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
The error on this rare £2 coin means it's worth a small fortune
If you've managed to find one of the rare coins in your stash, it is advised that you get it valued by a coin collector or expert, before placing it on eBay.co.uk or selling it elsewhere. The Royal Numismatic Society is the UK’s foremost society for ... more info

Rare £2, 50p, 20p and 2p coins you really should check your shrapnel for
Have good look at all your change - and 50p, 20p, 2p and £2 coins in particular - because they could worth a pretty penny. It's not just new £5 notes that could make you serious amounts, plenty of the coinage that has been circulating for years has ... more info

Legend Rare Coin Auctions’ Regency XXI Sale: Lots You Need to Know
Legend Rare Coin Auctions offered Part I of mega-collector Bob R. Simpson’s collection of Standard Silver Patterns. No collector has ever acquired a complete set – there are several unique pieces, and a quite few more that are exceedingly rare. more info

Coin collecting raises a lot of questions and concerns for many, especially beginners. Here are some general answers to the top five most frequently asked questions our staff at Bellevue Rare Coins have been asked. 1.What Makes A Coin Valuable? Simply put ... more info

Rare coin donated to Indiana church sells for big bucks at Chicago auction
WHAT: A rare 1866 proof Liberty Head double eagle gold coin donated to a church in Valparaiso, Ind., brought riches to the congregation after it was consigned to Heritage Auctions. Available in person at a Chicago-area auction and online, the coin, one of ... more info

Small Business: Coin company knows the value of its customers
Fort Worth Coin recently moved to the corner of Lancaster Avenue and Norwood Street after serving customers at a West Seventh Street location for 44 years. In addition to buying and selling rare coins and the products that accommodate collecting them ... more info