Rare Coin Investment For Beginners

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Traditional investments in stocks and bonds have been tumultuous over the past 5 years with the economic uncertainty and rising inflation.  In times like these, alternative types of investments have done well.  Previously, investors chose mainly between stocks and bonds, but these days they are considering investing in precious metals or rare coins as a way to protect their portfolios against the extreme fluctuations in the stock market.

One of the most stable alternative investment opportunities has been investing in rare coins.  No longer just consider a hobby, the rare coin market has buzzed with activity lately.  The increased activity in rare coin investing is due to the stability of coin values in contrast to the movement among other forms of investing.  Many rare coins are also made with bullion, which combines two of the most popular alternative investment strategies in one easy solution.

Investing in coins is a bit more involved than investing in stocks.  Though getting started investing in rare coins is fairly easy, there is a lot for a potential investor to know before getting started.  Research will allow the investor to create a stable portfolio that maintains and increases in value.

While stocks are an intangible item with value, coins are a very tangible store of value.  The very fact that an investor needs to physically obtain a coin makes investing in a coin a bit more involved than stock investing.  However, having the coin in possession will allow the investor to leverage the coin’s full value.  Because of this, there has been a rise in online dealers selling rare coins.

The unique, specialized nature of the rare coin industry means that investors will likely deal not only with online dealers but also with smaller dealers and collectors that aren’t regulated by the government the way other investing is.  Meanwhile, rare coin investing is regulated by two major trade industry bodies, the American Numismatic Association and the Professional Numismatic Guild.  These groups oversee the dealers and their business practices as well as having strict requirements for dealer membership.  Consumers looking to invest in rare coins would do well investing with dealers who are a member of either of those organizations.

The value of investing in rare coins is twofold.  First, most rare coins are made with bullion.  Bullion has increased in value enormously in recent years.  The coin itself has a base worth that has risen and continues to rise because of the materials that compose the coin.  Secondly, rare coins have historic significance that boosts their value.  These coins are generally out of production, old, and hard to find.  These coins will only get harder to find as they age and the value will continue to increase.

There are things to avoid when investing in rare coins.  For example, some consumer sites don’t have access to historically rare coins.  They instead sell coins that are made only of bullion and say that because bullion is rare and because of this the coin is rare, which is not true.  The value of those coins is tied only to the value of the bullion, not to rarity.

While there are things to avoid when investing in rare coins, there are also factors that savvy investors should consider.  These factors include the coin’s grade or the condition of the coin itself and the future appreciation of a coin, which reputable dealers show on an index.

With good research, investors can make sound decisions and purchases in the rare coin market.  These investments can prove profitable and may protect an investor from the wild ride of the stock market.