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gold price forecast
From an investment point of view, it is better to invest capital not in bullion or metal bills, but in monetary gold, since this will save the buyer from paying VAT when concluding a transaction. At the same time, it is more profitable to purchase investment (weight) coins, since they have good liquidity in the secondary market and availability. Gold investment coins, unlike collectible coins, are not too demanding in terms of storage conditions, knowledge of numismatics and connections among collectors. They are made from the highest quality metal and can be sold quickly and profitably due to the low spread between the selling and purchasing prices. However, despite the undemanding nature of specific knowledge, every investor should have a minimum understanding of which gold coins are more profitable to buy
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What kind of coins are these?
Their difference from other types of assets (collectibles and commemoratives) is their increased liquidity. That is why they are called investment - because for an investor, the ability to quickly exchange assets for money is the main reason for the purchase.
Compared to commemorative and collectible items, they have no intrinsic value (design, limited edition, historical or artistic significance). Accordingly, they can be bought cheaper, but you cannot get additional income.
Bullion coins are issued double-sided, like most others: they have an obverse (front side) and a reverse (back side).
How are they made?
Gold coins are usually minted from the highest standard of gold. Circulations may be different - under the order of the Central Bank or another large institution.
They differ in the level of mintage:
- UC (Uncirculated) – standard, medium quality, without complex patterns;
- Proof – highest quality, with a mirror surface; In coinage, a double blow with a plug is used.
The production itself is divided into several stages:
- Creation of a sketch by an artist upon special order.
- Making a cast from a sketch.
- The actual minting is made of gold.
The legislation allows placing orders for the minting of investment coins only to banks (or through their intermediary). This, on the one hand, limits the possibilities for the development of this market segment, and on the other, simplifies regulation in the field of operations with precious metals and the circulation of means of payment.
Investment funds: characteristics and types
Coins for investments are minted from precious metals that are of the highest standard. The main purpose of such money is investment. A certain circle of people interested in this method of investment purchase rubles and provide a deposit.
At the same time, the investment method is considered more profitable than investing in precious metals, since the value of money is still higher than the value of gold or silver. Thus, an investment coin is a certain category of money, minted using high-grade metals. The coins preferably have a gold or silver composition. Investment money is not included in circulation and is produced automatically. When minted, each unit must correspond to the following characteristic features:
- weight standard, which is inherent in analogues;
- thickness standard;
- uniformity of texture;
- simplicity of drawing in a simplified format;
- absence or invisible presence of small details in the design.
Is it profitable to invest in gold coins: the opinion of professionals
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
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When it comes to the material from which coins are made, gold will always be valuable. Hence, it is wise to purchase them as an investment. You can make a profit simply by increasing the market value of the precious metal, albeit over periods of 3-5 years.
Advantages and disadvantages
The advantages of this method include:
- Low cost, especially compared to gold bars.
- No special storage space required.
- You can hold them as long as you like and not be afraid that their value will burst like a soap bubble.
- Tangibility. Unlike compulsory medical insurance, for example, individually packaged roundels will not be lost if the bank goes bankrupt.
There are also some disadvantages:
- The buying and selling prices of banks vary greatly - this is how they receive their commission.
- Not suitable for short-term investment; you may end up at a loss.
- If the ownership period is less than 3 years, the income received is subject to personal income tax.
Coins or bars – which is better to invest in?
Definitely coins, and here's why.
The main differences between gold investment coins and bars:
- When purchased, bullion is subject to personal income tax (18%), but investment coins are not.
- Gold bars are much easier to damage, causing their value to drop significantly.
- Chervonets can be sold to any bank, while bullion, if not purchased at Sberbank, is difficult to sell to another bank.
But the ingots come in different weights. You won’t find such variety among coins, especially few kilogram coins.
Storage rules
To preserve the value of your coins made of precious metals, you must follow the storage rules:
- Do not touch the surface with your hands. The fingerprint remains and cannot be removed, especially on the mirror field of a banknote made using the “proof” technology.
- Do not open the transparent capsules in which coins are sold. This will help protect them from mechanical damage and fingerprints.
- Do not keep aggressive substances (household chemicals, medicines) near coins.
- The appearance of patina (tarnishing) over time is not regarded by the Central Bank as a defect and cannot affect the price. This is a natural process that, on the contrary, protects the metal from further oxidation.
- Do not use any cleaning products, especially for proof quality coins. For normal quality, you can use special napkins.
- Store in a protected place (bank deposit box, safe).
Are there differences between an investment and a collection?
The difference between these two methods is the end goal. The goal of a collector is to own rare specimens, the goal of an investor is to make a profit.
Expert opinion
Alexander Ivanovich
Private collector with 4500+ coins and bonds in his personal collection. Knows the value of each of them today.
