Many people pursue numismatics for over thousands of years already. This is the study of coins, tokens, medals, and paper money. Coin collection provides enjoyment and entertainment. It also offers unique educational experiences. From history and geography to chemistry and economics. This is one of the reasons why coin collection is often considered the number one hobby.
There is now a new reason why people get involved and interested in rare coins. It is the opportunity to own those coins and then make a profit on their sale. It often takes several years or more. Some rare coins increase their value over the years. Most people now see this as a great investment opportunity. Newbies should understand that there are a lot of things to remember before you buy rare coins. Buying rare coins for investment is not as easy as buying candies. Here are some questions you should ask yourself before buying rare coins.
Are coins right for you?
Coins are not a wise investment for all. You will not be able to use the money you invest in coins for several years. It is a long-term investment. Best gains are usually achieved over a period of five years or more. Coins are often part of a diversified portfolio. Make sure you can meet ordinary living expenses before committing to long-term investments.
What are you buying? And whom are you buying it from?
One of the most important considerations is the grade or state of preservation of the coins. The value of rare coins depends on their grade. Minute differences in quality may mean huge differences in value. There are several independent services established because of this reason. They render an impartial opinion on the grade of a coin. They then seal the coin in a plastic container. They usually include the grade indicator with the container. This is the process of certification. It protects you against buying over-graded coins. These are often over-priced as well.
What do you mean by “Modern Rarities?”
Advertisements and direct mail pieces market a lot of newly-minted coins. Often as semi-numismatic coins or private rarities. These usually take the form of commemorative coins struck for a special event. Some are to honor a specific political or folk hero. Small island nations sometimes min them. And then packaged in special presentation boxes. Certificates of authenticity are often included. Or something else to prove its credibility. These commemorative coins are sometimes referred to as good investments. This is because of their theme or restricted low mintage. Some appreciate in value after some time. But the majority of these ended up valued at close to their melt value. It will leave the owner with an expensive box and certificate. If your goal is to collect these coins for display or for the sake of collecting them, then do so. But if you plan to buy it for capital appreciation or making a profit, avoid these coins.
What should I beware of?
Many new investors avoid getting caught in the bargain price. Or a good deal that seems like something for nothing. When you buy coins, remember that no dealer gives away under its true market value. Dealers want to make money. They aim to have a reasonable profit on each transaction. Certified coins may have different prices between various dealers. Certified coins often offer protection against buying over-graded coins. Reputable dealers seldom have notable price variances on investment quality coins. Especially those that are available from other dealers.
What am I doing?
Knowledge plays an important role in buying rare coins. Numismatics is a specialized field. It has its own terminology that you should be aware of. There are lots of books about coins. You should learn the basics before you make a large investment. Attending a few shows at which they sell or trade coins will give you more information. Doing some research will open the door to future financial gain. This includes a careful evaluation of your financial goals.
You should find a reputable dealer. Do not let fancy brochures fool you. Ask about guarantees, too. Ask to see their organizational memberships. These organizations often intercede if a problem with a member dealer arises. Look at this now for more information about buying rare coins.