Tips For Collecting Rare Coins

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Collecting rare coins is one of the ways that you can invest in precious metals. It’s important to understand the distinction between collecting rare coins and investing in precious metals in the usual fashion, which includes buying bullion and bullion coins, neither of which are rare nor have value outside of their bullion value associated with them.

Collecting rare coins takes a bit of patience, some research and a decent knowledge of the rare coin market in order to be successful at it. If you do get successful at it, however, you may find yourself not only enjoying the fruits of an investment, but actually having a lot of fun doing it.

Stick to the Familiar

When you’re collecting rare coins, the best bet is to stick with coins that are well known. This prevents you from being scammed over coins that are so rare that it’s unlikely that you’re ever going to run into a specimen to buy. For example, silver dollars and gold dollars have been used throughout US history. Some of these coins are exceptionally rare, but there are many specimens on the market that are from coin series that are very well known and very easy to identify.

Some of the types of coins you might want to look for include Morgan silver dollars, Peace silver dollars and others that will be familiar to any numismatist. Where numismatists are concerned, you’ll find among of the most important resources in collecting rare coins.

Certification or Bust

Any rare coin that you buy should be certified. You should never buy a rare coin based on somebody’s word that it is a genuine example of a rare coin. What you want is a numismatist to certify the coin, guaranteeing that it’s the real thing and, at the same time, giving you an objective assessment of the condition of the coin that you can rely upon when selling it.

Certification is done by third parties. A certified coin is typically kept in a sealed slab, preventing it from being swapped out for a fake version of the same coin. You absolutely need to have rare coins certified. Even if you are numismatist yourself, certifying your own coins is akin to being your own lawyer. To put it bluntly, you have a fool for a client if you try to do this. Have a third party do it. They aren’t excited about the coin, they’re not thinking of it as an investment and that allows them to be objective and accurate.

Storing Coins

If you’re collecting rare coins as investments, you will want to store them safely. Remember that condition is everything when determining the value of a coin. The bullion, of course, does have value, but a rare coin can be worth far more than the value of its component bullion and you need to keep that in mind.

The best place to keep a rare coin is in a slab in a safe. If you don’t have a safe in your home, you can use a safe deposit box and, particularly in the case of very expensive coins, this is a remarkably good idea. If you keep everything safe and secure, you should enjoy your coins for, realistically, the rest of your life and your family may enjoy them when you pass them down to future generations.

Remember that rare coins are investments just like investing in precious metals, but they are investments that have a bit more visceral appeal to them, given the fact that you are actually purchasing historical objects that have been around a lot longer than you and probably anyone you know.