Most individuals consider coins merely to be small utilitarian objects needed for the purchase of
goods and
services. Some may even find them to be a nuisance that weighs down their pockets and clutters
their kitchen
counters and desk drawers. Very early on, however, I learned that coins are much more than a
disk of metal
stamped with a monetary value. I discovered that they possess history, artistry, beauty,
romance, and at
times great rarity and value—a value determined not by the numbers struck into their surface,
but by their
worth to a dedicated and knowledgeable group of collectors.
I myself am a collector first and foremost, but soon after I began acquiring rare coins I realized I
would be
amiss if I neglected the powerful investment potential of my numismatic collection. That rare coins
are
top-performing investments is by no means a secret; for decades, informed investors have enjoyed
great returns
on well-designed numismatic portfolios that, on average, are superior to those of stocks, bonds, and
other
traditional forms of investment. Today, I wish to share more than two decades of my own numismatic
investing
insights in the hopes that you too will add these historic treasures to your investment portfolio.
To the new investor―I look forward to advancing your knowledge, sharing your passion, and building
your
collection. As you embark upon this exciting journey, you will invariably be rewarded in many ways
not yet
known to you. For you must remember that you are not only an investor seeking to produce a profit,
but that by
virtue of your position you are also a custodian of numismatic antiquity—and in this position you
are charged
with the meritorious task of preserving these national relics in order to permit their appreciation
and study
by future centuries of numismatists. Those who treat rare coins and banknotes with the consideration
and
respect they deserve will profit in many ways, not the least of which can be a sound financial
return on your
investment of time and money.
REASONS TO INVEST IN RARE COINS
Investing in rare coins can be a highly profitable enterprise for anyone who approaches the task
armed with
the right attitude and background knowledge about this exciting field. This website is designed to
get you
started right away by providing you with the latter. The best advice given to anyone considering
investing in
rare coins is to use common sense. No sensible person would consider buying a diamond necklace from
a street
vendor, or an art masterpiece at a yard sale. Coins are no different, and the more careful you are
in
selecting a qualified dealer and making an educated evaluation of the coins you purchase, the
greater will be
your chance for a profitable investment. You have already made an important step in the right
direction by
choosing Olevian Numismatic Rarities of Pittsburgh as your supplier of numismatic investment
products. ONR is
committed to helping you make educated decisions when building, maintaining, and liquidating your
numismatic
portfolio.
The opportunities for successful investing in quality numismatic items are as great today as at any
time in
the past. Inexperienced buyers can now easily purchase coins that have already been graded and
authenticated
by third-party services to assure their quality, without having to interpret complex grading
standards
themselves. Furthermore, the fact that rare coins make sound investments is no secret. The
impressive
performance of rare coins has been featured numerous times in the Wall Street Journal, Barron’s,
Money
Magazine, and other reputable financial publications. The following section elaborates on the
specific reasons
why rare coins make superior investments.
STRATEGIES FOR INVESTING IN RARE COINS
Think like a collector
Anyone who thinks they are “just an investor” and therefore need not look to pure collectors for
advice has
made a fundamentally important mistake and is less likely to attain the highest profits on their
investments.
Sure, not every investor needs to immerse themselves in the history and artistry of their portfolio,
as
producing a profit can certainly be the primary motive behind buying and selling coins. At the very
least,
however, an investor must learn to think like a collector when choosing pieces for their portfolio.
This is
because collectors represent the most knowledgeable clients acquiring coins. They frequently acquire
specimens
in a highly systematic fashion, selecting historically important coins that are in great demand and
of the
highest possible conditions they can afford. Coin collecting itself is as much of an investment
strategy as it
is a hobby, and for this reason collectors enjoy the greatest investment returns. Since we work
closely with
collectors every day, we can offer this important perspective when assisting you in the selection of
coins for
your investment portfolio. One great approach is to build specific “sets” of coins, which is
described in more
detail the next section.
There are a multitude of approaches to assembling a thoughtful rare coin portfolio, but a full
discussion of
numismatic investment strategies is beyond the scope of this text. Rather, this section will
highlight some
basic principles that will have you building an impressive portfolio in no time.
