Finding good investments is difficult. For most of them, like stock market assets, you must put in a lot of research on the market itself, the relevant businesses, and social, economic, and political news and movements.
In times of crisis, assets like stocks typically lose value. During uncertain times, people will rather invest in physical objects. Real estate is one option. Another one is rare coins. They don’t only have a material value, their currency value, but often also a collector’s value that makes them much more valuable than their original worth. Here is why investing in coins is worth a try.
Rare Coins – A Secure Long-Term Asset
We are in the middle of a high inflation era. Our money loses its value and prices rise. The stock market has gone through many crashes during the pandemic when many investors chose to sell their stocks and invest in more tangible assets. Buying gold is one of the tips you hear from experts when it comes to securing your portfolio and reducing the risks of investments.
You can buy coins or bars with a very high gold content from a variety of providers. Gold bars, or bullion, are closest to the market value of gold because making them costs less effort than minting coins. Gold coins, however, have one major advantage. You don’t only buy the material worth of the coin, but also the potential collector’s value, which can be much higher than the market value of gold. The same applies to coins made from other valuable materials, like silver or platinum.
This means, that the longer you hold on to a coin, the more likely it is to increase in value, because its rarity increases, and so does its worth. Websites like rarecoin don’t just allow you to shop for rare coins and sell them, but also give you a lot of helpful information about hunting for the right investments.
What Makes a Coin Valuable?
By itself, a coin has multiple values. One is the value of the material it is made of. The other is the monetary value if the coin has a denomination. Neither of them is what makes a rare coin really valuable. If you want to determine the worth of a coin, you need to look at its rarity, condition, and demand for the specific coin on the collector’s market.
Rarity
The rarity of a coin is determined by how many of them were originally minted and how many of them have survived to this day. Naturally, the more exclusive a coin is, the more a collector is willing to pay for a rare coin. Some databases, like the Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS), keep records of how many coins from any given date and the denomination they have certified since the 1980s.
Condition
A coin is worth more if it has little to no damage. This means if you own an especially old and rare coin, and it is in flawless condition, you will get the best price for it. The condition will be judged differently depending on the coin’s original use. Some of them (Mint State Coins) was intended for circulation. Since they were used as payment, they are more likely to be chipped or scratched than Proof Coins. These are typically minted as collector’s items in the first place and are given and expected the best possible care to remain valuable.
Demand
Factors like the rarity and condition of a coin will influence how high the demand for owning the coin is. However, there are some other factors that are of note, like a coin’s historical significance or how well it has done as an investment in the past. Only if the collectors are aware of the rarity and significance of a coin, can they be willing to pay large sums of money for it.
What are the Advantages of Owning Old Coins?
Coins have some advantages over other forms of investments, like:
- value stability – the value of a coin can change, but historically a rare coin has never lost its worth entirely
- privacy – you can buy rare coins without having to report any purchases
- affordability – most collector coins that are intended as a long time investment can be purchased for as little as one to two thousand dollars
- portability – while it is advisable to store them in a safe or at the bank, the small coins are very easily stored and transported
- profit – a carefully chosen collector’s item will increase in appreciation over time and make a lot of profit
Conclusion
Rare coins are a great investment. You can use informational websites on the topic to find the best selection and go hunting for the best deals. Since their worth is tied to more than just their material, the value of a rare coin can rise almost indefinitely. Especially rare coins in good condition and with high demand will make much more profit than their original price. That is why it is a good idea to invest in coins now and profit from them after a long time investment when they have increased in rarity and demand in the future.
