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Coin Investing

An introduction to US coins as an investment
GoldCoin collecting in the United States became popular almost as soon as coins were first made. Although many of the early collectors were Englishmen, some of the founders of U.S. numismatics include Lonin G. Parmelee, Harold P. Newland and T. Harrison Garrett whose incredible collection was sold around the time the principle of U.S. Rare Coin Investments was making efforts at turning his own hobby into a profession in the 1970's.

Today, rare coins are considered sound investments and in fact have been featured numerous times in the Wall Street Journal, Barron's, Money Magazine, on CNBC, and numerous other financial publications. Investment professionals from Harry Browne to independent financial planners have recommended some portion of one's investment portfolio to contain precious metals and rare gold and silver coins. Some suggest as much as 25% of one's overall wealth be placed in a position of rare coins and precious metals. In other words, rare coins have been no secret to those "in the know".

Informed investors have long considered coins not only as a means for capital appreciation, but also as a way to secure long term retirement goals, establish a confidential low key way of protecting their own investment assets to balance out the fluctuations in dollar related portions of their holdings and to enjoy owning something they have learned that over time, would stay in demand, hence providing safety as well as possibly spotting and owing certain rare coins that have been for the most part undervalued, and subsequently realizing a higher demand thereby showing great profits when sold down the road.

Investing in rare coins up till the new wave of fresh investment dollars coming into the industry recently, was considered a long-term investment. Frankly, the investor should consider this approach as a means to a more diversified portfolio. Too often in the past, unskilled investors equated portfolios with stocks and bonds. However as seasoned investors have seen and as the modern portfolio theory has suggested, one should strongly consider investing in assets that can have a counter effect to the dollar and most other dollar related (and reported) securities. This approach "spreads out" one's portfolio and reduces risk. Take for example one who purchased gold, silver, rare coins and other forms of hard assets using this approach as well as a means to hedge against weakening trends in currency and securities markets. Even if the dollar related securities portion of the portfolio didn't perform well, the overall portfolio generally reacted favorably due to this diversification.

We at U.S. Rare Coin Investments have been involved in the research, trading and financial aspects of rare coins and gold and silver, precious metals for decades. We feel that especially now, in today's atmosphere of uncertainty in the global economic climate, as well as changes in the US financial markets with regard to a variety of reasons, from uncertain tax consequences and changes, increasing reliance on foreign manufactured products, the seeming instability and somewhat wild fluctuations in the stock markets as well as what would appear to be a bottoming of interest rates, that today may represent one of the true windows of opportunity for beginning the formation of a rare coin investment portfolio, as well as the recommendations to those who are already involved and have a position in rare coins to take a more aggressive posture.

Those who have coins, whether purchased or inherited should seek out expert advice now, and formulate an intelligent financial plan in which to capitalize on these changes in the economic atmosphere, thereby securing a more profitable and secure future in their own lives and the well being of their families.

Relationships we have built over many years in the trade, as well as a strong following with collectors and investors which include some of America's most wealthy families gives us the "inner circle edge" when it comes to helping you sell your valuables, or as you begin or evolve into the deeper facets of the rare coin business as many can attest. Our abilities and representation stretches on several continents through personal relationships, affiliations and expert inside representation. Please read more in our services section to see what we can do for you in this wonderful world of rare coins and tangible assets.


Set Building as an Investment Tool

One of the most rewarding investment strategies is building sets of rare coin series. Rare coins have historically done well in both bull and bear markets. Substantial long-term profits have been made by coin collectors because rare coins have shown high rates of appreciation.

Collectors have an advantage because while high profits may not be their primary motivation to obtain rare coins, they are able to limit their scope and concentrate on one area of collecting. If they have a plan that allows them to collect coins with proven rarity in an orderly fashion, they are in a position to reap strong rewards down the road.

Often sets of coins are more liquid than a group of unrelated coins. In many instances, the whole is greater than the sum of its parts. Successful set building is a function of both rarity and condition, which enable the collector/investor to determine his or her comfort level.

Since its inception U.S. Rare Coin Investments has assisted collectors/investors in assembling investment grade sets of rare coins. We continue to offer the following services:

  • We help you to find an area of interest that would make a suitable investment
  • Together we develop a strategy
  • Your goals are transformed into a “want-list”
  • Our expert buyers find the right pieces to meet your needs
  • We contact you as soon as we have located suitable pieces for your collection/investment

We work with you step by step. No coins are sent without your approval in advance. You have total control over your collection/investment by using these services provided by US Rare Coin Investments.

