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.

Go to Next Chapter "What is a "Rare Coin"?"


Rare Coins News
New pound coin: 'Rare' 12-sided £1 coins on sale on website eBay for up to £2.5k
New 12-sided £1 coins are already being put on sale online with some "extra rare" coins being offered for hundreds of pounds. The Royal Mint’s new coin, which is described as the most secure in the world, went into circulation in the UK on Tuesday. more info

As new pound coins sell for £300, here’s the other rare coins worth a fortune
Bags filled with the new £1 coin have been delivered to banks up and down Britain – and naturally, eBay has already gone bonkers. Future of Europeans in UK still uncertain as Brexit set to be triggered New £1 coins are already fetching three-figure ... more info

The rarest and most valuable error coins in circulation worth up to £1,000 – do you have an undated 20p or a £2 with a typo?
Brits have been urged to check their spare change for valuable £1 coins before they spend them. But other rare and valuable coins could be in your collection – ones that contain small and subtle minting errors. Last month, The Sun Online revealed how ... more info

CoinWeek: Private Lot Viewing: Goldberg Auctioneers’ June 2017 Pre-Long Beach Rare Coin Sale – 4K Video
CoinWeek editor Charles Morgan sits down with Ira Goldberg for a private lot viewing of featured lots from Goldberg Auctioneers' upcoming June 2017 Pre-Long Beach Rare Coin Sale. In this video, a giant gold nugget, a host of rare coin offerings, including ... more info

New pound coin sparks bidding frenzy as 'rare' quids sell for £200 online
THE new 12-sided pound coin has arrived in Britain today and some “rare” editions are already being flogged online for as much as £200. The ultra-safe coin, which boasts a high-tech hologram features, has finally entered circulation with some lucky ... more info

What to look for in the new £1 coins - could you bag a rare one worth £250?
It’s been called the world’s most advanced coin and is already in general circulation – but the new £1 coin could be worth a whole lot more. Featuring a new flickering ‘security-proof’ hologram, the new coin will replace the current ‘round ... more info