6 Dangers to Protect Your Coins From

Traditionally considered a sign of supremacy, beauty and peace, gold holds immense religious value especially in Indian culture and connotes great sacred meaning. Indians, in particular, are of the belief that buying gold would bring them good fortune.

However, with the changing times, the connotation and worth of the metal has undergone remarkable changes. People’s perception towards the precious yellow metal has taken a very different dimension. Now, gold is being considered a smart investment option.

As an investment option, it has gained notable acceptance all over the world in the last few years. As a result, it has become the most popular investment option among all the metals. While physical buying of gold continues to be the most popular form of gold investment, the investments going into gold exchange traded funds is also going up.

There are a number of investment vehicles for gold such as bars, coins, exchange traded products, certificates, accounts etc. The most traditional way of investing in gold is by buying bullion gold bars. Gold coins are also a common way of owning gold. Likewise, other vehicles equally are common investment options people opt for.

Today, investors have plenty of options available to them. Those who are interested in purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes offered by jewellers. Those who want to accumulate paper gold, choose exchange traded funds (ETFs) dedicated to gold or open-ended gold savings funds.

While many investors go for buying physical gold from local jewellers, experts are of the view that this perhaps may not be an efficient way to invest in gold. There are possibilities that jewellers may levy mark-up over the market prices. These apart, there are issues like purity and storage/safe-keeping. Quite a lot of experts recommend accumulating gold in electronic form also known as e-gold.

This means, one can buy gold through mutual funds. Mutual funds are well regulated and there are no issues of purity and storage. If an investor has broking and demat account, he/she can buy gold units through ETF route. If he/she does not have a demat account, investing through a gold savings fund offered by most fund houses would be a good step.

The true worth of the precious yellow metal is inescapable by the virtue of being one of the safest investment avenues available. As a matter of fact, even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in the world.

Despite the spiraling prices, the precious yellow metal has not lost its luster and hence several financial planners believe that investment in gold (physical or e-gold) is a smart decision by an individual to be taken and that it should be part of every investment portfolio. While the former offers greater psychological satisfaction to the investor, the latter provides better returns and is more tax-efficient. However, both options carry more or less the same risks and rewards.

Whether you collect coins for the intricate designs and historic value, or to invest in precious metals as a safeguard against fluctuating markets, protecting your collection from corrosion, blemishes, and wear is important for retaining a coin’s value.

One of the biggest mistakes coin collectors make when storing their gold and silver coins is to neglect the long-term safety of their investment by allowing their collection to be exposed to hazardous elements.

Consider these six dangers when storing your coins:

1. Humidity

Although water is used to clean and polish coins, it can also cause extensive damage-even water in the air. Humidity is the number one threat to your coin collection. The reason is that water vapor provides an atmosphere for rust, and other adverse chemical reactions, to wreak havoc on metal, so storing your collection in a dry, arid place is essential.

2. Temperature

Excessive heat can cause a coin to warp, depending on what type of metal the coin is made of. Even if heat doesn’t affect a coin immediately, it can lower the metal’s resistance to other environmental dangers like humidity, acids, and air pollution. A coin that is exposed to too much cold can suffer from condensation on its surface, which can cause water damage.

3. Acids

Over time, acids can tarnish or fade the luster of a coin. Acids generally are deposited on coins through paper or cardboard products that were manufactured with acidic chemicals. Cleaning supplies, adhesives, and even vapors emitted from cooking can also expose a coin to damaging acids.

4. Chlorine

Chlorine is a toxic chemical when ingested directly, and it is also dangerous to coins. Chlorine can cause corrosion or pits to form on the surface of the coin, as well as discoloration. Vapors emitted by pools, hot tubs, and even some plastics contain chlorine, so store your coins away from these dangers.

5. Air Pollution

Like water, air is another danger to coins that often gets overlooked. Just as air pollution is bad for your body, it is also harmful to coins. Smog and gases in the air can tarnish and dull a coin’s shine. Take steps to protect your collection from air pollution, especially if you live in an urban area.

6. Rough or Frequent Handling

The last danger to look out for when storing your coins is also the easiest to avoid. Touching and handling a coin deposits oils and acids from your skin that can erode a coin over time. No matter how clean your hands may be, limit the frequency and duration that you handle your coins. You can also hold a coin by its edges or wear plastic gloves for safe handling.

Safe Storage Techniques

To safely store your coin collection, and protect it from the six dangers, use a product specifically designed for coins. Coin flips, folders, and albums are effective ways to safeguard your coins from humidity, temperature, acids, chlorine, air pollution, and improper handling-and you will still be able to display your collection.

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