If the investor is confident that the price is currently maximum, he will not hesitate to sell what he has. The collector will put them up for sale only if he needs money to buy more valuable specimens. In general, he strives never to sell. That is why representatives of this trend often have huge collections.
What metal should coins be made of?
The most common are gold and silver coins. In terms of investment, gold can provide great returns. Coins made from it are valued much higher, and the yellow metal is not subject to the same price fluctuations as silver.
It is more profitable to buy silver coins if they are collectible or commemorative items. Only 20% of their price forms the value of the precious metal itself. Silver is cheaper than gold and for significant savings you will need to store a lot of coins. Gold is a non-renewable and very rare precious metal, so coins made from it will always be in demand, and their value will only increase.
Kinds
Gold coins appeared long after the precious metal became a means of payment and proof of reliability and wealth. The most developed countries began to mint them. This emphasized their importance and had a positive effect on their image.
Royal
In Russia, gold coinage reached its apogee under Nicholas II. At that time, the empire was at the very peak of its economic development, and the country issued money of different denominations.
Many are still widely available today, so they can be classified as investment ones. Gold “Nikolai” are in stable demand on the market.
USSR
From the times of the Soviet Union, we still have a gold investment coin - “Sower” (the official name is “Chervonets”). It is not collectible or rare, but the demand for it is quite high.
Weight ¼ oz, 900 gold.
Modern Russia
Now our country can boast of a choice of several types of investment coins. The most famous is, of course, “St. George the Victorious.”
It has been minted since 2006 (the issuer is the Central Bank of the Russian Federation). Theoretically, it can serve as a means of payment - its denomination is 50 rubles, but it is unlikely that there will be anyone willing to pay with it in a store.
The front side depicts St. George the Victorious on horseback, slaying a serpent with a spear. Weight: ¼ ounce .999 gold.
There are also coins issued by the Central Bank as investment coins, but in limited editions for certain events. This fact indicates that they will become collectible in the foreseeable future.
The most famous of them are, firstly, the “Confederation Cup”, released for the said event in 2021. Since its circulation was only 15 thousand copies, it has every chance of being distributed among collections. Secondly, this is a copy released for the 2014 Sochi Olympics.
But the series in honor of FIFA, dedicated to the 2018 FIFA World Cup, is unlikely to become valuable, since its circulation is quite large.
Foreign
Capitalist countries, much earlier than our country, became concerned with the minting of gold investment coins. Therefore, many of them have their own samples, some in a rich assortment. Many foreign copies are also very successful among collectors.
I'll name the most popular ones.
Krugerrand South Africa
The Republic of South Africa was the first to issue this type of investment asset. This happened in 1967, and it was named “Krugerrand” in honor of President Kruger, whose portrait is depicted on the obverse. The reverse contains an image of an antelope. Sample 917.
It was with the release of this coin that the gold standard of 1 oz (1 troy ounce) was adopted. From now on, they tried to produce coins with exactly this weight, and they are called ounces.
The Krugerrand is the most common investment coin in the world, so its liquidity is very high.
American golden eagle
One of the two most popular bullion coins in the United States. On its obverse is the face of the Statue of Liberty, and the reverse is decorated with an eagle sitting in a nest with an olive branch in its beak. An eagle sits in a nest with eaglets.
Available in 1/10 oz, ¼ oz, ½ oz and 1 oz 916 fine weights, $50 denomination.
American Buffalo
The obverse contains the head of an Indian by sculptor Fraser. On the reverse is an image of an American buffalo - buffalo. Made from 1 oz sterling gold, valued at $50.
It went on public sale only in 2006.
Austrian Golden Philharmonic
A famous Austrian bullion coin, the obverse of which depicts the organ of the Vienna Philharmonic (hence its name). It was the first to be minted in European currency. Denomination – 100 euros, weight – 1 oz, 999 fineness.
Canadian maple leaf
A coin widely known in investment circles with the profile of Queen Elizabeth II on the obverse. The reverse features a maple leaf, the symbol of Canada. One ounce coin, 50 Canadian dollars, 999 fine.
Chinese panda
This panda has long spread far beyond China. It is recognized as one of the most successful bullion coins of the 1980s.
Its obverse depicts the greatest landmark of the Celestial Empire – the Temple of the Sun. The reverse is occupied by a giant panda, the symbol of China. The denomination is 500 yuan, the weight ranges from 1/20 oz to 1 kg of pure gold.
Its peculiarity is that the Chinese changed the design every year in order to maintain increased demand. Some types of “pandas” even began to be used in collections.
Australian kangaroo
Produced by Australia's oldest mint. The obverse features a portrait of Queen Elizabeth II. On the reverse is a kangaroo, the famous symbol of the Australian continent. Like the Chinese "pandas", the image of the kangaroo is new every year. Denomination 100 Australian dollars, weight 1 oz.
