Any investor that is buying rare coins is part of the bigger emerging trend in coin pricing and grading. This trend began over six years ago when the industry started grading specific coinage, to determine those of premium quality or lesser value.
Buying rare coins is often based on eye appeal by experienced dealers, numismatists, and hobbyist collectors. Much of the appreciated value diverts attention away from the value of coins based on grading. Many companies are choosing to have their coins verified and certified to ensure the grading matches the value of the coin.
Overall, this trend seems to have brought out additional price premiums for select quality coins, making some numismatists stay far away from any graded coin that does not meet the standard. The overall question is whether or not any coin that has not been graded can sustain its value over time.
Six years in the running seems to have no effect on the value of a coin that has not been graded. This might be due to the increasing demand in the market for rare collectible coins.
Rare Coins Are Not Just for Numismatists Anymore
It appears as though the world of buying rare coins has changed. It is no longer just filled albums of organized coins neatly placed according to the mintmark or date of issue. It now serves as a way to diversify portfolios and stabilize investment strategies during harsh economic times.
Some dealers have chosen to avoid using specific words including “investment” when buying rare coins. It is their belief that they’re simply selling the expense of physical objects. However, investors see it quite differently. They not only expect to pass down significant wealth to future generations through their collected rare coins, but to also realize a handsome profit at times when they sell them on the open market.
In reality, the investors are right. Buying rare coins is a simple and easy solution to store value through a hard asset. Even if they are not intended to produce income, the investment will most likely show a nice profit especially in the long term. All indicators are that a long-term strategy of buying rare coins can pay handsomely if held onto for generations.
Rare Coin Prices Continue to Rise
Historically, the prices of rare coins have risen significantly over the last few generations. This is more than just a result of coin collecting becoming a very popular hobby. Many investors seek out scarce coins with rare dates because they know over time, the price will climb substantially. Many competent dealers suggest buying rare coins that are difficult to replace or those that only infrequently make it to the market. Extremely rare coins that are in high demand will greatly increase their value in the near and distant future.
Due to scarcity, rarity, characteristics, condition and popularity, buying rare coins will nearly always generate great profits for investors that hold onto them for the long haul. They work well as an investment to diversify portfolios, and act as a fun way to understand the historical reference when the coins were in circulation.