Rare Coins Are An Attractive Investment

Rare Coins Are An Attractive Investment 5.00/5 (100.00%) 3 votes

Over the last 20 years investing in rare silver coins has become more popular, and became even more popular after the Great Recession as investors began searching for alternative investments, other than stocks and bonds. According to cointrackers.com, coin collecting in the US alone is a $10 billion a year industry. While the dividends aren’t immediately apparent, rare coins appreciate in value over the course of time.

Collecting rare coins offer a way to store wealth and it is patriotic as well. Coin collections can be left to family members long after you have left this earth, and it will be worth much more than leaving your heirs flat dollars. After all, one can only wonder how weak the dollar will be in 10 and even 20 years down the road.

Market Watch says that to truly succeed in rare coin investing you need to sleep, eat, and dream about rare coins. In other words, you must be truly fascinated by rare coins, because this ensures you have the necessary knowledge to succeed. Experts say classic rare gold coins along with high end silver and copper coins offer the best way to invest. However, you must be savvy enough to spot fraud because there are counterfeiters within the collector ranks. You can neutralize this negative aspect of the hobby by being well versed in rare coins.

Stocks go up and come down, and precious metal spot prices set records then undergo a price correction. Yet, rare coins tend to appreciate in value despite tough economic times. One veteran coin collector, Mike Nottelmann says the single best investment you can put into your rare coins is time. If you do not want to spend the time to understand rare coins, you are better off investing in silver and bullion coins. If you take the time, investing in bullion along with rare coins is a balanced approach.

One of the keys to getting a return on your investment is to only invest in US rare coins. Stick with coin series, like the Morgan Dollar or Lincoln Cents. When rare coins get hot you can expect them to stay that way for a long while, because there is collector demand for the coin. Knowing the trends and which coins to buy only comes when you have researched and studied the rare coin market.

The rarest coins offer the highest profit potential, however coin condition contributes to this value. The rarer and better grade a coin is the more it is worth. If you plan to buy coins online consult the Better Business Bureau to determine what their reputation is. The longer a dealer has been in business the more likely he is to be honest and reliable. There are two grading services, the PCGS and the NGC. PCGS graded coins tend to get higher prices because the perception is they have tougher grading standards then their competitor. Coin grading is very subjective, and the difference between one grade and the next can be thousands of dollars.

In the end, if you want to save money in the 21st century you must invest. Interest rates are so low you actually lose money when money is kept in savings or money market accounts. Most who invest partake in the stock market. Yet, investing in stocks and bonds without the protection of precious metals or rare coins is risky. Since both gold and silver are trading at low spot prices bullion coins are a fine way to protect paper assets. Add rare coins to the mix and you can take your portfolio to the next level.