Call Toll Free 1-800-624-1870 for more information.


Collecting and Investing in Sets

Sets of rare coins have long been recognized an excellent storehouse of value and a useful component to an investment portfolio. In addition to having an opportunity to collect valuable and authentic artifacts from the past, rare coin sets can be a method of adding diversification to the precious metals portion of a portfolio. Often the people who start out as collectors become investors, and investors become interested in coins’ histories. Excellent rare coin collections are also excellent investment portfolios.

How to build a set
Sets are comprised of the dates and mintmarks in a series. For example one could assemble a set of gold dollars. It would consist of one piece for each date and mint in the series. Another way to collect is by assembling a Type Set. Such a set would include one example of a certain design in a group of coins. For example one could assemble a Type Set of gold coins. One piece in that set would be a gold dollar; another would be a half eagle, and so on. Of course, there are other strategies. Some enjoy collecting an example of each type by a certain designer or an historical period of time. Others collect coins by die variety. A famous collection consisted of all the die varieties of 1794 Large Cents. Some collect by mintmark. Carson City coins as an area of concentration has been very popular. Some collect the first and last date of a series. There are no rules here, only your interests. Civil War Coins Set

Sets as Collectible
Sets of rare coins should be chosen with care and assembled with the following in mind:

  • Have a strategy which includes acquisition and liquidation
  • Purchase coins over a period of years
  • Be prepared to hold them for the long term
  • When the opportunity presents itself, be prepared to liquidate them

 

Sets as Investments
Coin sets can be a wise choice for maximizing your return on investment. The individual pieces are often less valuable than the collection is as a whole. When assembling a set, choose the best quality coins that will enable you to meet your investment goals. Follow the same steps as a collector in assembling your sets of coins.

How to Start
Call toll free 1-800-624-1870 or Email us for more information on recommended sets of rare coins.

Introduction to Coin Collecting
In the 1500’s among the interests of wealthy Europeans was coin collecting. They were interested in Ancient coins for their rarity and historical value. Coin collecting became a prestigious hobby. By the end of the century coin collecting became popular among the nobility. During this time the first coin catalog was written, and the first coin auction took place in Holland.

Since then rare coin collecting has become extremely popular. Politicians, entertainers, and ordinary people have been and are enthusiastic collectors. Today worldwide there are perhaps 50 million coin collectors. In the U.S there are 7 to 10 million. As a hobby, coin collecting is wide spread and diverse.

Great museums of the world are places where some famous collections are found. These include the Metropolitan Museum of Art, the Smithsonian Institution, and great museums in the major capitals of the world.

The range of collecting is enormous. One can collect anything from Ancient coins to a modern mint’s products. There are no rights or wrongs as to what to collect. The choice is with the individual.

How is a coin’s value determined?
Value is determined by the marketplace. Condition, demand, and rarity are the three factors that act in combination to allow the value to be established.

Condition
Most United States coins were issued for and saw circulation. Many were mistreated or just used in commerce, making them undesirable for numismatic value. A few exceptions are colonial coins; early coppers, which are half-cents and large cents; early silver and rare gold coins. These are for the most part unobtainable in uncirculated condition at any price. However, the Almost Uncirculated grades of AU50 to AU58 are possible for many of these issues.

Mint state and proof coins are two different categories. The former consists of pieces that were manufactured for circulation that never were circulated. They are rated in 11 grades from MS60 to MS70. These measures of a coin’s state of preservation often depend on very small differences from one grade to another. Proof coins were not meant to circulate. They were specially struck on specially polished planchets and received careful handling. Many, especially modern proofs, were made for the collector market.

The appeal of a coin is determined by a number of factors including its design, color, strike, luster, and the absence of wear or distracting marks. All of these affect the coin’s beauty and can attract investors and collectors increasing the demand for the set in which the coin is found.

Demand
The demand for a particular issue comes from collectors who want or need the coin to complete a set. It also comes from investors who want to sell their coins at the appropriate time to make a profit. Various factors influence demand. These include provenance, historical significance, and prior market success.

Rarity
Coins are either rare in absolute terms or conditionally rare. A fundamentally rare coin has a low mintage. If fewer than 1000 pieces were minted, no more than that number of collectors can own the issue making it fundamentally rare. Other coins have large mintages, but are rare in higher conditions. Perhaps they were not saved when issued or they were poorly struck and wore quickly. Because scarcer issues are more desirable, they are more difficult to obtain and their prices are higher than common coins.

Call Toll Free 1-800-624-1870 for more information or Email

 

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