When I think about my coin collection more than a few thoughts come to my mind. Some are the personal accomplishments that I have reached, others the lessons learned along the way, and last but not least the incredible returns that I have had on my collection.
I think that the value of some ones collection truly depends on the individual, and what they are willing to hold or sell. What I mean by this is that I know lot’s of people who have very extensive collections of rare coins, and or lot’s of bullion. Nothing is wrong with this by any means except that coins play similar roles to stocks, and there are lot’s of good times to get in and over the years. Try to strike when the iron is hot on a coin that you hold. Coin collecting is no different than Hollywood a good example of this is toned coins. I can remember a time when no one wanted any thing to do with them, and they would actually sell for melt silver value. They sell now for an extreme premium if a coin holds a lot of rainbow coloring to it. I found this out firsthand when I sold some that I have been holding for years. I truly felt victorious when I took my profits and put them into some coins that I have always wanted to own, and I did this paying literally pennies on the dollar for them. In my opinion this is very good way to put a lot of value into your collection in no time, without having to put a lot in.
I recommend that twenty-five percent of someone’s portfolio consists of rare coins and bullion. Who would have ever thought that a fun hobby could play a major role in your net worth. Crazy huh? Considering the world that we live in, holding precious metals is a good idea. Just think about our weak dollar and how in debt we are, our current financial and real estate problems, war ,inflation. I could go on and on but I think that you get the idea. That’s why I consider myself to be very strong on precious metals. As far as rare coins are concerned, you do the math. What I do is I will go and get a red book from ten years and do a comparison with a current date book, and check the growth for coins that you have in interest in. This will give you a rough guess on the growth for years to come. You will be surprised to see that a lot of coins offer better returns than most peoples core investments. Also with investing in coins on the long term you want to try and own a couple great coins , instead of a lot of OK ones. Check the PCGS population charts and try to target the best coins for the best condition that you can afford them in. You always want to try and buy the absolute highest grade possible because such coins mature in value a lot faster. A great example of this would be to hold out and get an MS-67 over an MS-65, By doing this you will maximize your return a great deal.
This last year has been truly amazing. I watched my coin collection almost tipple in value, gold hit an all time high, and I notice that the rare currency market is starting to strengthen. These are all tell tale signs of what’s to come. I think that now is a better time than ever to start the habit of saving coins and bullion, if you have not already. I hate to say it but I think that things are going to get a lot worse before they get better. Knowing this do the best that you can to protect your assets and diversify accordingly. Whether you are a beginner collector or long time coin bull I hope that you found my article helpful in some way.
Source by Robert Felt
Coin Collection Value
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