Collectible Coins – A Safe Investment?
The world of alternative investments seems to be becoming more “alternative” by the week. The lure of media-friendly stories where 40-somethings have made a fortune from those childhood toys moldering in the attic are proving just too hard to resist, as professional investors look at everything from action figurines to retro games to make a killing.
But the most obvious type of collection is one that is only now starting to hit the highlights – surely a coin collection is one of the best examples of something that is hiding in plain sight – after all, what could be a better thing to collect as an investment than money itself?
The logic might be sound, but there are some pitfalls, so here we provide some tips for making money from money.
Look before you leap
There are literally hundreds of sellers offering coins online via a variety of platforms and popular auction sites. As a general rule, treat these with extreme suspicion. If you buy online, avoid those private sellers and only purchase from recognized professional traders, like the one here.
When a company is selling coins as its main business, you have confidence that they will provide accurate descriptions – it would not be in their interest to do anything else.
But with private sellers, it is very much a case of caveat emptor. That is not to say that every private seller is seeking to defraud you – but condition is such a critical factor in a coin’s value that it is foolhardy to pay on the basis of an amateur seller’s subjective opinion.
Know your subject
Whatever you are looking to invest in, you need to understand the subject matter in order to maximize your success. That applies to futures trading, property investment, Star Wars figures and, of course, coins.
Fortunately, as far as the latter is concerned, there is a wealth of information at your disposal, and most of it will only cost you your time.
Join a local club – there are literally hundreds across the Unites States – and attend meetings and local coin auctions. Here, you can see what is being bought and sold, right up close and personal. You will also be able to gain experience with respect to condition and how this affects value.
Protect your investment
One of the major plus points of coins is that they are highly resilient. Many have survived for thousands of years, and they do not require the care and cosseting of, say, an oil painting or a classic car.
However, as we have already discussed, condition plays such an important role in their value that you clearly need to handle and store them in such a way that they will not deteriorate.
Store your coins in coin holders, and be careful every time you put them in or take them out, to avoid scratches. It is advisable to wear gloves whenever handling your coins, or at the very least to wash your hands to avoid the transfer of your skins natural oils.
Category: Investing
