Whether you already have part of your portfolio in precious metals or you’re looking to diversify, you might wonder: Are coins a good investment?
The short answer is yes, provided you do your research and choose wisely. Coins are both tangible assets and portfolio diversifiers, and many investors find that they create a sense of security during economically turbulent times.
In this article, we’ll explore the benefits and possible drawbacks of investing in gold and silver coins. We’ll also take a look at some of the best coins to invest in.
Why People Invest in Coins
Some people engage in coin collecting as a hobby. For others, buying coins is more about investment. These are some of the most common reasons people choose to invest in coins:
They’re a Hedge Against Inflation and Economic Uncertainty
During periods of inflation, the purchasing power of the dollar decreases. However, precious metals tend to hold their value during times of economic uncertainty and inflation. Sometimes, they even increase in value.
That’s partially due to the fact that the supply of gold and silver, unlike the supply of paper money, is finite. The scarcity of gold, silver, and other precious metals means that they generally don’t experience sudden drops in value.
They’re a Tangible Way to Store Wealth
When you invest in U.S. coins or bullion coins, you get a physical store of wealth that you can hold. You don’t have to depend on a bank or other financial institution to access your investment.
Gold and Silver Have Historically Retained Value
Even seemingly safe investments on the stock market can suddenly plummet in value. However, for centuries, gold and silver have remained valuable. While they aren’t ideal for short-term investors looking to turn a quick profit, gold and silver investments are time-tested ways to preserve wealth and purchasing power over time.
Their Worth Extends Beyond Intrinsic Metal Value
When people invest in gold or silver bars, they’re not making purchases based on artistic value or historical interest. When people invest in coins, they’re often interested in more than just adding gold or silver to their portfolio.
Rare coins are often worth more than the value of their metal alone. Some serious coin collectors see their coins as an investment, and others simply purchase them for their value as collectibles.
Are Gold Coins a Good Investment?
Because gold is both stable and globally recognized, gold coins are generally a good investment. This holds true whether you’re purchasing coins based on historical value or the value of their metal content alone. These are a few examples of gold coins trusted by coin investors worldwide:
- American Gold Eagle
- South African Krugerrand
- Austrian Gold Philharmonic
- Canadian Gold Maple Leaf
- British Gold Britannia
Buying gold coins can be a valuable strategy for diversification or wealth preservation. However, as with any other investment strategy, it has both benefits and drawbacks.
Advantages
These are some of the key benefits of investing in gold coins:
- They typically appreciate over time
- They’re a traditional safe-haven asset
- Because gold is a popular investment, liquidity is relatively high
If you do invest in gold, it should be as part of a diversified investment portfolio. A financial advisor can offer guidance on how much of your portfolio should be in gold and how much should be in other assets.
Considerations
No investment is universally positive. Before you start shopping the rare coin market or investing in bullion coins, consider these potential downsides:
- You pay a premium over the spot price (the value of the metal itself)
- Gold investments often experience short-term volatility
- You may need to pay for storage, insurance, or both
For many, the benefits of investing in gold outweigh the potential disadvantages. An advisor can help you decide whether investing in gold coins is right for you.
Are Silver Coins a Good Investment?
Silver coins are one of the most common alternative investments to gold, and many coin investors put money into both. These are some of the key advantages and disadvantages to consider before investing in silver.
Advantages
Silver is often seen as being second-best, but there are several reasons to consider it as an investment:
- It has a lower entry cost than gold, so it’s more accessible to beginners
- There is consistent, high demand for it in both industry and investment markets
- Because of its dual role as an industrial/precious metal, silver has unique growth potential
Many of the gold coins popular with investors have silver counterparts. You might choose to invest in the American Silver Eagle, Canadian Silver Maple Leaf, Austrian Silver Philharmonic, or British Silver Britannia.
Considerations
Before you jump into silver investment, take a moment to consider some of the potential drawbacks:
- Silver generally tends to be more volatile than gold
- Because it’s less valuable per ounce than gold, you’ll need more storage space
- Just as with gold coins, you generally pay a premium over the spot price
No coin investment is perfect. However, if you choose to invest in both silver and gold coins, you may be able to make your portfolio more stable through diversification.
Best Coins to Invest In
If you’ve decided to invest in gold or silver coins, you might already be trying to identify the best coins to purchase first. Navigating the market as a beginner can be intimidating, but it may be helpful to start with a list of some of the best coins to invest in:
1. 1854 Kellogg $20 Coin
The 1854 Kellogg $20 Coin might not be as famous as the American Gold Eagle or Canadian Gold Maple Leaf, but it’s a coin steeped in history. During the California Gold Rush of the 1840s and 1850s, the United States Mint was having trouble keeping up with the demand for coins.
