Expert: Joe Hylas - 10/24/2004

Question
hi, i'm about to become a new coin collector. i'm 25 years of age and the reason i will be investing in gold coins/other coins is because i believe that there will be a lot of inflation in recent years, which i would like to protect myself from.

i guess that i'm not sure whether i should invest in modern-age gold coins (maple leafs, pandas, philharmonics, etc.) or collectible coins (of which i know nothing about). i'm also not sure if i should just invest in gold coins; which gold coins i should invest in (i prefer foreign coins to american, though); and which dealer to go to.

if you could just reccommend a good way to invest the $60K, i would appreciate it. since i do not wish to take up much of your time, please do not feel obligated to write long explanations. simply a short list of desirable items would suffice, and i would really appreciate it.

the coins i will invest in will probably never be sold by myself and will be left for my children and their children - i'm not looking to make a quick buck, just preservation of wealth for the long-term.

thank you,

demetri


p.s. i read that the imf is selling off some of its gold reserves and that this could have an impact on gold prices. i see gold going down to $395 before the end of the year for this reason and other reasons. do you agree?

Answer
Hello Demetri,
You are correct in realizing the devestating effects inflation has on paper money, and the role hard assets play in hedging against inflation.
Gold maintains it's buying power relative to inflation, that's why people, banks and countries own it.
First off, with oil over $50 per barrel, and the world facing wars and economic hardships, I see a bright future for precious metals.
Now, for how to invest $60,000...
What I recommend to anyone who knows little about rare coins is to avoid them until you learn more and find a dealer whom you trust.  If I were your dealer, I would like to see you assemble a set of PCGS or NGC certified $2.50 Indian head gold coins.  It is a short series, 15 coins, and it has performed very well over the years.  Another approach to take is to purchase the "Key" date coins in each series and ignore the lesser coins.
But for now, I would say that you should buy Krugerrands.  Krugerrands are the cheapest of all the gold coins and they are widely available and recognized.
If you want to buy them for me, please call me at 800-474-6960
Regards,
Joe Hylas
Omega Precious Metals