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
11/23/2017
Rare Pepe Blockchain Cards Have Produced More Value Than Most ICOs
These tokens or assets are different than the technology used in Colored Coins, as they are not tethered to a specific BTC address or balance. This allows people to transfer bitcoin without affecting underlying assets like Rare Pepes. In addition to the ... more info

11/23/2017
20p worth £1,350 being given away - THIS is how you can get your hands on the rare coin
The rare coin was found by a collector named David Crosier, who got in touch with ChangeChecker to say he had found it. He found the 20p in his change after spending 50 years collecting coins. Thinking the coin was plated, David sent it to The Royal Mint ... more info

11/24/2017
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

11/24/2017
Coin Collectors Show off Passion for Collection, History
James Sego, president of JMS Coins in Coeur d'Alene, has a 1971 Eisenhower silver dollar error piece that comes with its own story. "Isn't that kind of cool?" Sego said as he pulled it out of a display case. "They're actually pretty rare. They're called an ... more info

11/21/2017
The top 5 most valuable united states coins
1838 Half Dollar (O) Due to a yellow fever outbreak in New Orleans during the time of mintage along with complications with the coin press, the U.S. Mint produced only 12 of the 1838 Half Dollar. Purchasing one of these rare beauties will set the buyer ... more info

11/19/2017
Identical twins arrested following rare-coin shop burglary, car chase
Police arrested identical twin brothers – with nearly identical names – early Sunday, Nov. 19, on suspicion of burglarizing a Costa Mesa rare-coin shop and leading police on a car chase and foot pursuit. Costa Mesa police responded to reports of a ... more info