Australian coins are not only a coin collector’s hobby but they can also be a wise means of investment, if done properly. Australian rare coins refer to those coins that were once in circulation as Australia’s currency. The British system of pounds, shillings, and pence were used up until the year 1966. The use of the British currency system stems from the fact that Australia was originally a colony of England.
These coins were made from gold, silver, and base metals. Later the decimal system was adopted and the Australian dollar was divided up into 100 cents much like the U.S. dollar is. Though withdrawn from public circulation these coins are still legal tender. These coins have become known as Pre-Decimal coins.
When one decides to invest money, one should choose an investment in an area that can provide good returns and minimal risks. From this aspect, rare Australian Coins can be a profitable and an intelligent option. This type of investment is a very different type of investing compared to investing in stocks in a stock market. Here are just a few of the benefits:
- As they are old currency coins, they have the advantage of being government approved.
- Rare coins can be more affordable. they can be bought singley or in bulk.
- Buying Australian rare coins can be done in private if necessary.
- When you invest in rare coins, you are not bound by unnecessary rules and regulations.
- When you purchase rare coins, they can be passed down to your heirs.
Establishing The Value of Australian Coins
All over the world Australian coins are much appreciated by collectors and investors. We next need to determine what factors are used to value these coin:
- Usually, the rarer the coin, the more that coin is worth.
- The face value is important.
- The type of metal the coin is made of is very important.
- The grade of the coin is one of the most important factors.
- The year the coin was minted can add value to it.
- The number of coins minted. Small mintage numbers often translate into rarity.
- The condition of the coin. Uncirculated coins are valued higher than well circulated ones
Rare numismatic investing is not risk free investing. If you want to invest with minimal risk, you will need to park your money in a bank account that pays zilch interest. Of course with negative interest rates being applied to bank accounts now, you are going to have to pay the bank for the privilege of having them handling your money. For more information on how to value Australian currency click this link for an informational article: http://tinyurl.com/zfpv9ha