Investment Coins: Your Strategy for Capital Preservation in Precious Metals

The World of Investment Coins: A Reliable Investment in Precious Metals

Investment coins, crafted from high-purity precious metals, serve as an important tool for investing and preserving funds. Their primary purpose is to become part of a financial portfolio, ensuring capital stability.

In Russia, the Central Bank is responsible for issuing such coins. These items feature a simplified manufacturing technology, and their quality meets the uncirculated (UNC) standard.

Key Differences Between Investment and Commemorative Coins

Unlike commemorative coins, investment specimens do not require the development of a unique reverse design. Moreover, minor production defects are permissible during their minting.

Investment items are typically issued in large quantities, which deprives them of numismatic value. Their cost always remains close to the current price of the metal itself.

However, there are also common features with commemorative coins. The following information must be indicated on investment items:

• Metal purity and type
• Year of issue
• Weight of pure metal
• Face value

It is important to understand that the face value of an investment coin has nothing in common with its actual market price. The latter is determined solely by the weight of the pure precious metal and its current market rate.

Tax Advantages and Investor Choices

One of the most attractive features of investment coins is that transactions with them are not subject to value-added tax. This very circumstance makes them such a profitable investment tool.

Among Russian investors, gold-minted items are the most popular.

Where to Buy and How Quotes Are Tracked

Most issues of investment coins are sold through Sberbank, but they can also be purchased from other credit organizations in the country.

The quotes for gold and silver investment coins are not constant. They change throughout the trading day on the precious metals and currency exchange.

The Central Bank of Russia daily updates the selling prices for investment coins, publishing them on its official website in the special section 'Banknotes and Coins'.

As an example of price dynamics, consider the 'Saint George the Victorious' gold investment coin:

These data show that by January 9, 2018, the price of the 'Saint George the Victorious' coin had increased by over 48 percent compared to its value in 2013. Its face value remains 50 rubles, and the weight of pure gold is 7.78 grams.

This is the price, based on the value of the metal, paid by Sberbank and other resellers, who then set a slightly higher cost for the end consumer.

Acquisition Process and Tips for Investors

To purchase an investment coin, you must present your passport. If you plan to buy a specific gold coin, it is recommended to check its availability in the chosen credit institution in advance.

Some credit institutions, including Sberbank, also buy back coins. However, experts emphasize that investment coins are most profitable for long-term investments.

Short-term operations with them may be unprofitable due to the significant difference between the purchase and sale prices (spread).

All investment products are packaged in special transparent plastic capsules. These capsules are designed to protect coins from any damage and contamination, preserving their original appearance.

The Legendary 'Saint George the Victorious'

One of Russia's most recognizable investment coins is the 'Saint George the Victorious'. It is minted in both gold with a face value of 50 rubles and silver with a face value of 3 rubles.

Investment gold coins, including Russian specimens, are always available for purchase on specialized markets.