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
eBay: 50p coin selling for £800 – do you have a dead ringer in your pocket?
Ebay is often used by sellers who want to showcase their valuable rare coin to collectors. A recent posting, which features a 2011 rare WWF commemoration 50p coin, is a good example. The coin, listed by user pthomas126, has been listed for a hefty price of ... more info

First Public Display Of Rare Coins At Long Beach Expo
The first public display of a new group of rare coins will be displayed at the Long Beach Expo from 10 a.m. to 5 p.m. on Thursday, Feb. 22, and Friday, Feb. 23, at the Long Beach Convention Center Hall A, 100 S. Pine Ave. The coins originate from the ... more info

Old coins, rare weapons draw crowd
An exhibition of old and rare weapons, manuscripts and coins was organised by Narinderpal Singh at the art gallery of the North Zone Cultural Centre, here today. Narinderpal is the collector of the old items. The World Punjabi Development Conference was ... more info

‘Rare’ £1 Gibraltar Neanderthal skull coin sells for £5,000 on eBay – could you cash in too?
If you've been on holiday to British territory which is on Spain's south coast, you may have spotted the coin. Technically, the coin is not legal tender in the UK but it may have slipped into spare change and is often spotted in circulation. It celebrates ... more info

David Lawrence Rare Coins Acquires Hall of Fame Collection
David Lawrence Rare Coins of Virginia Beach has purchased one of the most impressive sets of U.S. coins that has ever been assembled. The collection, pieced together by mega-collector Bruce Morelan via Legend Numismatics, was set to be auctioned through ... more info

The buyers guide to gold coins
Numismatics coins have produced some excellent returns on investment over the years. A good example of a rare collectible is the Efesos, an ancient Hellenic city and prosperous trading center on the coast of Asia Minor. They produced the 1/6 Stater more ... more info