This gold coin is commonly referred to as a “nugget”, as the 2007 issue featured the inscription “THE AUSTRALIAN NUGGET”. The nickname is firmly attached to the coin, and all over the world it is known as such.
What you need to know to invest in gold coins
Experts say novice investors make the same basic mistake: simply go to the nearest bank that deals in bullion coins and buy the ones they have in stock. However, for successful investing, you must first study:
- List of organizations working with gold investment coins in the Russian Federation, compare their range and prices;
- The ability to order out-of-stock samples, as well as the presence of promotions and bonus prices for regular customers;
- For foreign samples – prices in different countries and delivery options; special attention to the countries where you are going to travel.
Now a little about the nuances of the investment process itself.
How to buy and sell
To carry out both operations - direct and reverse - you need a passport. In addition, if the purchase amount exceeds 600 thousand in ruble equivalent, the seller must transfer your data to Rosfinmonitoring. This is due to the law on combating corruption and financing of terrorism.
Please note that purchase and sale prices from different banks and other organizations that sell gold coins may vary significantly. Therefore, take the trouble to study all the offers available on the coin market before making a decision. A competent investor is always looking for how to buy at a minimum and sell at a maximum.
Attention! You shouldn’t take risks buying investment coins secondhand. Tempted by the relatively low price, it is easy to run into a fake and lose all the money invested.
What affects the price of a coin
There are two most important factors in the cost of gold investment coins:
- current gold rate;
- condition of the coin.
You need to monitor the course long before purchasing. Only in this way can the optimal moment for purchase be determined. And this should not be the peak of price growth. If the price is actively rushing up, this is another signal to hold off on buying. In addition, to invest in the Russian Federation, you also need to monitor the exchange rate of the US dollar to the ruble.
The condition of the coin largely depends on the conditions of its storage and handling. Take the time to read the instructions and follow them. Gold and products made from it should be kept in a dark and dry place. As a rule, investment coins offered for sale are individually packaged. It is better not to disturb it or remove the product from it. Any imprint on the surface can greatly reduce the cost.
By the way, the case of “St. George the Victorious” is widely known, when the entire edition was covered with rust spots. And this did not depend on the storage conditions - an impurity got into the alloy, which entailed such consequences.
Terms of profit
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
Ask a Question
There are no universal tips here. To obtain maximum profit, an investment must be placed in a timely manner. This means a period when the price of gold is at or near its minimum. Therefore, it is very important to constantly monitor the situation with the movement of the gold trend.
If the timing of entry is unsuccessful, the investor has to wait for years not only for profit, but at least for a return on the invested funds.
One thing is for sure - these are long-term investments. Keep in mind that they will pay for themselves over a period of 5 years; it is even better to keep them for 10-15 years.
How to buy coins correctly
Let's move on to practice. We decided on a coin. Next, we study the photo of the original in different qualities up to satisfactory, we find out the exact weight of the coin, what mint, circulation and how rare it is. We compare the prices of coins in different conditions at recent auctions and auctions that took place two or three years ago, or better yet, even earlier. We look at Molotok and look at the prices there. You can buy popular coins on the hammer, making sure that the seller's rating is high and the number of negative reviews does not exceed 1%. When purchasing rare coins worth more than 30 thousand rubles at Molotok, it is advisable to have an expert opinion on authenticity.
Let's see how the coin is traded. If there are bids, then this is good; it means that there is demand for this seller’s offer and the likelihood of counterfeiting is lower than that of analogues without noticeable demand. You should be careful if other sellers have excellent deals on the coin, but yours does not have a single bid. We set ourselves the bar to buy a coin at a price slightly below the average. It happens that purchasing a coin at paid auctions is more profitable than buying it at Hammer, plus a guarantee of authenticity. Also, at these auctions the price of the coin that is closest to the real one is formed. I recommend participating in several auctions, as there are increases in value. In this case, it is better to stop participating.
It is profitable to buy coins during a crisis. The population has no money, the lots can be sold at a very low price. Conversely, it is better to hold the coins and wait for an increase in demand.
Investment stages
An experienced investor never throws himself head first into the pool. Before investing in any asset, he will spend maximum time and effort studying it. Beginners should follow the same path. Ideally, the entire process is divided into several stages.
Setting goals
This refers to the personal goals of the owner of the capital. The construction of the entire strategy depends on them. The future investor must clearly understand how much he is willing to invest, whether he will purchase additional copies during the process, and what level of income he wants to receive as a result.
A correctly set goal should have a clear deadline and result. For example: save 500,000 rubles for children’s education by 2035.
