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
04/24/2019
Man gets probation for pawning rare coins stolen from Gronk's house
DEDHAM, Mass. (AP) — A man who pawned rare coins stolen from Rob Gronkowski's home while the now-retired New England Patriots tight end was away to play in the Super Bowl has been placed on two years ... more info

04/23/2019
Check your change: New, rare coins to be dropped into circulation during Great American Coin Hunt
PALM BEACH COUNTY, Fla. — Now's a great time to keep a close eye on your pocket change. From now until April 28 at 11:59 p.m., more than a million new and vintage coins will be dropped into ... more info

04/22/2019
Rare coins being dropped into circulation for Great American Coin Hunt
Have you seen the #GreatAmericanCoinHunt on social media? Coin collectors are dropping more than a million new and vintage coins into circulation from now until Sunday, April 28. The Great American ... more info

04/23/2019
Rare coins released in Cincinnati could be worth around $50
DAYTON, Ohio (WDTN) – For the first time ever, the U.S. mint at West Point is striking circulating quarters that carry a “W” mint mark. Starting in April, coin dealers across the country slipped ... more info

04/19/2019
Great American Coin Hunt: Rare and valuable coins returning to circulation
SAN DIEGO — While paying in cash may be a thing of the past for some people, you may want to rethink that because the change you receive is about to get a lot more valuable. Hundreds of coin ... more info

04/18/2019
Hoard of more than 550 rare gold and silver 14th century coins worth an estimated £150,000 are dug up by a group of amateur metal detectorists
The haul includes 12 extremely rare full gold coins from the time of the Black Death and is thought to be one of the biggest hoards from the UK in the last decade. The coins are being kept in a museum ... more info