Have you ever tried collecting rare coins? It can be great fun and a good investment.
Rare coin collecting is one of the few hobbies that are not just a mere pastime or leisure activity.
Coin collecting can get quite fascinating and many people get quite caught up in their hobby..
Coins are often thought of as works of art because of the beauty of their designs (Some of which are quite exquisite).
In very early days coins were utilitarian and featured just the amount the coin was worth or the Sovereigns head to enable people who could not read not to be cheated in commerce.
Early coins were mostly made of silver or copper with a few being made of gold or electrum (an amalgam of gold and other precious metals)
In more recent times the design of the coin has become a portion of its worth to collectors.
Coins will often portray the history of a nation by engraving and important historical event or anniversary into the design on the coin.
Seldom do people know the secret that coin collecting can also be quite a good way to make money.
Hard to find rare coins can turn out to be valuable and when found can be a good investment.
Rare coins have risen in value by anything from 300% to over 1000%.
So Rare coins that cost $1000 each in the 1970s could now be worth over $50,000 each today on average
This amazing increase in worth outstrips most other investments.
So what is the big secret behind the increase in this part of the coin market ?
It is quite simple really, rare coins have always been a good hedge against inflation and recession.
Big investors know this and many have a large piece of their investments in rare collectable coins.
In most unstable conditions (such as we have at present) rare coins maintain their worth.
When Governments seek to stabilise the economy by printing more money, the value of printed money may lose its value- Zimbabwe is a classical example as was pre-WWII Germany.
Many experts contend that rare coins are a more stable investment evn than gold bullion since Gold Bullion relies heavily on the daily gold price for its worth.
So What should you purchase ?
Early Coins are my personal choice - Exceptional Quality Roman Coins in Gold or Silver (yes Roman Gold Coins Do exist !)
My second Choice in Rare Coins would have to be Medieval Gold and Silver Coins of the period between Edward IIIrd to James Ist as these are possible to obtain and rise steadily in value. (Gold Coins in this era often fetch astronomical prices)
In American Coins, Early Gold is definitely the area to collect as these are avidly collected and would be easy to sell if needed. Prices are currently high but may well rise again.
If you prefer to collect Modern Coins then I would suggest sticking to PROOF Coins As these normally come with a C.O.A (Certificate Of Authenticity). A Proof coin is one that is specially struck and has never been circulated (indeed some proof coins are struck several times to enhance the sharpness of detail on the coin). Proof coins are normally SLABBED (encased in plastic) and may come with a valuation certificate too.
This article is not intended as investment advice and as with all investments, coins can go down in value as well as rise.
If you are thinking of collecting rare coins either as a hobby or for other reasons, I suggest you need reference books to advise you.
Apart from identification you need to know how many of a particular type of coin was produced in order to judge its worth.