Most people with an interest in collecting gold and rare coins hope for a coin portfolio that appreciates with time. To avoid losses and make money in any collectible, investors should plan with care and ask questions before investing. Investors should research the best coins to buy, then learn how to avoid losing money in rare coins.

A short history of rare U.S. gold and silver coins. According to the authors of “2012 North American Coins & Prices,” (2012) the market values of gold and silver varied in the early years of the country. For example, during the California Gold Rush, silver values temporarily exceeded that of gold on a supply vs. demand basis. Author Edgar Holmes Adams (“Private Gold Coinage of California: 1849-55, its history and its issues,” 1912) writes about the bonanza years that started in 1849. An octagonal $50 gold “slug” was used as currency. Ten, $20 and $25 gold pieces were stamped “CALIFORNIA” and reflect the plenitude of gold in the country during this exuberant time.

Prior to 1838, most Americans preferred to place gold coins in a vault rather than spend them for goods and services. In 1870, with the discovery of several Nevada silver mines, the price of gold declined in relation to gold once again. Continue reading →