For some people, acquiring rare gold coins can be a way to diversify their assets, and move away from paper-based assets such as mutual funds and stocks. Certified coins, which are coins that have been authenticated and graded by a major grading service, are highly sought after, primarily due to the possibility of long-term profits.

If you’re interested in collecting certified rare coins, read on for a few tips to keep in mind along the way.

• The value of a bullion coin has to do with the spot price of gold, which is the price of one ounce of gold at this very moment. The same goes for a certified gold coin, but another aspect of its value is its numismatic value. That refers to the rarity of the coin, as well as its physical condition.

• To check the authenticity of a certified coin, you can contact an independent company like Professional Coin Grading Service, or PCGS. You’ll find a registration number on the plastic slab of the coin. Simply call or visit the company online and give them the registration number, which will verify the certification.

• The term “population” refers to the number of coins within a certain grade. If there are less coins within a particular grade, those coins will end up being worth more because of scarcity.

• The term “grade” refers to the overall condition and value of the coin. Grade is determined by 5 factors; strike, preservation, luster, color, and attractiveness.

• Some certified coin collectors strive to own all of the denominations of issue and years for a coin program. This is also known as a date run, and coins within the highest grade possible will be worth the most.