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
06/19/2021
Detectorist finds rare gold coin from plague era
A "very rare" Edward III gold coin lost in the wake of the Black Death has been found by a metal detectorist.The 23-carat leopard was discovered with another gold coin, called a noble, near Reepham, ... more info

06/12/2021
Rare Australian coins sell for a world record $1.5MILLION each with only a handful ever made
One of the unique coins, belonging to Lot 104, is a £5 coin that was minted in Melbourne in 1921, part of a collection of just six others. The other is a George V Sovereign a year older. more info

06/09/2021
Rare, unique and historical coin SELLS for whopping Rs 138 Crore, here's why
Rare, unique and historical coin SELLS for whopping Rs 138 Crore, here's why - The coin is rare because it is the only example to have been “legally sanctioned” for private ownership by the US ... more info

06/09/2021
Rare & Historical US Gold Coin Sells For Whopping Rs 138 Crore, Sets New World Record | Here’s Why
It has smashed the record for the most expensive coin in the world, set by a 1794 Flowing Hair silver dollar that sold for $10 million in 2013. more info

06/15/2021
Rare 20p error coin sells for £57 on eBay – how to spot one in your change
A RARE 20p coin that has been minted with an error has sold on eBay for £57 after sparking a bidding war. The 20p piece was a “mule coin” meaning the design on its “heads” ... more info

06/09/2021
A Single Gold Coin Sold For A Record $18.87 Million At Auction While Bitcoin Continued To Crash
An extremely rare and historically significant gold coin sold for a world record $18.87 million at auction while Bitcoin continued falling. more info