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Coins as an investment - is it worth it? You must know that

2020-08-18T06:16:14.066Z


Times of crisis have an impact on investor behavior. Valuable coins are a popular investment. There are a few things to consider before investing.


Times of crisis have an impact on investor behavior. Valuable coins are a popular investment. There are a few things to consider before investing.

  • Coins as an investment do not generate any interest *.
  • Your investment is subject to price fluctuations and trends.
  • Keeping your coins safe costs money .

Bank interest rates are currently low. Therefore, many people who want to invest their money are looking for alternative investment opportunities - especially in times of existential crises and economic uncertainties. Shares currently seem too risky for many and real estate is so expensive that not everyone can afford such an investment. Then coins often come into focus.

If you want to invest money in coins, there are a few things to consider

Basically, unlike your assets in the bank, you will not receive any interest on your coins . Sometimes there are trend-related price fluctuations - and keeping coins safe, for example in a bank vault , costs additional money.

There are also a large number of different coins. Anyone who simply buys straight away or collects “wildly”, as it were, is extremely badly advised. Generating a return with such a collection is as good as impossible.

You should therefore proceed differently: Decide on certain metals, certain countries or individual series. And then specialize within that spectrum. The fundamental difference in coins is that between collector and investment coins .

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Collector coins and investment coins: return and increase in value

  • Collector coins appear in limited numbers on certain occasions . The rarer a coin is, the higher its collector value . Often these are silver-plated or gold-plated commemorative and special coins . At first glance, they give the impression that they are made of solid gold or silver. Don't let this fool you: it is not - the price of these coins often exceeds their actual value. Like the art market , the collector's coin market is also influenced by trends that can have a major impact on price.
  • Investment coins are mostly minted in large numbers and their value is almost exclusively determined by the value of the precious metal . But their value also fluctuates in some cases. An investment in investment coins is only recommended when the gold or silver price is low. With the recovery of precious metal prices, the value of the collection increases - and with it the return. Coins as an investment are only worthwhile if you are not dependent on the money in the long term. Therefore, you should be able to fall back on a sufficiently large amount of assets and invest a maximum of 10 percent of it in coins. 

Classic investment coins are:

  • Maple Leaf (Canada)
  • Britannia gold coin (Great Britain)
  • American Eagle and American Buffalo (USA)
  • Krugerrand (South Africa)

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Buying and selling coins and taxes

Coins offered to you should always be examined very carefully. It is best to only buy these through trustworthy coin dealers , such as the members of the professional association of German coin dealers. Otherwise, contact verified auction houses or reputable banks for a secure purchase .

Even as a beginner, do not buy small denominations of investment coins. Because here the additional costs are higher. In Germany, precious metal coins up to a limit of EUR 1,999.99 can be traded anonymously. If the volume of the transaction is higher, the buyer and seller must record the personal details of those involved in writing.

When it comes to taxes, special rules apply to coins : gold coins enjoy a special status. Profits from their sale remain tax-free if they have been owned by the seller for at least one year. If the coins are resold faster, profits of 600 euros or more must be taxed. According to the online guide Aktien.net, the individual tax rate of the seller is applied.

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Safe and proper storage of the coins

You have to store coins dry, with low humidity and dust-free - and because of their immense value they have to be particularly safe. There are separate albums, boxes or cases for this. If you want to store the valuables at home, you should definitely report your coin collection to your household insurance - as the MDR writes, you may have to insure the coins separately. And watch out for thieves : coin collections in particular are popular stolen goods . Either get a safe with a high security class - or maybe consider renting a safe from a bank . (cs) * Merkur.de is part of the nationwide Ippen-Digital editors network.

Read more: That's how much money Germans carry around in their wallets - would you have thought?

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Source: merkur

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