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
09/23/2018
This rare 50p coin has sold for £1,000 on eBay
The Royal Mint has released some lovely new coin designs over the last few years. Special coins for Royal events, like weddings and births, have been released, as well as designs for the Olympics and ... more info

09/23/2018
These two rare £2 coins have sold for £3,500 on eBay
A pair of rare £2 coins featuring the face of a Portsmouth born literary icon have sold for £3,500 on eBay. The commemorative coins feature Charles Dickens profile created from the titles of his novel... more info

09/11/2018
Hundreds of rare gold coins found at construction site
Hundreds of rare gold coins found at construction site A rare treasure was found by construction workers building an apartment complex at the previous site of the historic Cressoni Theater in northern ... more info

09/11/2018
Hundreds of rare gold coins discovered beneath Italian theater
About 300 Roman-era gold coins were unearthed last week beneath what once was an Italian theater, authorities say. The rare treasure was found by construction workers building an apartment complex at ... more info

09/15/2018
These rare 50p coins could net you a small fortune - here's what to look for
Nowadays we often hear about rare coins being flogged online for hundreds, if not thousands, of pounds. Recently, a sought after £2 piece was snapped up for a staggering £3,500 on eBay. So it might be ... more info

09/17/2018
Supernova explodes on Tuvalu coin celebrating diamonds
We preview some of the feature content exclusive to the October monthly issue of Coin World. The Rare Earth coin features a 0.035-carat diamond, and continues the Perth Mint’s cooperation with a famou... more info