A Companion to Rare Coin Collecting - Are Rare Coins For You?

Rare Coin

Are Rare Coins For You?

As with other investments, there are many anecdotes about individuals earning enormous wealth from collecting coins. Yet, even the more believable stories are about people who spent twenty years or more patiently learning and developing their numismatic skills. Unlike stocks or real estate, collecting rare coins requires a deeper commitment to learning and dilligence to augment personal knowledge. For successful collectors, there is an emotional attachment to the art not found in traditional avenues for personal finance. In short, as a serious long-term investment strategy, collecting coins is not ideal for everyone.
There are three important prerequisites one should consider before engaging any investment strategy. The first is: Do I have long-term funds that can be committed for a number of years? The second: Do I have the ability to meet ordinary living expenses with other resources. The third: Am I confident of my knowledge of my target investment?
Having the long-term funds to commit to your investment is particularly important when you consider the nature of rare coins. As with other investments, rare coins require a minimum period of "holding" and, to reap the best investment earnings, timing is essential. Rare coins have demonstrated a pattern of growth spanning many years and, for those "hold" their investments over extended periods, profits are the rule rather than the exception. However, for those expect an immediate profit, the results are often disappointing. Keep in mind that some coins might suffer from overexposure and investors who purchase at the peak of a particular cycle may experience substantial losses if they sell into a softer market.
Meeting your ordinary living expenses is paramount over any investment activity. Never expose yourself to possible losses that could jeopardize your standard of living. Since rare coin investing is a non-income producing asset, it should never be viewed as a "savings account" to dip into as the need arises. While certainly capable of providing strong capital gains, rare coins serve mainly as an excellent vehicle for capital preservation, as well as a hedge against inflation and other forces which erode the value of more traditional paper assets.
Knowledge can mean everything. At least where investing is concerned, knowledge can be your best asset. Being able to "see" a good deal is probably just as important as "smelling" a bad one. Unfortunately, there are always those individual who are eager to feed on the naive and gullible. Nearly all of the horror stories surrounding bad rare coin investments concern people who knew absolutely nothing about what they were buying. Save yourself the grief and learn the basics before you buy.
This text discusses some of the many books, magazines and newsletters that are available on the subject. Reading them will help sharpen your ability to "see" and "smell" the opportunities you may find.


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Rare Coins News
03/16/2024
6 Rare Coins That Will Spike in Value in 2024
Like most markets, the market for rare and collectible coins is as vulnerable to volatility and price swings as any other — and many coin experts expect plenty of volatility in 2024 due to the broader ... more info

03/18/2024
I’m a Rare Coin Collector: How To Spot Valuable Coins
Harrison Alley is a fiction writer, fantasy and sci-fi aficionado, founder of Fiction Lit, and an avid collector of rare coins. His passion for numismatics rivals his love of literature, and he ... more info

03/14/2024
Man reveals ancient coins he found under a church 60 years ago: 'Just children on a treasure hunt'
Norway's Møre og Romsdal County Municipality says a local resident has given up medieval coins that he found as a child. He had them in his possession for 60 years. more info

03/13/2024
Rare medieval coin with royal link is found languishing down a drain – and is now set to sell for an eye-watering sum
A RARE gold coin dating back nearly 700 years is set to fetch an eye-watering sum after being found down a field drain. The incredible 14th-century artefact was discovered alongside a trove of ... more info

03/14/2024
'I inherited an extremely rare coin collection — now they could sell for £1million'
EXCLUSIVE: An extremely rare collection of coins, some of which are the finest known examples in existence, is being shown to the public for the first time in decades, with some pieces potentially ... more info

03/15/2024
Mary Queen of Scots: Two 'exceedingly rare' 16th-century coins for sale
The two silver coins showing the Queen’s head will be sold in Zurich, along with a ‘superb’ gold coin featuring her son James VI. more info