Collecting and Investing in Rare Coins
It is estimated that a majority of us, at one time or another, has saved or collected coins. It may have simply been picking out an unusual looking coin from change received at a store, or noticing that the date of a coin appeared to be older than usual. Perhaps we just noticed the beauty of a Washington Quarter or the shiny toning on a Lincoln cent. For many, those early experiences led to a more serious endeavor.
At one time the blue Whitman coin folders provided a structure to collect a particular series and allowed the collector to immediately see how complete the collection had become. Later on coin albums became popular as a means of collecting and better preserving the coins of a particular series. But things changed dramatically in the mid 1980s when the grading services arrived on the scene and revolutionized the hobby and industry.
Professional grading by PCGS, NGC and ANACS eliminated much of the debate about condition as a primary consideration of value. The services also established authenticity by placing legitimate coins in holders and declining to authenticate the counterfeit or inauthentic.
Today coin collecting and investing has become a vibrant and growing pursuit. Market Watch estimates that there are 7 to 10 million serious coin collectors in the United States and many more in Europe and elsewhere. Great Collections, a major national auction company selling thousands of coins each week likewise estimates there are 10 million serious coin collectors in the United States. With a population of 332 million, the 10 million figure of serious collectors seems quite reasonable as it represents only 3% of the public. With a finite number of vintage collectible coins, many of which were melted, damaged, lost or destroyed over the years, the supply of rare coins does not come close to meeting the demand of several million collectors and investors.
Investing in rare coins can be a legitimate component of a well diversified investment portfolio. While traditional investment vehicles such as stocks, bonds, ETFs, mutual funds, and real estate should remain the primary focus, setting aside 5 to 10% of disposable (investible) income for rare coins and bullion may be an appropriate allocation. There must be a strategy and careful selection, but over time, investing and collecting rare coins can be a rewarding and profitable experience.
Let us help you build a collection of high quality rare coins to diversify your assets and pursue the sophisticated hobby that has existed for hundreds of years. With careful selection and a sharp eye for quality, a collector/investor can reasonably expect their collection to appreciate at a moderate rate over the long term, diversify their portfolio and provide a level of enjoyment experienced by millions of others.