Yes. If history is any indicator, which it generally is, rare coins do appreciate or hold in value through the years. As someone who is strongly considering purchasing rare coins, there are factors to assess that help you determine the value of your investment:
Coin rarity, beauty, and history
Is it collectible?
Precious metal value
The value of a rare coin is graded upon its numismatic value and its intrinsic value. A coin's numismatic value, in essence, is its market value graded upon its rarity, beauty, and history as valued and sought by an investor or collector.
A perfect example of a rare coin containing all three attributes is a U.S. silver dollar minted in 1834 or 1835, though, dated 1804. Known as, "The King of American Coins," it sold at auction for nearly $3.9 million dollars.
"It was intended to be given as a diplomatic gift on behalf of President Andrew Jackson," said Greg Rohan, President of Heritage Auctions. "It's one of only eight of its kind known..."
The intrinsic value of rare coins is the spot value of the type and amount of precious metals they are made from. For example, a rare coin made from one ounce of gold or silver will, at a minimum, be worth just that. In this regard, rare gold and silver coins are universal currency -- a liquid asset.
You should only buy rare coins and precious metals from an established and reputable dealer, like U.S. Coins and Jewelry. In addition to being a licensed precious metals dealer with the State of Texas, we offer:
State-certified calibrated scales
A+ rating with the Better Business Bureau
National numismatic-industry leader for 30+ years
Integrity and value-based reputation.
When you buy rare coins or precious metals at the flea market or through an independent seller, you really can't be certain what you are getting or what you're getting in to. Many counterfeit articles being sold as genuine tend to be found in flea markets, from private sellers, or other unregulated venues.
We have on-site the latest technology to comprehensively assess any numismatic coin or article, or precious metal for purity, weight, and authenticity. Further, we have an extremely secure brick-and-mortar location where you can feel safe and be safe conducting transactions -- something you are not likely to get in an open venue or with a private seller.
We are an industry market-maker and leader with more than 30 years of experience in buying and selling of numismatic coins and articles and precious metals. This allows us to work on much smaller margins compared to other numismatic and precious metals dealers.
"This place [U.S. Coins and Jewelry] was super helpful! They were honest with pricing and extremely knowledgeable of all the random stuff I brought into the store," -Eric R. of Houston.
We have a huge selection. We are always buying and our inventory constantly changes. Our staff is very helpful -- not pushy. At U.S. Coins & Jewelry, our reputation speaks for itself!
"If you want to buy or sell coins in the Houston area, this is the place. I had a very pleasant experience there. I got a fair price for my coins, and I'm always treated great. These guys are very knowledgeable, friendly and helpful," -James P. of Sugar Land.
Further, to ensure you are getting the best deal possible, we offer a competitive buyback program on our top-tier numismatic coins.
ARE RARE COINS A GOOD INVESTMENT
September 15, 2016
Collecting Rare Coins
Collecting rare coins is a fascinating hobby that can pay dividends! The key to success is working with a reputable dealer when building your collection. They can help you to find and purchase the specific coins you are looking for and many offer a “wish list” service. If you have the skills, and understand how to grade and value coins, raw or uncertified coins offer a great opportunity for the astute buyer.
If you’re new to the hobby buying “slabbed” or third party graded coins is a safe way to build your collection. Companies like PCGS, NGC and ANACS professionally determine the coin’s grade or condition and then encapsulate the coins in airtight, clear plastic holders. Graded coins are guaranteed to be authentic and because a grade has been determined they are easy to research and value online and can also be sold quickly and easily for a fair price.
August 19, 2016
Collecting Proof Coins: The Rarest of the Rare Coins!
If you’ve been collecting coins for a while and are looking for a historic and exciting addition to your collection, consider mid-grade proof type coinage. Proof coins are produced using special highly polished planchets and struck using polished dies, slowly and at high pressure creating beautiful, detailed strikes.
Earlier series such as proof Indian head cents, three cent nickels, liberty and shield nickels are very affordable in the mid-grades. Proof coins were struck expressly for collectors and are beautiful examples of the variety. Because they were produced in limited runs, often in the low thousands as opposed to the millions of business strikes, they have a built in rarity with some examples having only hundreds of pieces surviving.
Proof coins are best purchased as “third-party graded” examples. PCGS and NGC coins are guaranteed as to the authenticity of the coin and it is sometimes difficult to determine raw proof coins. Buying third party graded offers you some insurance.
Of course some proof coins can run into the tens of thousands of dollars, but there are many different series in the PF63, PF64 and PF 65 grades available that can be purchased for only a few hundred dollars.
Proof coins add an interesting element to your collection and offer even novice collectors the ability to add rare, historic, and beautiful coins to their collections!
Collecting and investing in rare coins is a fun hobby that offers the chance for financial gain. Many collectors enjoy the history, beauty and challenge of coin collecting. As you mature in the hobby, you may find yourself seeking higher grade, or rare date coins to fill your collection. This is where the fun begins!
If you are working with a reputable dealer, you can provide them with a list of rare coins you are seeking to build your collection with. Today, there are many other options for building your collection like coin auctions both on and offline, coin shows, pawn shops, some jewelry stores and many more. It’s always safest to purchase coins that have been third party graded by companies like PCGS, NGC, and ANACS. Graded coins are guaranteed authentic, and because they are graded, researching price is fairly easy online.
If you have the skill and the eye, you can also find many opportunities to purchase raw coins (un-graded/un-slabbed). If you have a grasp of grade, rarity, and varieties in a particular series like Morgan Dollars, you can often score great deals by purchasing coins raw!
Rare coins are highly collectible for their beauty, history, and value. Certain particularly rare coins can be considered an investment. Investing in rare coins requires tremendous knowledge of individual issues and their population as well as a deep understanding of a relatively complex market. Collectible coins are valued based upon their rarity and condition, unlike bullion coins which are priced based on their weight. Series like Morgan silver dollars or Seated Liberty quarters, for example, fall in and out of favor with collectors. As a result, prices can swing widely, making them somewhat risky as purely an investment vehicle.
Third party grading companies such as PCGS and NGC have worked to standardize grading and stabilize prices. Third party graded coins trade much like stocks with prices tracked and set-up with bid/ ask spreads, much like penny stocks on the pink sheets.
Collecting rare coins is a wonderful hobby and some coins can significantly appreciate in value over time. If you appreciate the art, beauty and history of rare coins, consider becoming a collector. Investing in rare coins is complicated, can be expensive and is best left to the experts.
Rare coins are not a “traditional investment” like stocks, bonds, or CDs. Many serious collectors regard their collections as investments similar to antiques, fine art and rare wine.
Experts say the single best investment you can make in any collection is time. Over time, rare coins can appreciate in value, but many factors can affect the price such as demand, popularity of a series and rarity. To be a successful collector/investor in rare coins requires tremendous knowledge. There are many pitfalls to the hobby including counterfeits, doctored coins, false claims of rarity and theft.
Success as a collector of rare coins requires a love of the hobby. You should be truly fascinated by their history and value them as art you can hold in your hand. You’ll need to spend countless hours looking at and studying them to accurately assess their authenticity and value. Read books, browse the web, and review auction histories to determine the market.
One key to getting a solid return is to specialize in series that are popular with collectors such as Indian head cents, Morgan dollars, and St. Gaudens gold pieces to name just a few. These series have a solid collector base so there is always demand, although because of that demand, bargains may be hard to come by.
Companies like PCGS and NGC have somewhat standardized the buying process by offering certified authentic, graded coins and establishing census counts of these coins by grade. Investing through a reputable, knowledgeable dealer can also help you build a solid collection.