Numismatics is a big passion for many people, who often consider rare coins as investments. Many rare coins have fetched millions of dollars in auctions, which says a lot about the demand for such collectibles. Should you invest in rare coins? Can you consider them investments in the real sense, like gold and silver coins? Here are some of the things you need to know.
Buying rare coins
There’s no denying that rare coins are surely liquid assets, because a lot of dealers are interested in buying such coins, besides are regular assets. However, coins are not meant for everyone. This is not something that you can buy today and sell a couple of days later. Rare coins are more like long term investments, and you have to stock them for a few years. Rare coins are also ideal for people who have a diversified portfolio. Investing all your money in a rare coin is never a good idea, although having a few ones in your collection is not a bad thing in the long run.
Consider the source
With rare coins, you have to be careful about a few things. It is important to understand and appreciate the numismatic value of the coin, which refers to its market value. The grading is done on many factors, including the amount of precious metals found in the coin, its rarity, beauty and overall history. It is also important to check the state of preservation. Many dealers have state-certified grading equipment, which are used for evaluating the price of the concerned coin. Of course, the overall aspects may differ. When you are keen on buying a rare coin, consider the source. Is the seller authentic? Are you getting a fair deal? Has the coin been certified by one of the known agencies or bodies? Ask these questions, and only when you are completely happy, take a call on the investment.
Beware of bargaining
Rare coins are known for their value, so beware if you find sellers offering great deals on known coins. There is no Santa Claus here, so don’t expect to pay anything that’s lower than the market value. Don’t bargain beyond a point, and yes, don’t buy coins if you have any concerns related to history and preservation of the concerned coin. You also need to be aware of all under the table and black market sales, which are nothing but shams in most cases.
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