Getting The Most Out Of A Rare Coin Investment

Getting The Most Out Of A Rare Coin Investment 5.00/5 (100.00%) 6 votes

There is no strict set of rules when it comes to coin investing.  In fact, it may be the loosest investing opportunity out there.  However, successful investments require planning and a close attention to detail.  You wouldn’t just choose a stock to invest in out of a hat, nor should you make an uninformed coin investment.  Take the time to buy the book before you buy the coin and you will inevitably have better results.

Collecting numismatic coins is a sound financial strategy that protected many savings accounts, and also strengthened many.  Rare coins are not for everyone though.  There are no real guarantees in the rare coin market; you really have to arm yourself with some basic knowledge in order to make them work for you.  You can’t expect to just buy a coin that sounds interesting and then watch it grow like Jack’s beanstalk.  Careful planning and sound strategies are the water that makes this plant grow.

The majority of a rare coins’ value stems from its market demand.  It is a common misconception that rare coin investing is just a way to own gold or silver.  While this is certainly a part of it, the fact of the matter is that rare coins carry substantial premiums over their bullion coin counterparts.  The difference between a regular gold coin and a rare gold coin can be millions of dollars. 

The rarity and condition of the gold coin are two other incredibly important factors that determine its worth.  In most cases, a bullion coin that weighs an ounce is worth an ounce of gold, whether it is scratched or not.  Bullion coins are obviously more desirable and thus more liquid when they are in good condition, but really – gold is gold.  Bullion coins are not usually scarce.  They are usually mass-produced for citizens to invest in precious metals.

On the other hand, one miniscule scratch, touching the face of the coin, or even cleaning it delicately, can all drastically reduce the value of a rare coin.  It is absolutely imperative that you take every precaution and more when it comes to protecting your rare coins.  This makes them more of a risk, but the payoff potential is significantly higher as well.

Physical threat of destruction is not the only risk that comes with rare coin investing.  There is also the chance of getting ripped off by a dealer, whether they intend to or not.  In order to protect yourself from this, you must only buy coins that have been graded by a known third party service.  If a coin has been graded by the dealer selling it, you have every right to be suspicious.  Inaccuracy in the rare coin market is one of the biggest problems, especially because it usually does not become evident until years later.  When it’s too late for recourse.

You will find that getting the most out of a rare coin investment simple involves caring.  If you are dedicated to maintaining the best coin collection possible, treating it as a point of pride, good things will come about naturally.