The hobby of coin collecting is booming in part because of the rotten economy. Many collect coins for their heritage, artistic design, or just for the love of old and rare coins. Yet, a new kind of collector has emerged, the collector who buys and sells rare coins for financial gain. Given that this market is fast growing does indicate that the rare coin outlook will indeed be very good well into the future.
An informative article on elifetrust.com called “Collecting Rare Gold and Silver Coins” states that anyone can collect rare coins. However, they rightly advise that beginners study the market and have a complete understanding of rare coin market, before buying that first coin. This allows new rare coin investors to avoid costly errors which eat into profits. Take your time when investing in rare coins, especially when first starting out and you will find yourself reaping lucrative rewards.
It is interesting that the article says the current gold Bull Run has complicated investing in rare coins. This is because gold’s spot price is high and gold collectible coins do have worth based on their gold content when compared to the gold market price. Rare silver coins also offer worth based on silver content in the coin and the silver spot price, and silver has enjoyed a fine run along with gold. Today gold is just below $1600 per ounce, while silver hovers just below $30 an ounce. While these are not record highs they are still high when compared to a decade ago, and no one expects gold to dip to its $400 per ounce market value of ten years ago.
While collectible coins do have precious metal worth, investors should target coins that offer a high dollar return from the coin collector market. Rare coins are constantly being hunted down by coin collectors who can have an almost fanatic approach in their efforts to complete coin collection sets. If you have a very rare coin in mint condition you can expect a very high dollar return on your investment.
The article correctly states that there is a difference between rare and bullion coins and this is important to note. Bullion coins are minted by governments and provide a handy way to invest in gold and silver. While they hold a face value it is the precious metal within the coin and spot prices that determine their market value. Since most rare coins were minted from silver and gold they too have precious metal market value. However, bullion coins do not hold coin collector value like rare coins do, and it is rare coin collectors who will pay handsomely for the right rare coin.
There are many places to purchase rare coins, including classified ads, estate sales, and auctions. Classified ads can be risky and sellers have indeed been victims of theft when going this route. Estate sales and auctions can be quite pricy. Buying rare coins from an honest coin dealer is the best approach to take. The rare coin market outlook is good and investors should take advantage of it.