Gold and silver bullion coins are an ideal choice for investors who want to add precious metals to their portfolio. Bullion coins are valued by the exact quantity of gold that they contain. Most bullion coins are produced with one ounce of pure gold and hence have the same value as one ounce of the precious metal. As the gold price fluctuates, so does the value of the coin. In most cases, smaller coins were minted later than larger ones, and have a lower value because their gold content is less than their larger counterparts. South Africa was the first country to strike a bullion coin in the form of the world-renowned Krugerrand, but many countries now mint their own bullion coins, such as Britain with its gold sovereigns.

Rare coins are different from bullion coins because their value is not determined by the metal from which they are created. Instead, they are valued according to their rarity and historic value. Numismatists who collect coins for entertainment value rather than profitability tend to prefer searching for rare coins instead of investing in relatively plain bullion coins. Though some rare coin collections are not worth much financially, others can be a profitable investment. There are many factors that affect the value of a rare coin, including its age, rarity and historic relevance.

Proof coins were designed to bridge the gap between bullion coins and rare coins. They also contain precious metal, which makes them valuable before even considering other factors. Proof coins are minted at a higher quality than bullion coins and far fewer of them are produced. Millions of bullion coins are minted every year, while proof coins are restricted to limited production. Proof coins are therefore valued higher than bullion coins – even though they both contain the same amount of gold – because there are fewer of them available.

Where to find valuable coins

Valuable coins can be found in a large variety of places. This is particularly true of rare coins, which are often bought and sold by individual owners. Rare coins are traded in such diverse places as antique stores and online auctions. If you are searching for rare coins, it is essential that you do your research and know the value of different coins, because they are often not accompanied by identifying certificates.

Bullion and proof coins on the other hand, are relatively easy to purchase. They are available both in physical and online stores. The Scoinshop, for example, is the retail branch of the South Africa Gold Coin Exchange (SAGCE) and offers a variety of bullion, proof and rare coins.

Choose The Scoinshop to start your coin collection

Whether you are looking to invest in coins for the financial reward, or want a more exciting and research-intensive experience, The Scoinshop offers you a wide range of gold and silver coins to add to your collection.

Peruse our selection of collectable coins, including Mandela, Cow Parade, Krugerrand, South African and UK coins. Visit The Scoinshop and start your coin collection today.

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