How to Achieve Success in the World of Rare Coin Investing

Ever since gold and silver prices began skyrocketing a few years ago, more and more people have been looking to gold and silver coins as a means of investment. If you are in search of rare gold and silver coins to add to your portfolio, there are some reputable and honest coin dealers that can help you acquire these popular investment instruments at fair and reasonable market prices. Unfortunately, there are also people looking to scam the uninformed, selling them gold coins at highly inflated prices. Therefore, you must research and learn the art of coin investing while working directly with a dealer that is widely respected throughout rare gold and silver coin investing circles.

As with any other type of asset, it’s imperative that you perform your due diligence and become well informed about your investments. If you lack adequate knowledge about numismatics to make an informed investment decision, it is a wise idea to consult with a professional coin dealer in order to learn about the best rare gold and silver coins for your budget and needs. An experienced and professional dealer, such as Monaco, will also be able to determine the authenticity of rare coins you may be interested in and detect fine distinctions that are responsible for a coin’s grading.

Once an exclusive hobby for royalty and the wealthy, today’s rare coin collectors and investors span the gamut of economic and social classes. From the wealthy to ordinary people in search of a wise investment, millions of people are turning to rare coins for a realistic investment option. It is estimated that today’s highly active coin market is comprised of more than 100 million rare coin investors. Despite the recent popularity of rare coin investing, it’s interesting to note that rare coins have only become widely popular in the last 50 years as an increasing number of people are realizing that rare coins are an ideal way to diversify their investment portfolios with tangible, tax-free assets.

Before investing in gold and silver rare coins or bullion, you should perform research and obtain adequate knowledge on the subject. According to Jeffrey Bernberg, President of the Professional Numismatics Guild, “If you don’t know your gold, silver, or platinum coins, you’d better know your coin dealer to help you make responsible decisions.”

If you are considering adding gold and silver coins to your investment portfolio, here are some factors you should definitely keep in mind.

Buy the Best Coins You Can Afford

If you are seriously considering investing in rare gold and silver coins, you should purchase the rarest and highest quality coins you can reasonably afford. While there are hundreds or thousands of different types of coins to choose from, these coins enjoy the fastest and highest level of appreciation.

Develop a Plan

Rather than haphazardly purchasing coins, it is important to identify a goal and diligently work towards it. Typically, coins increase in value when they form a complete set. Unfortunately, the rarity of some coins makes many sets difficult or impossible to complete. Keeping this in mind, you should identify types of sets that would be realistically possible to achieve for the money and time you have at your disposal.

Only Invest in Graded and Genuine Coins

Ensure that the coins you are interested in buying are genuine rare coins that have been graded. Certified genuine coins that have been graded by a respected independent coin grading service, such as NGC or PCGS, are worth far more than coins that have not been graded. Due to this, you should be extremely careful about purchasing a non-graded coin. In some cases, you will discover that a coin will come back from one of these grading services with a lower grade than what was originally promised at the time of purchase.

Beware of Suitcase Dealers

Suitcase dealers are basically private individuals who practice coin selling online in an effort to make a quick profit, often at the expense of others. They pretend to be professional dealers, but the coins they sell are often ungraded and of low value. However, they sell them at high prices based on the false premise that they are much more valuable than they actually are. When buyers send the coins to be graded, they find out the true value of their coins when they come back without a grade. If you are truly serious about becoming a rare gold and silver coin investor, you should ensure that you only do business with well-respected and reputable dealers with years of experience in the coin industry.

Learn as Much as Possible about the Coin Industry

If you are interested in investing in rare coins, then you must learn about the industry and the various types of coins available in the marketplace. Doing so will better position you to make sound investment decisions. Fortunately, a great deal of information can be found online, but at the same time, you should proactively talk to coin dealers, coin shop owners, and other avid collectors and investors who can provide you with valuable advice.

Study Coin Prices

Knowing how coins are priced is just as important as knowing about the various types of rare coins to invest in. If you have decided to be a gold coin investor, you should know that gold bullion coins are bought and sold at a small premium above the current spot price of gold because sovereign governments that mint the coins add a fabrication fee. The spot price of gold is typically based on 100-ounce bars made of .999 fine gold. Gold bullion coins, which range in size from 1/10 of an ounce to one ounce, can trade anywhere from three to 15 percent above the spot price. This premium is based upon several factors, such as the type of coin, the size of the coin, and the number of coins being purchased.

Know the Difference Between Bullion and Collector Coins

Gold and silver coin investors should be able to distinguish between bullion coins whose value closely follows the spot price of gold and rare gold and silver coins that are bought and sold with a substantial collector premium, which is based on supply and demand. Some types of U.S. gold and silver coins in circulated condition are often widely available for a small premium above their bullion content. However, these same coins may have much more value if they are in mint condition.

Sometimes, the condition of a coin can increase its rarity, perhaps adding thousands of dollars to its value. The current market for high-quality, accurately graded rare coins is stronger than ever before, making it an ideal time to become an informed rare gold and silver coin investor.

How to Achieve Success in the World of Rare Coin Investing
5 (100%) 11 votes