Setting a Budget
Next, you should thoroughly calculate the budget that will be required to cover all costs. When developing a budget, it is optimal to take into account all scenarios for the development of events, including unprofitable ones. This will make it easier for investors to protect themselves financially.
Don't forget to add your sources of funds there if you plan to purchase additional coins in the future. For example, you are ready to invest 10,000 rubles every month.
Cost accounting
This is the main part of budget planning. Here you need to include all costs that are directly or indirectly related to gold coins. The main ones will look like this:
- The cost of the coins themselves per unit of time.
- Income tax if you have to sell the coin before 3 years of ownership.
- Storage cost if purchased coins will be stored outside the home.
- The difference in rates if there is a need to sell the coin in a month, three, six.
Coin selection
Unlike collectible coins, the choice of investment coins does not greatly affect the final income. Among them there are, of course, more popular and less popular ones, but an error at this point can neither greatly add nor significantly reduce the investor’s profit.
Advice: when intending to invest in foreign copies, first study the offers of foreign organizations. It may well turn out that the price abroad is significantly lower than in our country.
What coins should you buy today?
Today, the most popular coins on the list are 1 ounce (31.1 g) coins. Unfortunately, they are not produced in Russia, since the Central Bank believes that they will have difficulties with sales due to the fairly high price. However, sales statistics indicate the opposite. So investors have to be content with foreign-made ounce coins.
It is better to give preference to those that may become rare over time. For example, “St. George the Victorious” has not been minted for two years, although there is a demand for it. This method, of course, is not a panacea for forecasting income, but at least it gives a chance to increase profits in the future.
Advice: it is better to purchase investment coins of the highest standard (999). Products made from 900 gold are often of poorer quality; over time, defects appear on their surface.
Regular monitoring
I have already mentioned the importance of tracking gold prices. It would also be useful to watch the news, especially important international events that can affect the dynamics of the exchange rates of major currencies.
Monitoring the exchange rate of the ruble against the US dollar is also important. Since all payments in Russia are carried out in rubles, this has a significant effect on the price of gold coins.
Buyer's choice
This choice must be approached very scrupulously, since prices from different buyers can differ dramatically. Therefore, it is better to follow a simple algorithm:
- Make a list of all organizations that buy gold coins.
- Find out their purchase prices for investment coins for the current date.
- Select the optimal buyer based on price (taking into account travel costs).
It also doesn’t hurt to clarify whether they will take the entire collection at once if you are going to sell for a large amount. It may turn out that the organization needs to be notified in advance so that there is money in the cash register to complete the transaction.
If you prefer to sell coins to an individual, do not forget to document the transaction.
Grade
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
Ask a Question
Grading as such does not apply to gold bullion coins. The price usually consists of the gold rate plus a purchase commission. But if the sample is minted in the Proof category or has become rare over time, an assessment may be appropriate.
General information
Even within the framework of this blog, I have already written quite a lot about investment options. Today I want to focus on the topic of investing in precious coins. This method is not so common, since it is more conservative, but it also has its significant advantages.
Let me remind you of the important rules of investing:
- We invest only our own funds, no loans from friends, credits, and even less applications to microfinance organizations. Only your own free funds.
- The money you invest should not be your last, set aside for an important business or purchase, or vitally necessary. You must understand that if you lose them now, you will be able to live in peace without compromising your quality of life.
- There is no guarantee that your investment will be profitable. Even if you invest in stable and reliable government bonds or bank deposits, there is no guarantee that this will actually be the case.
- Before investing your own money in a particular instrument, you should carefully study it and evaluate the possible risks and potential profitability. As a rule, risks are proportional to projected income. The higher the profitability, the greater the risks. But there are exceptions to this rule.
- In order to make a decision on investing money in a particular financial instrument, it is important to evaluate it according to the following key characteristics - possible risks, projected profitability, payback periods, minimum investment amount, advantages and disadvantages of investing for yourself.
- The available amount for investment must be distributed over several different instruments, that is, risks must be diversified. Investing your entire capital in one instrument is a rather risky step, which can lead to the loss of everything at once, especially if you have chosen a rather risky instrument with a high return.
Where can you buy or sell
Transactions with gold coins for individuals can be carried out not only by banks, but also by organizations that have permission for the relevant type of activity, as well as individuals. Among them:
- pawnshops;
- organizations involved in the circulation of gold coins;
- collectors, numismatists.
There is a lot of choice, so the main advice is: measure seven times - cut once. Try to make the maximum profit from the sale.
Price comparison table
To make the task easier for the investor, I will provide a table with prices for the most popular coins:
How much do investment gold coins cost in Sberbank of Russia today?
Prices for investment coins are quoted, that is, they change along with the gold rate. To have an idea of changes in their value, there is a special section on the Sberbank website.
