"Show me the money": A look at investing in rare coins
Having collectibles as an investment can be a great way to diversify your investment portfolio and minimize risk. The general rule of thumb is to invest in what you love when it comes to collectibles so that if your collection doesn’t realize a return, you still get to enjoy your collection.With uncertainty ever present in the public and private markets coupled with recession and other economic ups and downs, tangible assets, also known as hard assets, present a variety of options for investors who want to put money toward areas of their personal interest. These may include income producing assets such as timberland, farmland, and commodities of all kind. For more general information on investing in tangible assets, click here. Collectibles are fast becoming a popular investment vehicle for those who have lost trust in the public stock markets or are tired of fluctuations. Tangibles allow an investment to appreciate in value over time, which appeals to investors; however, personal interest in a tangible asset remains the number one reason people choose to invest in collecting them. Rare coins are considered to be a commodity-like investment where sentimental value may exist, but coins are one tangible that can also produce attractive financial returns. Note that there is a distinction between coins as bullion and coins as numismatics. Bullion has a higher ‘melt value’ – the value the metal would be worth if melted down. Numismatic coins, because they are often much older and made of various metals and components, have a lower melt value and are worth less when melted then they are in coin form. The general rule of thumb is to buy bullion for business, numismatics for fun.
This is the second in an AIMkts® series providing an introduction into various subclasses of antiques and collectibles. This installment: rare coins.
Why rare coins?People collect rare coins for the same reason people collect art, says Ilya Zlobin, ancient numismatic coin expert, dealer and enthusiast of TrustedCoins.com. “Rare coins, especially of the ancient Greeks and Romans capture the feel and the art of the time period [like] statues and architecture that have long been lost to history…” Also, says Zlobin, there is a very high upside resale potential should investors make the right buy for the right price. “…Stories of exponential growth understandable stoke investor interest in the world of collectibles,” according to a 2012 Barclay’s report. However, “Relatively few wealth individuals own treasure solely for its financial characteristics. Investors that do seek financial returns on insurance from their treasure typically favor commodity-like items, such as precious metals, coins and jewelry.” Once nicknamed “the hobby of kings“, collecting coins has become an everyman’s game thanks to a rise in numismatic scholarship, education, access to information and a growing sophistication of the general public over the last 500 years and is popularly referred to as “the king of hobbies”. For the average person, owning coins make possessing a piece of history remarkably accessible, and for those with an interest in antiquities, coins are more accessible, in general, than larger, tangible asset investments. For beginners, collecting rare coins may seem daunting. Experts and experienced collectors offer this advice:
By Alicia Purdy, Contributing Editor, Accredited Investor Markets
Download this article by right-clicking here and selecting save as For more great articles and videos on ancient coins, visit, http://www.trustedancientcoins.com/articles/ Get It Here: “Show me the money”: A look at investing in rare coins Fascinating article about numismatic coins. An ancient coin expert published this for educational purposes. via Trusted Ancient Coins - Feed http://www.trustedancientcoins.com/investing-in-rare-coins/amp/
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AuthorArticles & videos teaching people about ancient Greek, Roman, Biblical, Medieval, Byzantine and World coin collecting and investing. Archives
April 2023
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