This article will cover the question, “Are Coins An Investment.” This article isn’t meant to be used as investment advice but instead as a resource, alongside other resources to determine if investing in rare coins is right for you.
Coins as an Investment?
Are coins an investment? It depends on who you ask and, more importantly, what you buy. Coins get their value from a few different areas. Is it a part of a collector’s set? Is it highly sought after? What time period is it from? Where was it minted? Whose face is on the coin? Is it an important date? And so many other questions.
The majority of coins that have value and grow in value are the ones that have a minimal supply and a large demand. Certain coins, such as American silver Morgans, are always easier to sell than a less-known coin type.
The larger the market, the easier it is to sell. All though this doesn’t mean they’re better as an investment. Rare coins may take longer to sell, but you can make a more significant profit margin. It all depends on what you want. A more accessible sale when the time comes to sell? Or sit on it longer and possibly make more with a rarer coin.
Collectibles are a whole entire area where coins can gain value. Certain coins might be part of a hard-to-complete set. Maybe the coin has an extremely low mintage. However, one has to be careful with the collectible market. People often over-exaggerate what they have, so it is essential to buy from reputable dealers.
Collectibles as a market are very broad for investments. It can be anything from Pokemon cards, coins, bottle caps, stamps, artwork, and even instruments. Anything that has a following or was produced in limited quantities often demands a growing premium as it ages and remains in good condition.
Gold and Silver
Gold and Silver for a long time have been considered investments. Bullion is often considered an investment, and numismatic coins take a back seat. While they are similar, numismatic coins have more in common with the art market rather than the bullion market. However, the spot price is a helpful tool for measuring the potential value of the coin.
The quality of the coin plays a massive role in determining its value. A better quality coin will always be worth more than a damaged coin of the same type. Whereas with bullion, you only care about the amount of metal in the coin or bar, not if it’s been scratched.
Gold and silver coins will always be rarer than coins made of base metals (Nickel, Copper). The rarity of these metals increases as you go back in time because less gold was available for minting coins, making older gold coins rarer than modern gold coins. While coins made out of base metals can be quite valuable, you must be more informed to buy these coins safely.
History is perhaps one of the most important factors when valuing a coin. Is the person on the coin a famous historical figure? What time period is it from? Who held this coin before me? Many people enjoy studying older money and how it was used in trade. Many empires would melt conquered peoples’ gold and silver coins to mint their own coins. This practice was extremely common for gold coins because of the metal’s rarity.
One example is the Roman denarius. You can find various rare denarius minted during major historical events during the Roman Empire. While still remaining a reasonably affordable option for new collectors.
Coins have been minted in one style or another since 500 BCE(possibly even earlier). This means the majority of civilizations minted some version of coinage. Many of which you can still purchase today.
Graded Vs. Non-Graded
There is a debate about graded/certified coins vs. non-graded/certified coins. When buying a graded coin, the grading service matters significantly. Was it graded by a known reputable grader such as NGC Or PCGS? or a less known grader? There’s nothing wrong with either option. Mostly, it comes down to you as a collector and what you feel more comfortable with.
Coins can absolutely be treated as an investment. Like anything, you want your coins to carry aspects of each area discussed above. You need to do your research and check other prices that may be available. Many coins may not appreciate in price or even go down in value the same way a stock can go down in value.
Investing In Coins
Below is a link to our entire catalog of coins. We carry gold and silver coins while specializing in Middle East, Eastern European, and Ancient coins.
This is our Full Catalogue. We carry Bullion, Middle East, Eastern European, Certified Coins, and Ancient Coins. We strictly only sell coins made of gold and/or silver.