Investing in rare coins sold at your local precious metal dealer is a great way to preserve your wealth. Rare coins do not have the same risk as many other investments, but only if you know how and when to buy rare coins. Here are some tips for investing in rare coins to help get you started.
The Benefits of Investing in Rare Coins
Paper currencies such as the U.S. dollar are vulnerable to devaluation, political unrest, and a number of other circumstances that can affect its value. The public is still relatively unfamiliar with the rare coin market, which as an investor gives you privacy and beneficial tax considerations. And unlike the gold market, the rare coin market provides diversification, which provides more protection from financial loss.
Rarity and Demand
Rarity is not as important as demand. A coin may be very rare, but if there is no demand for the coin, it is of little value. In fact, some of the best investments at your local coin dealer are relatively popular coins that are in high demand.
Grade and Value
Before buying an investment coin from a coin dealer, make sure it is certified by the Professional Coin Grading Service (PCGS), the leading grading service in the rare coin industry. PCGS-certified coins have a higher value in the global marketplace. Rare coins are also graded on the Sheldon Scale from MS1 to MS70, with higher numbers signifying rarity and favorable condition. Investment coins usually fall between MS63 and MS67.
Price History and Market Cycles
Before buying a rare coin, watch its price history, because this will give you a great way to judge both present and future price. In addition, look at the market cycle to determine when the best time is to buy and sell.
California Numismatic Investments is a coin dealer with 33 years of experience in precious metals, rare coins, and more. We are PCGS authorized and have an A+ rating from the Better Business Bureau. To learn more about us and our precious metal investment opportunities, visit our website or call us at (800) 225-7531.