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
09/20/2017
Plan to Sell Any Gold Coins? It’s Best to Wait Until Spring
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09/17/2017
Local man's life changed by rare coin sold for millions
Life can turn on a dime. For a mystery man living in the Black Hills of South Dakota, an incredibly rare, slim dime has made him a millionaire twice-over, although he’s not planning on joining the jet-set just yet. But the next time you walk past a ... more info

09/18/2017
Did you buy a winner or a loser from the U.S. Mint?: Inside Coin World
The Investment Column: Rare Cars and Rare Coins A 1956 Aston Martin DBR1 Roadster recently sold at auction for $22.55 million, a record for a British car. As Steve Roach writes in “The Investment Column” in the October monthly, “Cars and coins are ... more info

09/18/2017
Amateur Archaeologists in England Unearth Rare Roman Mosaic
On Wednesday, September 13, Anderson & Garland will sell 66 coins at auction, all of which belong to the Diocese. "The collection is a rare opportunity to buy interesting coins that have been underground for 500 years," Wyrley-Birch says. "Most types of ... more info

09/20/2017
Rare coins stolen from store in Orange, $1,000 reward offered
A $1,000 reward leading to the arrest of whomever stole rare coins from a store in Orange. That's what police say 'Top Shelf Collectibles' is offering after someone broke in this past Sunday. The Orange Police Department posted the notice to their Facebook ... more info

09/20/2017
Few coins to trace Sweden’s history
The stories of his doings are somewhat fragmentary. Very rare coins with his name exist. The picture I saw is of a copy of a type of English king Aethelred II. His dates are 1022-1050, the latter is tentative. The next and last of that line was Emund the ... more info