“The science of coins and medals is as old as antiquity itself. There is probably no other
branch of
collecting so ancient and honorable, or that has received the attention of the students of
all ages, as
that of coin collecting. If there are “sermons in stones,” then what eloquence and learning
must be stored
up in these bits of metal? If they could only talk, what strange stories would they tell?”
―George F. Heath, M.D.. November, 1889
Throughout history, rare coin collections have produced substantial long-term profits for
their owners.
Many investors today are finding stock market performance to be too volatile, and at times,
downright
depressing. Diversification into other investments like rare coins may be the answer.
Carefully selected
rarities offer the savvy investor a tangible asset that typically maintains or significantly
increases its
value over time, no matter what the conditions are on Wall Street. Not only do coins
increase in value,
they increase in value faster than stocks. One important rare coin index called the PCGS3000
Key Dates and
Rarities Index, similar in concept to other indices like the DJIA, has increased 2,700%
since its
inception in 1971, from 1000 points to 26,000 points– a gain of 14% compound interest per
year. This
outperforms the Dow over the same period of time by about 2% per year. Best of all, selected
segments of
the coin market have perform dramatically better in the same time period, and Olevian
Numismatic Rarities
will help you select these top performing coin investments for your portfolio.
For decades, knowledgeable investors have considered rare coins not only as a means for
capital
appreciation, but also as a way to secure long-term retirement goals and establish a
confidential way of
protecting their financial assets. Perhaps especially now, in an atmosphere of global
economic
uncertainty, changing U.S. financial policies, uncertain tax consequences, volatile stock
market
conditions, and near-zero interest rates, today may represent a true window of opportunity
for starting a
rare coin investment portfolio. And for those who have already invested in rare coins, now
may be the time
to take a more aggressive position.
The demand for rare coins considerably exceeds their supply. By definition, there are
relatively few
rarecoins in existence. Since the U.S. Mint no longer produces these treasures, there is a
finite supply
that must be distributed amongst collectors and investors wishing to acquire a specimen.
Some coins are
truly unique, with only 1 example known to exist. For instance, only a single 1907 Indian
Head gold double
eagle pattern coin was ever struck, which now resides in the hands of a prominent East Coast
collector.
Its current market value is estimated to be over $10,000,000.
1893-S PCGS MS-65 Morgan Dollar
Of course, there are many less extreme examples that are more accessible to the average
investor,
including the 1893-S Morgan dollar. Mintage figures for Morgan dollars were typically over a
million each
year, but records suggest that only 77,000 1893-S dollars were produced. Furthermore, most
of these were
later known to be melted and less than 10,000 are estimated to exist in all grades today. Of
these, only a
couple hundred are in Mint State grades. Prices range from around $1,500 in heavily
circulated grades, to
over $1,000,000 for the finest known Mint State-67 example. Given that Morgan dollars are
singularly one
of the most widely collected coin series, there are more individuals seeking to acquire an
1893-S for
their collection than there are coins to go around. As the number of numismatic collectors
and investors
rises against the setting of a fixed quantity of these coins, their value is expected to
rise
exponentially. There are thousands of other coin examples in which demand exceeds their
supply, affording
the investor a diverse array of potentially profitable investment options. If anything, the
supply of are
rare coins is actually decreasing as improperly handled specimens become damaged, and poorly
housed
collections gradually succumb to environmental threats like heat, humidity, and oxidation
from air
exposure. Olevian Numismatic Rarities deals almost exclusively in certified rare coins in
air-tight
holders, essentially eliminating the risk of environmental deterioration.
Although there is currently great demand for rare coins, some investors ask whether that
demand is likely
to be present 20 years from now. Fortunately, the viability of the future numismatic market
looks strong.
