Jul
22

Buying (Non Gold) Rare Coins As An Investment

Here is an alternative to gold – buying rare coins as an investment. It’s slightly off topic, but it may interest some readers.

The advantages of buying rare gold coins are clear – gold is and probably will always be a highly valuable commodity to own. Buying rare gold coins allows the investor not only to have a stake in the competitive collectors market, but also to own gold at a time when the general price of gold is on an upturn.

However, it is also possible to invest in non-gold rare coins that can also increase in value. The rare coin market is cyclical, and many rare coins have been trading at the lower end of their historical spectrum of late. This represents a buy & hold opportunity if you know which coins to invest in.

Here are a few tips on buying and selling rare coins:

Many Of The Same Rules Apply As When Purchasing Gold Coins. When purchasing rare coins, many of the fundamental rules that we went over for purchasing rare gold coins still apply. For example, you would always want to go via a reputable and established dealer and try and obtain independent valuation advice before purchasing an apparent rare coin.

Educate Yourself On Rare Coins & What Their Values Are Before Purchasing. The more you learn about rare coin collectables the better. Familiarize yourself with the most valuable rare coins that will always preserve their value.

Shop Around
Before committing to any purchase, shop around to see if the rare coin can be purchased any cheaper elsewhere. Visit several dealers and get a feel for the price before jumping in. An increasing number of coin dealers are misrepresenting the actual value of the coins they sell. Even if the actual details of the coin are correct they try and capitalize on the naivety of inexperienced collectors and charge double, treble or more of the actual value of the coin. In such a case the buyer may have to wait a lifetime or more for the actual value to catch up with what they paid for it!

Take Any Investment Opportunities With A Pinch Of Salt. Many rare coins that are not gold can still have investment value – but remember that a non-gold coin will not have the safeguard value that gold coins provide. Beware when being given any sales pitch about the investment value of any rare coin.

Silver Coin – Take Advantage Of A Strengthening Silver Market. Silver, like gold, is seeing an upturn in its base price (at the time of writing). This means that investing in rare coins with a high silver content can provide an additional safety net.

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