10 Worst Gold Coins for Investment

Increasing gold prices have a growing number of people interested in gold coin investing. Gold coins are a great way to invest in gold as they are fun to collect, easy to store and transport and can also be easily converted into currency.

Some gold coin investments are better than others, however, and some gold coin investments are no good at all. Investors interested in diversifying their portfolio by parking some of their hard-earned money in gold coins should know which coins to avoid to keep from ending upside down in their investments.

The following coins are best avoided by gold coin investors, as they frequently turn out to be bad investments.

National Mint Coins — Coin investors often mistakenly assume that these coins are associated with the U.S. Mint. They don’t. The National Mint is a private operation and does not have the endorsement or sanction of the U.S. Mint.

Morgan Dollars — These coins are often sold for up to $300 by television advertisements, but when taken to a coin dealer typically the most you can get for them is $40.

Fake gold coins — While some famous versions of fake gold coins may have some collectors value, 99 percent of all fake gold coins are worthless. To avoid buying fake gold coins do a little homework into the background of the dealer you’re buying your coins from.

Severely damaged gold coins — Collector’s value of gold coins is often based on condition, so avoid paying more than the gold metal value for a gold coin that’s severely damaged, no matter how old it is. Severe damage has a big negative impact on a coin’s resale value.

Gold plated gold coins — As these coins have very little gold content, they are worth very little on metal content alone. Few collectors are interested in gold-plated coins, also diminishing any potential value they may have as collectors items.

Replica coins — Coins minted as replicas of historic gold coins will have little value beyond the metal value of the coins.

Franklin Mint coins — These coins have little actual collectors value and are often a quick way to end up underwater on a gold coin investment.

Commemorative coins — Gold coins minted to commemorate various people or events often do not gain in value as the years go by. If you pay a high premium above the metal value of the gold, chances are that this will be a losing proposition for you.

Islamic gold coins — These gold coins have little official recognition, and thus are a risky gold coin investment.

Undocumented coins — If you want to ensure that your gold coins are authentic, insist on being provided with documentation when you purchase them. Undocumented coins can often turn out to be counterfeit or not even gold at all.

By avoiding these types of gold coins and sticking to legitimate investments such as gold eagles or Canadian maples, you’ll ensure that you get value for your investment dollar.