Historically speaking, rare U.S. gold coins have outperformed gold bullion coins by a factor that begins at 2:1 and ranges to 100:1. In fact, the rare gold coins with less bullion content have outperformed the rare gold coins with larger bullion content. As an example, $20 gold pieces are our heaviest gold coin (except for the extremely rare $50 Commemorative Gold Pieces) and $1 gold pieces are our smallest. Yet, since 1933 the $1 gold piece has greatly outperformed the $20 gold piece. Why? Many people saved the larger, heavier coins and relatively few saved the smaller denominations. Therefore, the smaller coins are rarer and in greater demand relative to supply.
In summary, rare gold coins have always been a superior medium to long-term investment than common gold bullion coins. They also have less downside risk because of collector demand. This long term trend is likely to continue as rare coins increase in prise according to the law of supply and demand.
Historically, the non-gold rare coins have outperformed rare U.S. gold pieces. For example, in the heated 1975-1980 Bull Market the #1 investment coin was a 3 cent nickel in proof 65 grade. It is increased in price nearly 1000% in 5 years.
Professionally speaking, the type of coin is infinitely more important than its metallic content. In each area (gold, silver, nickel, and copper coins) there are highly recommended coins which an expert can advise you on. You do yourself an injustice by investing all your money in one type of coin or another. You need a well diversified portfolio.
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NUMISMATIC GOLD VS. GOLD BULLION
The information below details the strong growth of a common date $20 Liberty Gold piece (nearly one ounce of pure gold), compared to one ounce of pure gold bullion like the Krugerrand, Canadian Maple Leaf, or the American Eagle.
Three specific items are listed: First is teh date, then the price of gold on that day, and lastly, the price of beautiful $20 Gold piece.
Specifically, this chart covers uncirculated (MS65) specimens and similar coins in other grades have various rates of appreciation.
As you can see, the Numismatic Gold coin performed admirably during the time when gold bullion corrected. Historically, high quality rare coins have on average, outperformed the gold and silver bullion market by several hundred percent.