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"?"

Top

Rare Coins News
07/09/2025
Rare 50p coin listed for £10,000 on eBay and there are 9m of them out there
A rare 50p Paddington Bear coin has been spotted on eBay for a staggering £10,000 - but a coin expert has urged people to be wary of purchasing 'rare' coins online ... more info

07/09/2025
Rare coin collector finds cent worth $1million - but only with one detail
Collecting rare coins can be a lucrative hobby, as you never know when you might stumble upon a piece worth a small fortune.While some designs may hold staggering value, others might not be worth the ... more info

07/07/2025
Rare 50p coin sells for £262 after huge bidding war – exact details to spot
BRITS should check their homes for a rare 50p coin after one sold at auction for 500 times its value. If you have a stash of loose change lying around, it’s worth checking to see if any of these ... more info

07/08/2025
'Keep an eye out' for rare penny coin from specific year worth £70
Brits have been advised to “keep an eye out” for a penny coin from a specific date. In good condition, this rare piece could be worth up to £70 to collectors. more info

07/08/2025
Rare $2 coin worth 10 times more due to this detail: ‘Lucky to find’
Flanders Coin can be worth up to $22 if you are lucky enough to find one. An Australian coin collector couldn’t believe his luck when he found a rare coloured $2 coi ... more info

06/28/2025
Coin collector discovers rare 50p version worth £25k that could be in your pocket
The rare version of the 50 coin was minted to commemorate Britain's withdrawal from the EU - however minting was 'paused' ... more info