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
06/19/2018
SS Central America treasure includes rare world gold coins
The wreck of the SS Central America includes a surprising number of world gold coins, like the finest known 1855-S sovereign from Australia. Images courtesy of Professional Coin Grading Service. A shipwreck in American waters well known for containing ... more info

06/16/2018
Rare coins and medals from Hawaii will be part of Holabird's June 22-26 mega-auction in Reno
Separate email addresses with commas. You may provide up to 30 emails at a time. RENO, Nev. – Holabird Western Americana Collections’ upcoming five-day auction, June 22-26 – officially titled June Treasures from Pacific Shores – is loaded with ... more info

06/18/2018
Rare Coins From All Over the World: Sincona Auction Review
Sincona’s auction 46 was all about gold – and gold has captivated people since the beginning of time. Lot 13: Australia, Sovereign 1861. Estimate: 800 CHF / Price realized: 2,500 CHF (excl. premium). The numismatic journey began in Australia where we ... more info

06/18/2018
How a Few Nickels Grew Into a Multi-Million Dollar Coin Collection
Morton-Smith’s father began an investigation into the coin’s origins. What he found inspired him to keep hunting for more rare monetary units; the result is one of the most significant numismatic collections in the U.S. “My dad had a thing for ... more info

06/11/2018
Singapore Postcard: Summit adds value to North Korea's coins
In this Monday, June 11, 2018, photo, rare coin dealer Joseph Poh displays two North Korean coins depicting its rockets program in Singapore. Stamped with images of “Eternal President” Kim Il Sung, national monuments or ballistic missiles, coins minted ... more info

06/19/2018
Rare Paddington Bear 50p coin has been launched - and one has already sold on Ebay for £16,000
A new, rare 50p coin featuring everyone's favourite bear has launched - and one has already sold on Ebay for £16,000. The Royal Mint has unveiled a new Paddington Bear fifty pence piece and one or two have already sold for a pretty penny. The new coins ... more info