As a collector since the 1970s, coins are a terrible investment. Some popular oddities with high dollar prices work well, but most currencies are.
Coin collectors
grab the headlines when they sell their rare coins for thousands or even millions of dollars, but the vast majority of collectors will never see such a reward. The most valuable coins are so rare that a lot of money is needed to invest in one.Like other types of investments, the currency market can be volatile. Not every coin is a good investment. It's easy to get carried away by newcomers, unless they research and do their due diligence about the market and their potential purchase of coins. However, for those with the right attitude and education, collecting rare coins can be a fun pastime and an excellent protection against inflation.
While a coin may look real online or even in person, if you're not absolutely sure of its authenticity, have the coin evaluated by an external evaluator. The qualifier is neither a buyer nor a seller and has no interest in the market value of the currency. You can find a professional classifier through the Professional Coin Rating Service (PCGS). Some coins come with a PCGS certificate and will be hermetically sealed in a plastic holder with inner labels.
While most coins are worth no more than their face value, some are worth much more. Here are some things to keep in mind when determining the value of your currency. Coins can deteriorate if exposed to cigarette smoke, rubber, paint, fabrics such as wool and felt, and too much moisture. Keep your coins spotless by storing them in airtight plastic containers, such as package plates from third-party sorting services.
Then, place them in a safe place, such as a bank safe, for safe storage. Unprotected coins are easy prey for a burglar who breaks into your house. Like your other valuables, coins must be insured in order to be able to replace or repair them in the event of damage, loss or theft. Look for a valuables policy that provides you with comprehensive coverage around the world without a deductible.
Some policies will also provide an automatic coverage limit for newly purchased currencies. Investing in collectibles can be a great way to diversify your portfolio and reduce risk. The general rule is to invest in what you like when it comes to collectibles. If you have a genuine passion for rare coins, then a natural extension would be to invest in a coin collection.
If your collection isn't returned, you can continue to enjoy what you've collected. When collecting coins, as when collecting other items, the rarer the coin, the more valuable it is. Investing in rare coins has the advantage that it can generate significant benefits. However, it also has disadvantages to consider, including the fact that making money investing in rare coins takes time.
Coins, precious metals, such as gold bullion coins, and classic gold coins, such as the double eagle, can enhance the diversity of your portfolio. For serious investors, coins are a tangible asset that will bring diversity to a portfolio and protect against inflation, since the value of rare coins is generally stable. The rare coin market can fluctuate, as can the prices of precious metals, which will affect the value of your investment. By spending just a couple hundred dollars, you can start a decent collection of rare coins that you could sell for a profit a few years from now. Subjectivity is considered one of the risks of investing in rare coins, and quality has a major impact on value.
There are professional numismatic reference sites where investors can track coin price trends over many years and get an idea of how certain coins will fare in the resale market. As Oxford Gold Group noted, refineries will buy “junk coins” to melt their silver content. It's imperative that investors make informed decisions about their coins by looking at how experts have tracked them. For example, two Buffalo coins from 1913 may not have exactly the same price, even if the coins have identical variations and the same grading.
If you've just started investing in rare coins, consider getting in touch with a mentor who can guide you in researching the value and possible future value of coins. Access to resources and rating information has also made it easier for today's new collectors to enter the game. The general appearance of a coin and its appeal to both buyers and sellers are highly subjective issues. These include income-generating assets, such as forests and farmland, and commodities, such as precious metals and coins.
With this strategy, you buy a low-minted coin directly from the mint and then try to sell it quickly for higher profits. Despite the headlines about rare coins selling at record prices, it's often a matter of two buyers fighting each other.