As the U.S. population grows, more and more people begin collecting and investing in coins
every day—and
they are competing for a static (or perhaps dwindling) supply of rarities. Highly successful
modern coin
programs instituted by the United States Mint have been instrumental in capturing the
interest of new
collectors. The 50 State Quarters Program of 1999-2008 has indoctrinated a new generation of
collectors,
many of which began collecting state quarters as young children and adolescents. The State
Quarters
Program alone is credited with drawing tens of thousands of new collectors to the market in
the past
decade. Although some people have invariably just saved a few quarters from their pocket
change and
stopped there, many others have inadvertently fallen in love with coin collecting. And it’s
easy to
do—just buy a few interesting coins and see for yourself! Once these enthusiasts completed
their State
Quarter collection, they set out to acquire the older Washington quarter dates, which go as
far back as
1932. Before they knew it, they were buying certified mint-state 1892 Barber quarters—and
the rest is
history. In short, the demand for rare U.S. coins is not expected to go away anytime soon.
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. Olevian Numismatic Rarities
belongs to an
extensive network of multi-specialty dealers and private clients and is therefore capable of
liquidating
your assets in time frames commensurate with top industry standards. Furthermore, gold,
silver, and
platinum bullion coins, as well as bullion bars, can be sold immediately during daily market
hours. (See
the section on precious metals for popular investment options). Therefore, the typical
numismatic
portfolio can quickly be converted to cash when needed. Since certified coins sell faster
than uncertified
coins, ONR deals almost exclusively in certified coins to enhance the liquidity of your
assets.
Compared to other collectibles such as rare oil paintings, or investments like real estate,
many rare
U.S. coins are very affordable. Despite their record of consistent price gains and the
multi-million
dollar collections often sold at auctions, rare coin portfolios with outstanding track
records and
promising futures are available in a wide range of investment levels. Quality coins with
strong investment
potential can be purchased for as little as one hundred dollars or less. At the same time,
there are more
than enough six and seven-figure specimens to keep even the investor with the deepest
pockets very busy.
Olevian Numismatic Rarities will tailor your portfolio to your individual financial
situation.
“My wish is that my drawings, my prints, my curiosities, my books—in a word,
those things of art
which have been the joy of my life—shall not be consigned to the cold tomb of a
museum, and
subjected to the stupid glance of the careless passer-by; but I require that
they shall all be
dispersed under the hammer of the auctioneer, so that the pleasure which the
acquiring of each one
of them has given me shall be given again, in each case, to some inheritor of my
own tastes.”
―Edmond de Goncourt, 1896
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.
You can carry a rare coin worth $400,000 in your pocket without anyone else knowing. No one
will know what
your numismatic portfolio is worth, or that it even exists in the first place. Olevian
Numismatic Rarities
maintains strict confidentially with all clients and our experts are always available to
privately discuss
your investments.
All investment professionals agree that an investment portfolio should be diversified. Many
financial
advisors recommend that investors place 20-30% of their discretionary funds in tangible
assets to achieve
a properly diversified portfolio. Rare U.S. coins stand out as the ultimate portfolio
diversifier. For
one, they have proven to be an excellent hedge against the effects of inflation. Although
renowned for
their performance in periods of high inflation, rare U.S. coins have generated strong
long-term price
gains in virtually every period of economic growth over the past thirty years. They can also
be very
useful in reducing the overall volatility of your investments because they tend to perform
well when more
traditional investment vehicles are performing poorly. Thus, the diversity afforded by
adding rare coins
to any preexisting investment portfolio can provide investors with security and peace of
mind.
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. Throughout our nation’s history, coins
have
spotlighted our national heroes, paid tribute to our great achievements, and commemorated
significant
events. These truly historic works of art honor past sacrifices made in the name of freedom.
Rare coins
acquaint investors with historical figures and events, no matter how far removed by time.
The satisfaction
of actually owning a piece of history from a bygone era makes investing in rare U.S. coins
truly unique.
Each coin has traveled a different path through history, and as a result, each is a distinct
embodiment of
the hopes and dreams of our founding fathers. This is undoubtedly something that a monthly
statement from
your bank account can never offer. ONR encourages you to hold an old coin in your hand and
allow it to
tell its story. You may be quite surprised by what you learn.
SET BUILDING IS AN EXCELLENT APPROACH TO INVESTING
Coin Sets Explained
There are many fun and profitable ways to collect coins, but if there was ever one strategy that has
proven to
be both academically and financially rewarding over the years it was set building. A coin set is a
collection of
coins that are related in one way or another. While there are a number of ways to build sets, the two
basic set
forms are “type” and “series” sets. A type set is made up of all those coins sharing a specific
characteristic
such as design, designer, year, historical period, or denomination. An example of a small type set is
the 1950
year set, which includes a cent, nickel, dime, quarter, and half dollar minted in the year 1950. A
“series” set
consists of one coin from each date and mint of a particular coin series, such as a set of Morgan
dollars
containing one coin from every year and mint they were produced (1878-1921).
