If you are wondering why so many people are investing in rare coins and bullion coins these days, you are not alone. It is no secret that traditional investments like stocks are being avoided in favor of these precious metal tokens. There are plenty of reasons for this, but the main one is that they have built-in value and tangibility. Too many people have seen their money dissipate into thin air, simply because of reasons out of their control. Coins offer more stability, which is so desirable in these times of economic uncertainty.
Rare coins are an excellent investment because they usually have a very long history that proves their worth in society. For example, a coin that dates back to the 18th century can have its value traced back many years. If you see that it has steadily increased in worth over the years, you can buy confidently knowing that it is only going to continue aging and gaining more value. As time passes, rare coins become more rare and thus more valued by collectors and society as a whole.
Of course, there is a degree of caution that must be used if you are going to invest in rare coins. Unfortunately, there are dishonest business practices that happen. Even if a coin dealer is not intentionally trying to pull the wool over your eyes, there are fakes and misrepresentations that may slip through the cracks. There are steps that can be taken to avoid problematic investments, however.
The most important thing you can do to protect yourself is to find an accredited dealer that has a long history of satisfied customers. This will greatly reduce the risk of buying something illegitimate, and will also provide you with options if something goes wrong. If a company has been in the rare coin business for 50+ years, it is highly likely that they will still be around 50 years down the line. If you try to sell your rare coin, only to find that it is a counterfeit, you should still be able to seek recourse. The same cannot be said for private dealers or new companies who come and go in the blink of an eye.
The difference between a rare silver coin and a bullion silver coin is substantial. To the untrained eye they may seem similar, but the value of them can be worlds apart. For example, a beat-up, old silver Morgan dollar from Carson City may not be as pretty as a sparkling new silver Eagle coin, but you can bet that it is going to be worth considerably more. It is important to understand that bullion coins are just a vehicle to own precious metals, while rare coins are worth significantly more due to their scarcity and historical significance.
If you want to get a feel for the rare coin market without spending any money, just pick a particular coin or style of coins and start following it. Look into their values in the past, as well as their current values. Talk to coin dealers about which coins are most popular and what kind of trends seem to be happening. 2013 has already been an amazing year for rare coin investors, but there are definitely certain coins and styles that are panning out better than others.
Understanding why 2013 is the year for rare coin investing may be difficult until you start taking the time to educate yourself about this exciting opportunity. Rare coins have many advantages over traditional investments, and there is still time for you to get in at the ground floor. Although coin investing is growing in popularity quickly, the market is not yet too flooded. There is still time to buy the perfect coin at the right price.