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
04/24/2018
Rare coins you could find in your change - the most valuable £1, £2, 50p and 20p coins out there
Is there a fortune in your spare change, or hiding down the back of the sofa? Remember that 20p coin without the date on that was selling for hundreds of pounds? Or the 2p coin that is still selling for a small fortune? Every now and again there’s a ... more info

04/24/2018
Everyone Thought This Coin From the California Gold Rush Was Fake, But It's Actually Worth Millions
Coin dealers thought it was a forgery too, insisting that there’s no way he could have had a rare 1854 piece like that. But he brought it to the Numismatic Guaranty Corporation (NGC), a Florida-based company that does third-party authentication of coins ... more info

04/23/2018
Album auction offers rare 1904 gold so-called dollar medal
One of two examples reported of a gold so-called dollar medal related to the 1904 Louisiana Purchase Exposition highlights Stephen Album Rare Coins’ May 17 to 19 auction. Medal images courtesy of Stephen Album Rare Coins. Thomas Jefferson may have bought ... more info

04/24/2018
In largest ever Regency Auction, Legend Rare Coin Auctions to present many important coins
(April 20, 2018, Lincroft, NJ) — Legend Rare Coin Auctions’ 26th Regency Auction will be the firm’s largest and most impressive auction yet. The official auction for the May 2018 PCGS Member’s Show at Harrah’s in New Orleans will take place on ... more info

04/19/2018
Coin, believed to be fake, is actually real and worth millions
A third owned by industrialist Willis DuPont has not been seen since it was stolen in 1967. The rare coin inspected by NGC is not the long-lost DuPoint coin, according to NGC President Rick Montgomery, who said markings shown on that coin in photographs ... more info

04/24/2018
"Fake" Gold Coin Is Actually Worth Millions, According to Numismatic Guaranty Corporation
SARASOTA, Fla., April 24, 2018 /PRNewswire/ -- A small gold coin, mistakenly believed by its New England owner to be a fake, has been authenticated by rare coin experts as only the fourth known example of a $5 denomination coin struck at the San Francisco ... more info