photo of my banks deposit box but that would look a bit boastful...... I have gotten the bulk of my gold from non-typical sources. Seems that once I got the word out, gold found its way to me. I sourced gold coins from jewelry repairmen, abandoned storage house auctioneers, my own employees... Even my office copier repairman! Of course, these sources aren't where you can pinpoint specific examples, but I always bought at a great financial benefit to myself..... In all honesty, since the days of Covid, I haven't really seen much from these out of the norm sources, but I still keep the word out.
Then choose something different because Prussian 20 Mark gold isn't going to be it, unless you're counting on the spot price of gold steadily increasing and using that to meet the investment side of your goal. I say that because of your first comment. There's a reason they can be picked up close to melt, it's because the market considers them to be basically a bullion coin, and it always has. And in all likelihood always will. In other words a coin that doesn't have any numismatic value to speak of. Not really. High MS grades are the only ones that stand much of a chance of increasing in value. Low MS and circ examples are basically bullion coins. About the only possible exceptions are scarce and or rare examples. And as you said yourself, there aren't many if any. The same kind of thing is true of US gold coins. Even today, you can buy circ and low MS US gold in cleanly graded NGC and or PCGS slabs for a small premium over melt. Because they too are considered to be bullion coins. And that's with the US coin market and the world coin market both being strongly bullish at the present time. But it was still the same in bear markets too. In fact the world coin market, and particularly world gold coins that have numismatic value, have been steadily increasing in value for 20 years now - with no down turns. That's something that has never happened before in any coin market ! But I don't know how much longer it can last. The exceptions of course are bullion coins - they follow the spot price. Whether it goes up or down they do the same. Netherlands gold ducats for example, that I used to buy for $150 to $300, routinely sell for up to a $1000 today. And it's not just them, it's pretty much across the board. Now if you wish to buy for a collection's sake, buy because you like the coins and don't care about investment - take your pick ! Any and all will suffice.
When I first started gold I chose US Gold Coins. I looked at my Red Book at all of the choices and found that every series has one or 2 that are very high priced. If your just starting out that makes it difficult to complete a collection. After studying them for a little while I came to the conclusion that I would only be able complete one series. I chose that series as there are not many coins in it. I started collecting the $2.50 Gold Indians and after 3 years I had all of them except one, the 1911-D. I saved for about 6 months. I did without certain things, stopped others and put the money aside. One day I had the money and started shopping for that coin. There are 2 varieties and I went for the more expensive variety. It didn’t take long as I found a very nice 1911-D Strong D, which I bought. I now have and have had for a number of years a complete collection of this series. It was fairly easy to complete with the exception of the 1911-D. That date was a little tougher. There were plenty available but just not what I wanted and the cost is easily a 4 figure coin. The only coin I don’t have in this series is the 1911-D weak D. But I’m not a variety collector and I have the strong D so I’m good with that. Take your time to decide what’s right for you. After all, it’s your money and your collection. Here’s a sample of them. I think it’s a beautiful coin.
Very nice, and good advice. But I notice your coin is not slabbed. I prefer coins like that, but for someone just starting out collecting gold coins, buying raw is very risky. Unless you really know and trust your dealer, it is easy to get a counterfeit or altered coin.
I think I misspoke a little...because this is exactly my point. For the most part, these are consider bullion coins which is why I like them. But, I also like the history of this era of Germany so I have a personal interest in them. It gives me a chance to do a little gold investing while at the same time satisfying a historical collecting interest. I feel like I can double dip here. I can "collect" something that interests me at a bullion investment price point (outside of a few key dates such as 1875-B, 1877-C, and 1915-A). If I ever decide to liquidate, what I essentially have is stacked gold. What I want do is avoid coins with significant wear. I think a very nice collection of AU/low grade MS coins can be had for near bullion value.
Those are beautiful coins. The incuse design has always fascinated me. One thing I really like about the 20 Mark Prussian coins is it is really 6 different coins in the complete series. The coins 22.5mm in diameter and contain 0.2305oz of gold in .900 fineness. It was first minted in 1871 and the first design ran from 1871-1873. In total, there were 7 different business strike coins of the first design and really all but the 1871-A are common bullion gold. The first design features Kaiser Wilhelm I. The coin was redesigned for 1874 and the reverse was significantly changed. This coin was minted from 1874-1888 (none minted in 1880). The design ended due to the death of Wilhelm I in March of 1888. 1875-B (by far the rarest in 20 Mark), 1876-C, 1877-C, and 1878-C are key dates. However, 21 coins in total of this design were minted with most of the rest being common bullion. In 1888, a new coin was created featuring the bust of Wilhelm I's son. Wilhelm I was succeeded by Kaiser Frederich III who himself was terminally ill with cancer when he came to power. He would reign for only 99 days. As a result, only an 1888-A coin was minted with his likeness. Although common, it does tend to carry a small premium due to it being a one year only design and thus collected by type collectors. Frederick III was succeeded by his son Kaiser Wilhelm II in June of 1888. He would remain Kaiser until the fall of the German Empire in 1918. His first 20 Mark coin was only minted from 1888-1889 (both were only minted at the "A" Berlin mint). The 1888 has a lower mintage but neither has a ton of value above bullion. From 1890-1913, the following design featuring Wilhem II was minted. These are the most common 20 Mark coins found. 28 coins were minted in total and most are quite common and worth bullion. All "J" minted coins (1906, 1909, 1910, 1912) are a bit scare. The coin was also minted in Berlin every year from 1890-1913 and all are common. One final design was issued from 1913-1915 (3 coins in total, all Berlin minted), featuring Wilhelm II in his military uniform. This is my favorite design. The 1913-A and 1914-A coins are common, the 1915-A is a key date. Coinage of circulating gold in Germany ceased after 1915 due to the war and never returned.
