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
06/13/2019
Cult economist jailed for hiding rare coins says the coins are his now
The 58 rare coins at the center of two federal lawsuits are exceptionally valuable. Now a bankrupt company’s receiver wants them. And an antique dealer wants them. And so does Martin Armstrong, a self ... more info

06/25/2019
Top Pop 1925-S Mercury Dime Highlights David Lawrence Rare Coins Online Auction
Our Sunday Internet Auction #1071 offers a finest known Mercury Dime, a registry quality Barber Half, a Key Date Proof only Morgan Dollar, a frosty early $5 Gold piece and a countless number of ... more info

06/14/2019
Owners of Utah rare coin shop plead not guilty to alleged $200 million silver trading scam
SALT LAKE CITY — The owners of a well-known Utah rare coin business accused of running a $200 million silver trading scam pleaded not guilty in federal court Thursday. A federal grand jury returned a ... more info

06/23/2019
Robbery/Theft Investigations (Rare coins, Paper Money, Gold and silver)
Open the tools menu in your browser. This may be called “Tools” or use an icon like the cog or menu bars Select the option or tab named “Internet Options (Internet Explorer)”, “Options (Firefox)”, ... more info

06/12/2019
eBay: Rare 50p coins sold for £230 - where can you get the set? Which coins are included?
Rare 50p coins have been selling for hundreds of pounds on eBay, with sets going for even more. One particular set is this incredibly unique collection by Royal Mint, which sold this week for £230. ... more info

06/12/2019
Rare Isle of Man Peter Pan 50p coins released – here’s how to get the set
State pension age changes: I’m now too young for a state pension, but too old to study for a Masters ... more info