Hundreds of Interesting Sets Exist
There is virtually an endless variety of interesting and investment-worthy sets available to collectors
and
investors of all personal tastes and price levels. Indeed, an impressive coin set can be assembled on
every
investor’s budget. Some sets tend to be more appropriate for investors than others and Olevian
Numismatic
Rarities can make specific recommendations in this area. The following is a partial list of some great
sets that
make excellent numismatic investment portfolios:
Period Sets:
Include one example of each coin type minted during a specific time period.
Examples:
18th century, 19th century, 20th century, and 21st century. Each of these can be with
circulation
strikes, proof strikes, and include or exclude gold coins.
Mint Sets:
Include one example of each coin type struck by one of the U.S. Mints during the period
of
their
operation.
Examples:
Philadelphia, Denver, San Francisco, West Point, Carson City, New Orleans, Charlotte,
and
Dahlonega.
Denomination Sets:
Include one example of each coin type of a particular denominationPeriod Sets:
Include
one example of each coin type minted during a specific time period.
Examples:
1/2 cent, 1 cent, 2 cent, 3 cent, 5 cent, 10 cent, 20 cent, 25 cent, 50 cent, 1 dollar,
2.5
dollar, 5 dollar, 10 dollar, and 20 dollar.
Design Sets:
Include one example of each coin type sharing the same obverse or reverse design.
Examples:
Flowing hair, draped bust, capped bust, seated liberty, barber, gold liberty head.
Coin Series:
Include one specimen of every date and mintmark of a particular coin series.
Examples:
Indian head cents, Buffalo nickels, Mercury dimes, Barber quarters, Walking Liberty dollars,
Morgan dollars, Indian head $2.50 gold pieces, Liberty head $10 gold pieces, Saint Gaudens
$20 gold
pieces,and over one hundred other U.S. coin series.
Many Sets Offer Diversity
All investors know that diversification is the key to assembling a stable financial portfolio. A
numismatic
portfolio is no different. In the realm of coins, diversification is achieved by investing in coins
of
different years, mints, conditions, types, denominations, metal contents, and so on. Many classic
numismatic
sets are inherently diverse in their composition. Good examples of sets with built-in diversity
include the
18th, 19th, and 20th Century Type Sets. Each of these spans a significant period of United States
coinage and
include dozens of coin types across every domination and metal type. We shall use the 20th Century
Type set as
an illustrative example.
A Closer Look at the 20th Century Type Set
One great set that is beloved to investors and collectors alike is the 20th Century Type Set, which
contains
one of each coin type minted from 1900-1999. There are several subclasses of this set, but one
popular version
of the 20th Century Type Set requires a total of 39 different coins, excluding the gold issues.
Specifically,
this set requires examples of Indian Head cents, Lincoln cents, Liberty Head nickels, Buffalo
Nickels,
Jefferson Nickels, Barber dimes, Mercury dimes, Roosevelt dimes, Barber quarters, Standing Liberty
quarters,
Washington quarters, Barber half dollars, Walking Liberty half dollars, Franklin half dollars,
Kennedy half
dollars, Morgan dollars, Peace dollars, Eisenhower dollars, and Susan B. Anthony dollars. Adhering
to strict
numismatic criteria requires that this set include 39 different examples even though it includes
only 19 coin
series. Thus, the set will have up to 5 examples of certain coin series. This is because minor
design or
composition changes were introduced to these coins during the period they were issued that count as
distinct
“types.” For instance, the reverse design of the Washington quarter, Kennedy half dollar, and
Eisenhower
dollar were changed in 1976 to commemorate the U.S. Bicentennial. A true 20th century type set
therefore
requires a 1976 example of these coins, in addition to one example representing the reverse design
of the
other years of issue.
