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
10/15/2018
Have you got one of these rare £1, £2, 50p, 20p and 5ps coins? They could be worth a FORTUNE
If you are running short of a bob or two, then now is the time to have a rummage in the junk drawer at home to see what lose change you have in there. Because, according to the experts, there could we... more info

10/14/2018
The rare £1, £2, 50p, 20p and 5ps coins worth a fortune - check your pocket
We've all got a few pennies down the back of the sofa or at the back of drawer but a few may be worth a small fortune. Of the billions of coins in circulation there are a few hundred thousand which ar... more info

10/12/2018
Fargo man finds rare Spanish coin from 1700s near Red River
FARGO—Craig Cline of Fargo has done his share of treasure hunting. The carpenter-handyman and his metal detector have searched Fargo-Moorhead parks and fields looking for that one rare part of our pas... more info

10/09/2018
Most valuable rare £2 coins in circulation - and how much they're worth
But there are some rare variants on the coin, and limited edition version, that are worth a lot more to collectors, and could fetch you a pretty penny at auction. Here are the most valuable £2 coins i... more info

10/12/2018
Week’s Most Read: Collector finds rare version of 1983 Lincoln cent
No American Eagle palladium bullion coins will be struck and issued by the U.S. Mint in 2018, bureau officials announced Sept. 27. 1. Collector finds rare bronze 1983 Lincoln cent in circulation: ANAC... more info

10/15/2018
Meso Numismatics Scores Big with the Worlds Only First Release Coins
very rare inventory. That, in combination with the Meso App, helps in shaping the Meso Numismatics that we have become today!” To view the Company’s listing of these coins for sale, please visit www.M... more info