Several local banks asked John G. Kellogg, who had recently opened a gold melting and assaying office with G.F. Richter, if he would consider releasing a private gold coin to help with the shortage. The first Kellogg $20 gold coins were released in February 1854.
2. American Gold Eagle Coin
The American Gold Eagle Coin is the official U.S. bullion coin. Because it’s globally recognized, you may find that your investments in American Gold Eagle coins are more liquid than those in some other types of coins.
American Gold Eagles come in four separate denominations: $5, $10, $25, and $50. There are also two separate versions of each denomination: a proof version and a bullion version.
The proof version is meant for collectors, and the bullion version is typically purchased by investors. Although each Gold Eagle has a face value, the intrinsic value of its metal content far exceeds the coin’s denomination. For example, a one-ounce Gold Eagle’s face value is $50, but in 2025, its intrinsic value on the precious metals market is close to $4,000.
3. Canadian Gold Maple Leaf
Most gold coins contain a certain amount of silver, copper, and other metals for strength and stability. The Canadian Gold Maple Leaf is unusually pure: it is 99.9999% pure gold.
Its purity makes it a valuable investment, but if you want to preserve its artistic appeal, make sure you handle it with care. Pure gold is substantially weaker than gold alloys, so these coins can easily develop dents and blemishes.
4. American Silver Eagle Coin
American Silver Eagle Coins are the most popular type of silver bullion, and they’re backed by the United States government. Unlike many other coins on the list, they come in only one denomination. Silver Eagles contain one troy ounce of silver, and their face value is $1. However, on the precious metals market in 2025, their intrinsic value would be close to $50.
5. 1 oz Highland Mint Silver Round
The 1 oz Highland Mint Silver Round is a coin from a private mint. It has no face value as currency, but it’s a practical way to invest in physical silver.
Additionally, some of these coins have a high collectible value. Most coins have a design that rises slightly above the surface of the coin. A subset of Highland Mint silver rounds has “incused” stamps that appear sunken into the coin’s surface. The rare incused-stamp versions command a higher price in the collectors’ market.
How to Approach Coin Investing
Coins are unique alternative assets. However, because coin investing is so different from most other kinds of investment, you should do your research and make sure you know what you’re getting into before you start.
These are a few tips to keep in mind as you begin your investment journey:
Balance Bullion and Numismatic Coins
When you’re creating any investment portfolio, it’s a good idea to strike a balance between stable investments with modest growth potential and riskier investments that come with the possibility of higher returns. That’s why any coin investor should include some bullion coins and some numismatic coins.
Bullion coins are those whose worth is determined by the market value of the base metal. Numismatic coins are collectible coins whose value is determined by several factors:
- Age
- Rarity
- Condition
- Historical significance
- Artistic design
- Collector demand
Determining the value of bullion coins is relatively straightforward. It can be harder to determine the value of numismatic coins, but these collectibles could potentially result in much greater returns.
It can take some time to gain an understanding of different collectible coins and their values. That’s why most people who invest in numismatic coins are interested in them as collectibles — not just investment vehicles.
Buy From Reputable Dealers
Unfortunately, not all coin dealers are honest. Before buying any numismatic coin, verify that it has been certified by a recognized coin grading company. These are the most reputable:
- Professional Coin Grading Service (PCGS)
- Numismatic Guaranty Co. (NGC)
You should also do your due diligence when it comes to researching dealers. Before buying, look into a company to see how long it’s been in business. It’s also worth checking its Better Business Bureau (BBB) profile to see if it has a large number of customer complaints.
Diversify Across Metals and Denominations
When you invest in the stock market, you don’t just select one stock you think is the best and pour all of your investment capital into it. Investing in coins works similarly. There’s nothing wrong with investing more in some specific coins, but including multiple denominations and metal types is critical for building a stable portfolio.
Keep a Long-Term Mindset
It may be tempting to invest in gold or silver coins and then obsessively watch the values of both metals. However, doing so is a recipe for anxiety and dissatisfaction.
Some investments are ideal for generating short-term profits, but silver and gold bullion and numismatic coins are not. You may see some fluctuation in short-term values, but gold and silver are two metals that tend to be stable over time.
Ready to Start Investing in Coins?
If you’re looking for an investment that doubles as a hobby, adding bullion and numismatic coins to your portfolio might be the right choice.
However, if you haven’t invested in coins before, it can be difficult to know exactly how to get started. The team at Noble Gold Investments is here to help you succeed. Download our gold and silver investment guide and contact us to schedule a complimentary gold investing strategy session.
Alternatively, if you’re ready to diversify your portfolio with precious metals, open an account with us today!
