Almost everyone has a coin collection of some sort. Whether it’s a jar full of pennies that were minted the year you were born, or a highly diverse and valuable collection of rare coins that is better kept in a safety deposit box, virtually everyone has coins that they will never spend. In the case of rare coins, the likelihood is that you may one day sell them at a profit to another collector.
The value of rare coins is twofold. First, you are investing in desirable collectibles. Second, you are investing in something that is often made from precious metal, which is in and of itself valuable. The “collectible” value can sometimes be difficult to determine, as it will depend on quality, rarity, popularity, and innumerable other factors. The value of the precious metal contained in a coin made from gold or silver, however, is tangible and quantifiable.
Why Wouldn’t I Just Invest in the Stock Market?
The stock market can be exciting and profitable for investors who have the time and inclination to watch the trends, or the good sense to work with a broker. However, if you’re thinking of investing in rare coins, you are probably more interested in having a tangible asset, something that you can actually see, feel, and touch. Investing in rare coins may provide you with a source of pleasure that isn’t found in a paper statement delivered once a month in your mail.
How Do My Rare Coins Differ From Conventional Investments?
Your coins are what are called a “stored value” investment – this means that they don’t earn interest, don’t pay dividends, and will not benefit you immediately.
They are only valuable when they are sold. For this reason, most experts do not recommend that rare coins comprise the entirety of your investments.
On the other hand, you can sell your rare coins whenever you choose, and the value will not likely go down, as no more are being minted. In that context, investing in rare coins can provide an immediate, guaranteed return.
How Do I Protect My Investment When Investing in Rare Coins?
The best course of action is to keep your rare coins in a safe deposit box at your bank. If you choose to keep them at home, you will want to consult with your insurance representative to make certain that your rare coins are covered under your homeowner’s insurance policy.
Also, whether or not you are comfortable investing in the stock market, you need to watch it. This is because the best time to buy precious metals is when the market is trending upward. Most rare coins will be made of silver or gold. Keep an eye on the market, and don’t buy when the market is on a downward trend. When the market is booming, the price of gold or silver will at least hold steady.
What About Risk?
You may be attracted to rare coins and precious metals if you are averse to risk. You probably perceive these tangible commodities as guaranteed, simply because the resources are finite. Remember, though, precious metals investing means open market trading, and if investors don’t feel confident, they will sell off their precious metals in favor of other investments. Expect fluctuations, and if there’s too much up and down, feel free to pursue other investments.
Should I Consult an Expert?
There are innumerable companies, both within driving distance and online, that deal in precious metals and rare coins. This is because the popularity of these commodities has skyrocketed in recent years. Be careful. Make sure that the company you are dealing with is certified by a professional body operating within the industry.
You can make a great deal of money with precious metals investing, or you could end up losing everything, so make sure you deal only with certified advisors. Start small. Grow slowly. And have fun!