Your Next Investment Move

Since they first started striking coins many centuries ago, hoarding these highly valued tokens has been a solid financial strategy.  As time passed, certain coins became more and more collectable, which created an excellent investing opportunity for some, as well as a wonderful hobby for others.  These days, many people collect coins because it is both enriching and profitable at the same time.

There are plenty of respected publications and financial experts that agree that precious metals and rare coins are excellent additions to a financial portfolio.  Not only do they give the holder an opportunity to add necessary diversity to their finances, but it also gives your nest egg much more growth potential without adding any risk.  Time has proven that rare coins and bullion coins will both be reliable at storing value, which is highly appealing these days.  Unfortunately the same cannot be said for paper money.

The problem with paper money is just that – it is paper.  It has no real intrinsic value, only the number that is printed on it.  As an exorbitant amount of money is printed it becomes less and less valuable.  At this point in time the dollar has much less purchasing power than it once did, which is why so many people are looking for better solutions.  Unlike paper money, bullion coins and rare coins have real tangible value based on their precious metals composition, historical significance, scarcity, and collectability.  There is no way to go back in time and create more of these treasures, which ensures that they will always have real worth.

The recent recession has pushed many people to buy rare silver coins as protection, which has driven prices higher than ever before.  In the past the world of numismatics had a relatively low population, especially as an investment.  Coin collecting was once a niche hobby but today it has become much more common.  As people stake their claims on the limited supply of rare coins, their value grows.  Securing your rare coins now is a wonderful way to plan ahead for the future.

Rare numismatic coins and bullion coins both require a different approach.  Although the two sometimes overlap, there are certainly differences that must be acknowledged.  Bullion coins exist as a means to invest in precious metals.  They tend to cost slightly more than the current market price for gold or silver and have little collector’s value because they are mass produced.  As time passes, there is always a chance that they will become more collectable, but they generally follow the precious metals market more than the numismatic market.

Rare numismatic coins are valued for a number of reasons, usually because of historical significance, a unique back story, a minting error, or something along those lines.  Something besides their precious metals composition makes them exceptionally rare which means that they are also exceptionally valuable.  They will usually cost more than their precious metals content, but they also tend to appreciate in value more over time.

One excellent way to make rare coins even more profitable is to build full sets.  A set is a group of coins that are all directly related, such as a group of all American coins produced in a certain year, or something along those lines.  A full set often fetches more money because you eliminate the legwork involved in putting it together.  You can also frame the set to make it even more appealing.  It is worth noting that some key-date coins may be necessary to complete a set, which can be expensive.  Make sure that you spend some time planning a coin investment so that you know exactly what you are getting into before you spend a cent.