“If one means to become a collector, and not merely a possessor, it is wisest to choose
perhaps a
somewhat limited field… It is in the possession of some special line, after all, that
the real joy
lies…The average dealer in numismatics has a hotchpotch of unrelated specimens on tap.
The collector
does not want his collection to be like that unless he be the proprietor of a town
museum. The average
collector should choose some special line in numismatics and follow the same
consistently, seeking for
the finest examples in season and out. A collection is desirable when it means
something… There is a
charm and beauty in it when it is chosen with good judgment, which the devotee can never
adequately
express nor the Philistine ever understand.”
―Waldo C. Moore. December, 1918.
This set can also be paired with the 20th Century Gold Type Set, which requires 13 gold coins minted
from
1900-1933 across 2.5, 5, 10, and 20 dollar denominations. Assembling a full 52-coin 20th Century
Type Set with
Gold and Non-Gold Issues can be a satisfying experience, not to mention something that leaves you
with an
outstanding investment portfolio containing a diversity of rare coins that have enjoyed decades of
great
financial returns. Depending on the date and condition of the individual coins you choose to
include, the 20th
Century Type set, excluding gold issues, can cost anywhere from several hundred dollars to over
$1,000,000.
Investors at every price level can enjoy owning a 20th Century Type Set as part of their investment
portfolio.
Another excellent set is the 19th Century Type Set, which requires 88 different coins including gold
issues.
This can be a significantly more expensive set, however, given the rarity of some of its coins.
There are hundreds of great sets to choose from and Olevian Numismatic Rarities will help you build
an
investment set that takes into account your specific tastes, price level, and investment goals.
Please see our
“Current Products” page for quality examples of many of the pieces mentioned here.
Sets Afford Greater Liquidity
A well-designed coin set is often worth more than the sum of its parts. This is because fine coin
sets are
considered great accomplishments and are highly prized by collectors. Therefore, completing a set
might give
you an immediate return on your investment, without waiting for an actual increase in market value
of your
coins! Such sets are also often more liquid than the accumulation of unrelated coins.
Set Building is Fun
When you choose coin sets for their historical significance or their beauty and artistry, coin
investing can
be a very enjoyable endeavor. Best of all, sets assembled in this fashion tend to be the most
popular amongst
collectors, increasing the likelihood of great returns on your investment. One great way to have fun
with your
collection is to start a “set registry” with PCGS, a leading coin certification service. PCGS Set
Registry
gives the owners of PCGS-graded coins a chance to display their collection in a secure online
environment and
compare them to the collections of other collectors and investors. Awards are given each year for
the finest
sets in each category, and owners of high ranking sets are offered incentives such as free
submissions to PCGS
for coin certification.
Showcasing your collection online is not the only way to enjoy your prized rarities. A set of fine
gold and
silver rare coins on display in your home is also a great way to impress your guests. Several
display options
are available for exhibiting your rare coins, just as there are for fine paintings, sculptures, and
objet-d’art. Ask Olevian Numismatic Rarities for great ideas about how to present your collection in
your
home. Even if the financial return is all you are after right now, chances are you will find
collecting and
investing in coins to be rewarding in many other ways, not the least of which is an exciting and
satisfying
way to spend your free time.
Consider Choosing Key Dates for Your Portfolio
Whether you choose to build a coin set or not, you should consider selecting coins that are “key
dates” for
your portfolio whenever possible. A key date refers to a particular date and mintmark combination of
a given
coin series that is harder to obtain than other dates of the same series because fewer examples are
known to
exist. Key dates are generally considered the most important coins in a series and are the most
expensive to
purchase. Key dates are always in great demand because every collector needs the key date to
complete their
collection. The combination of limited supply and high demand causes key dates to appreciate in
value at
faster rates than other coins in the same series. For this reason, Olevian Numismatic Rarities
considers key
dates the ultimate coins for investors. There are key dates in essentially every coin series, so
investors are
not likely to get bored anytime soon. Popular key dates include the 1909-S VDB Lincoln cent, 1916-D
Mercury
dime, 1932-D Washington quarter, 1893-S Morgan dollar, 1921 high relief Peace dollar, and the 1907
Roman
numeral Saint Gaudens gold double eagle.
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