Rare Coins

Rare coins prices depend on a lot of factors and we will discuss some of them here:

1) Coin Grading: Value of rare coins depends a lot on the coin grading. Usually, even a difference in 1 grade makes coins 2-3 times more expensive.

2) Mintage or how rare the coin is also affects the value. Coins minted in low mintages would have a better value in the series. Even if 2 coins look and grade identical and only differ in 1 year, the coin with the lower mintage for the year will have higher value.

3) Coin Market: - Demand and Supply for coins creating a coin market, where value of the coin would be influenced by a lot of political and economical factors. For ex: Some of the rare old coins from Eastern Europe would cost very little only, because there is a little demand and people can't afford to have the luxury of collecting coins. NOTE: We can see that this is changing now and some coins from Eastern Europe, especially Russian coins have a huge opportunity to increase in value and already started to become expensive even for serious investors.

4) Rare Silver Coins and Rare Gold Coins - There is an increasing demand in rare coins made from precious metals, such as silver and gold. The value of these rare coins grown dramatically in last years affected by increase in commodity prices and high demand. Refer to Silver Coins page and Gold Coins page for more information about rare silver coins, rare gold coins and rare gold coins value.

5) Error Coins - Some collectors specialize in so-called error coins. These are the coins that have been minted in error or with some unintended mistake in design. Prices of error coins vary considerably, and are based on denomination, date (if the date is visible), how significant the error, error type, how scarce the error is, and the dealer's demeanor.

NOTE: Be aware that values of error coins have been stable and steady over the decades. This is not an investment hobby, but an enjoyable and educational experience, and a good illustration of our imperfect world.

Please refer to the Coin Values page for more information about rare coin value and rare coin prices.

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This article by Eduardo De Resendes briefly summarizes the main advantages of investing in rare coins and offers some guidelines to prospective rare coin investors.

The following summarizes some of the main advantages of rare coin investments.

1) Rare coins have historically protected or preserved wealth as strong inflation fighters, particularly in countries whose paper currency has been severely weakened. Any time our paper money is threatened, rare coins can protect wealth much like an investment in gold bullion.

2) Rare coins are selling at steep discount to their 1980's highs and, given the cyclical nature of the rare coin market, may be poised for rapid price appreciation in the near future.

3) The beauty of rare coins can be enjoyed much like any other work of art. They are also a very private form of investment not subject to government scrutiny common to other types of investments held in banks and by brokerage houses.

4) Rare coins are easy to store and are virtually indestructible. They are also insurable. Rare coins represent truly portable wealth which can be moved from place to place very quickly and easily.

5) With thousands of coin dealers around, selling most quality rare coins is quite easy making them a fairly liquid investment.

Collecting rare coins is a great hobby that can also be an excellent investment for the future. Learn everything you can about rare coins to take advantage of this valuable investment opportunity.

Here a few basic guidelines that prospective investors in rare coins may benefit from.

1) Have clear objectives in mind when buying rare coins as an investment. Decide what types of rare coins you should acquire, the total amount you wish to invest in rare coins and the circumstances under which you will consider selling your coins.

2) Keep in mind that the market for rare coins can be particularly volatile. Further, the difference or "spread" between dealer buy and sell prices is normally much higher than the commissions charged by brokers for equity investments. Consequently, before rare coins can be sold by an investor at a gain, a larger appreciation in the rare coin prices must occur than may be the case for other investments.

3) Only buy rare coins graded and authenticated by the leading independent grading services whose standards are accepted industry-wide.

4) Only buy rare coins that are popular with collectors and are actively traded. Avoid thinly-traded esoteric coin issues which may be very difficult to sell in the future.

5) If you are planning to buy very expensive rare coins through the web, buy only Certified Coins.

Please refer to our Coin Investment page to read more on investment in coins.

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Ray Wyman, Jr. wrote this book for a group of investment advisors who needed a booklet that introduced basic concepts of the art of rare coin collecting and he was too kind too offer this book for free. Read it here - rare coin collection book , it has following parts: Introduction | Are Rare Coins For You? | What is a "Rare Coin"? | Grading Services | The Market | How to Buy Rare Coins | Holding Rare Coins | Selling Coins | Concluding Thoughts

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