Handling and Storage of Bullion Coins
Depending on whether the bullion coin is viewed as a treasured collectible item or just simply a bullion for its melt down value, the care in storing and handling of bullion coins differs considerably. On one hand, if the purpose of collecting bullion coin is simply for its intrinsic gold or silver value, then the condition of the coin doesn't matter whether it is dented or scratched, though of course a coin in good condition is easier to sell than one that is barely recognizable as a coin *grin*. However if your interest in collecting bullion coins lies only in its precious metal content, it would be better to acquiring coins that have little collectible value or low premiums such as the Krugerrand that have prices that are close to its base gold value, avoid coins that are extremely rare or have a high premium like the American Gold Eagle or certain series of Chinese Gold Pandas as you would be paying much more for the same gold content. Do not buy proof coins as well as they fetch much higher prices than ordinary bullion coin with their pristine condition as their collectible value.
In contrast if the bullion coin purchased is of significant collectible value, which means it fetch a price much higher than only its base content, scratches and dents would reduce their premium value. Therefore practicing proper care in handling and storing such bullion coins is akin to protecting your financial investment, preventing disappointment and serious financial losses while making your coin collecting experience much more rewarding in the long run.
Bullion coins are very sensitive items that do not withstand much handling, in fact it is better that they are not being touched or exposed to the environment at all. This is because bullion coins are generally made from gold or silver. Gold are very soft material that can exhibit scratch marks or dents from even the most minor bumps or mistakes, this especially applies to coins that have very high purity like the Canadian Gold Maple Leaf and the Chinese Gold Panda. Whereas silver can be easily discolored from even the most minor exposure of moisture in air or even from human skin. And if we are dealing with Proofs or Brilliant Uncirculated (BU) coins, a single tarnish, scratch mark or even thumb print could easily devalue the coin to less than half of its original value.
Then again, the act of being able to admire and touch the coin is what makes the experience of coin collecting much more enjoyable. To have the best of both world, I would buy a couple of Krugerrand and also the American Silver Eagle that have least collectible value, so we can have something to play with or tolling it around in our wallet with other coins to show off a bit *grin*. While at the same time keep our more precious collection in pristine condition. However by following a few guidelines, it is still possible to admire your more valuable coin collection while avoiding any mishaps that would result in disappointment:
- Hold your coin by its edges, never touch the surface of the coin with your bare fingers as the acidity of human skin would result in color change or wear marks that would tarnish the surface of the coin. Preferably, wear a soft cotton glove when handling bullion coins.
- Be very careful not to drop, bump or rub your coin against hard surfaces as this might easily result in dents or scratch marks, place foam or soft pads on the table when you are examining the coin to prevent the coin from scratches, ensure that the environment that the coin comes into contact with is dry, clean and free of contaminants.
- Never breath onto the coin surface, the moisture from human breaths can cause discoloration which would be hard to remove if ever possible at all.
Storage of Bullion Coins
Storage of coins are another aspect of protecting your coin portfolio, again it depends on the status of the coin as simply a bullion or collectible value, most many modern mints today offered coins in plastic wraps (with the occasional hard plastic containers) that serves as an excellent protection while being able to display the coins pleasingly. However one should take note that certain methods of storing normal coins cannot be applied to the higher valued bullion coins:
- Boxes, jars and containers: NEVER use this in any instances or only use it coins that have no collectible value, as any amount of precious coins stored under this condition, with all the bumps, collisions, and rubbings would soon render your collection worthless!!!
- Coin albums and flips:Great for displaying and storing the normal bullion coins but not for collectibles as they are not air tight, the coins might be susceptible to moisture damage and contaminants after longer periods. Do not use anything flips that is made of PVC as PVC reacts when in contact with heat and light, the resulting chemical reaction releases hydrochloric acid that will slowly corrode the coin (gasps!!!).
- Paper envelopes: Made of non acidic paper, this is also suitable only for temporary storages as the coins are susceptible to mechanical damages and exposed to the elements.
Some of the more suitable options in storing bullion coins include:
- 2x2 cardboard containers lined with Mylar plastics: the coin can be placed on the Mylar and the container can be fold over to enclose the coin and snapped shut. This provides a high level of protection at an affordable price for the majority of your coin collection. The cardboard containers can also be placed into plastic sheets that can hold about 20 coins (4 across by 5 down) and file into a 3-ring binder for display purposes. The cardboard containers should be replaced every 6 months.
- Air-Tites: This are round hard plastic containers made of acrylic, highly durable and scratch proof, it comes in various sizes that encapsulate the coin and can be snapped together to give an air tight fit, a black foam is often provided to suit different size of coins. I like this one as it allows me to play around with the coins without touching them. (Watch video below for some beautiful gold coin collection in Air Tites, includes the Australian Nuggets, The Chinese Gold Panda etc.)
Video Source: User SW640 , New York, United States - Coin Slab: Provides maximum protection for the most valuable of your coin collection as they are hermetically sealed hard plastic holders in which individual coins are encased. This however does not come cheap so only reserve it for the most valuable of your collection.
Safekeeping of Coin Collection
For collectors with large collection of bullion coins, the safekeeping of your collection would also comes into play as common sense dictates that storing large amount of gold and silver in your home makes you a very attractive target for theft and robbery!!! So the decision and arrangement of where and how to stock pile your coins helps to protects the things you hold dear and of course gives you peace of mind *grin*
- Hidden safe in your house: A small collection of your coins could be held close to you by installing a hidden safe in your house, say underneath a floor board etc… Nowadays buying a big safe off the shelf and keep it in your house may no longer be an option as there are cases where the owner is forced to open the safe during robbery. Additionally, it would also be a great idea to purchase insurance for the theft of your coins as a rider on your homeowner’s policy at a surprisingly low cost.
- Bank deposit vault: The majority of your collection should be kept at the bank deposit vault and if you have a large collection, you might consider spreading it out onto a few banks instead of only one.