Rare Coin Investment: A Wise Decision

December 21, 2016 3 min read

Rare Coin Investment: A Wise Decision

If you’re considering investing your money in rare coins, all signs point to significant positive performance for the future of this luxury asset. According to the highly reputable Knight Frank Luxury Investment Index (KFLII), which tracks the performance of luxury collectible items, rare coins continue to be a profitable venture for investors. In fact, in his article, “Luxury Auctions Shine” for The Wealth Report, Editor Andrew Shirley explains that KFLII’s 2015 results, pictured below, showed rare coins gaining a substantial 13% in 2015, second only to classic cars, which gained 17%.

A 2016 CNBC report by Nyshka Chandran highlights the results of the 2015 KFLII and echoes the idea that investing in rare coins could be quite advantageous. The report underscores the consistent top performance of rare coins, which seem to unfailingly appreciate in value despite overall economic downturns and recent stagnancy in the raw precious metals market. Chandran notes that the estimated “value of rare coins exchanging hands in the U.S. alone was worth between $4-5 billion” in 2015.

Why Invest in Rare Coins?

1. Rare Coins Demonstrate Top Investment Performance
Rare coins have a solid record of producing long-term profits for their owners and are a great way to diversify an investment portfolio. They are a tangible asset that maintains or increases in value despite changing conditions on Wall Street.

2. The Demand for Rare Coins Exceeds their Supply
While the number of rare coins in existence is a fixed number, the growing population of collectors vying for them is causing their value to continually rise, creating opportunity for significant financial gain. The rare coin market has a strong demand with an increasing number of investors and collectors and looks as though it will only continue to expand.

3. Rare Coins have Great Liquidity
With the advent of the independent coin grading services like PCGS and NGC, rare U.S. coins have become the most liquid collectibles of all. On a typical trading day, thousands of certified rare coins are bought and sold “sight-unseen” on electronic numismatic exchanges, and thousands more are sold directly to collectors and investors at coins shops and public auctions. You can quickly convert your rare coin portfolio into cash if necessary.

4. Rare Coins are Affordable to all Investors
Unlike many investment opportunities, rare coins are very affordable. Although some collections have been sold at auction for millions of dollars, many quality coins with strong investment potential can be purchased for as little as one hundred dollars.

5. Rare Coins are a Private Investment
Rare coins are one of the few remaining investments that can be accumulated privately. Since coins are highly liquid and easily transportable—and because investors can take physical possession of their holdings―coins are attractive to investors who do not care to tell the rest of the world what they own.

6. Rare Coins are a Great Portfolio Diversifier
Diversifying your portfolio is something that all investment professionals suggest, and many financial advisors recommend placing 20-30% of discretionary funds in tangible assets to do so. Rare U.S. coins stand out as the ultimate portfolio diversifier because they are proven to be an excellent hedge against the effects of inflation and have generated strong long-term price gains in virtually every period of economic growth over the past thirty years.

7. Rare Coins have Historic Beauty
At the very least, rare coins are beautiful works of art. U.S. coins are direct links to America’s rich heritage and are as timeless as history itself. For two centuries, U.S. coins have been symbols of American stability and reflections of national pride.

Rely on the Expertise of Olevian Numismatic Rarities.
Whether you are new to rare coin investing and would like additional information, have coins of your own to sell, or are looking for assistance in building your collection, ONR is here to meet all of your numismatic needs. Please call 1-844-ONR-COIN today to schedule your private consultation.