News from international auction houses is that buying and selling rare numismatics at auction has never been more popular. Interestingly, it is not just the volume of lots being hammered down; it is the number of serious bidders. The competition for these is an indicator of just how much money is chasing truly rare coins. For example, at a recent auction in the USA, where a collection of Early U.S. Dollars was on auction, more than three dozen bidders were in pursuit of a rare silver dollar, a 1798 Draped Bust Dollar Small Eagle. The number of bids the coin received, coupled with the $216,000 hammer price realised, is impressive. The previous auction record for the same coin was $129,250, achieved 11 years earlier. The competition for such a coin is an indicator of how many buyers are after collectable coins.

Setting price records is important, but the number of bidders and bids tells much more about the overall market. Auction activity is always a strong barometer by which the rare coin market can be measured. Bullion-impacted coins are in a similar mode to that of true rarities. A significant number of buyers are not coin collectors but clients looking to diversify their portfolios. With the spot price of gold continuing to hold in excess of $2,300 an ounce and silver holding relatively steady at about $27, people are looking for safe havens other than equities. And they are willing to compete to get these coins. Coin buyer's auction activities are a strong indicator of the hardiness of the rare coin market.

When considering buying gold coins, whether from a dealer or an auction house, several factors must be considered.

Dealer reputation

Look for dealers with an established track record. The South African Gold Coin Exchange (SAGCE) & The Scoin Shop are South Africa’s leading gold coin, silver coin, collectables and rare coin brokerage. Nine outlets in leading malls represent a national footprint and demonstrate The Scoin Shop as South Africa’s leading coin retail chain. An online shop, www.scoinshop.com, and a team of knowledgeable and experienced brokers back SAGCE & The Scoin Shop. Check if the dealer is accredited by organisations like The American Numismatic Association (ANA ), the Numismatic Guaranty Corporation (NGC) or The Jewellery Council Of South Africa ( JCSA ). The South African Gold Coin Exchange is a lifetime member of the ANA and a proud accredited member of the NGC and JCSA. This means we must follow strict ethical guidelines and meet certain standards.

Purity

Gold's purity is measured in karats, with 24-karat (or 24k) being the highest purity level. Investment-grade gold has a purity of 99.99%. Be sure to check the purity of any gold you intend to buy. Consult with our professional brokers. Our highly trained team can take you through a number of checks, ensuring peace of mind.

Weight

Gold bars and coins come in different sizes and weights, which affect their price. Gold coins typically weigh 1 troy ounce, 1/2 troy ounce, 1/4 troy ounce, or 1/10 troy ounce. Each coin is different. Our team of brokers can clarify all the intricacies and answer your questions.

Authenticity

To ensure you're buying authentic gold, look for hallmarks or stamps that indicate the manufacturer. Specifically for coins produced by established mints such as The Royal Mint, The Mint of Norway or The Monnaie de Paris. The South African Gold Coin Exchange & The Scoin Shop have exclusive relationships with a network of global mints, which means sole distribution rights in South Africa.

Buying gold coins can be rewarding, but it's essential to make an informed purchasing decision.