Rare coin investing

Rare coin investing

Are coins a good investment?

As with most investment markets the rare coin market moves in cycles where prices rise and prices fall. Factors that drive the market are numerous and varied and are similar to those that drive the gold bullion market. This correlation with the gold market is down to two factors: firstly many rare coins are made of high percentages of pure gold and secondly when stock markets are in decline investors will seek alternative, more tangible investments such as gold or rare coins and collectables in which to put their money.

Benefits of investing in rare coins

Affordability

Unlike many other investments such as stocks, oil paintings, real estate investing in rare coins is affordable for virtually all investors. The cheapest coins can be picked up for only a few dollars enableing children to develop a hobby/interest with their pocket money while at the same time for the serious investor there are example that sell for tens or thousands of dollars.

Limited supply

Virtually all collectable coins are not out of production. By their nature these kind of items are often tucked away and forgotten about, lost forever in someones attic or sold to a porn broker where they may end up being melted down or most likely sold to a collector who will not sell the coin on. This slowly reducing supply will tend to push prices higher over time (assuming demand stays relatively flat.

The fun factor

Investing in rare coins or joining a rare coin investing club is not just about making money. As with investing in any form of collectable the practise is often more of a hobby than a monetary pursuit. As with art collectors or antique dealers the thrill is more often than not in the chase. The excitement of discovering a rare gem in a flea market or garage sale cannot be underestimated.

Liquidity

In recent years the itroduction of the internet and online auction site, coin sites and exchanges has meant that there is much great liquidity in the market. Not only is it easier to buy and sell coins than it was a few years ago, it is much easier to assess the value of either your coins, or coins you are looking to buy. One word of caution - while many people successfully sell coins online be sure to take precautions as unfortunately there are some fraudsters out there.