Okay, let's get something straight... I do not advocate the purchase of United States coins strictly for investment purposes. Like most traditional collectors, I believe coins are to be primarily appreciated for their artistic beauty, historical connections, and the joy of pursuing them. However, it should be no secret that a significant number of us do add to our numismatic holdings while simultaneously peeking at the payback angle, too.
In truth, there are probably substantial numbers of traditional collectors who prefer to acquire coins destined to increase in esteem and value over time; treasured heirlooms and a source of pride to be passed from one generation to the next. On the flip side of this equation, it seems implausible that anyone would buy a coin with the hope or expectation to see it stagnate or decrease in value. Indeed, any commentator who suggests the words "investment" and "coins" should never appear in close proximity to one another is ignoring a heavily populated segment of our hobby.
Now that we've established that it's not numismatic heresy to seek coins with strong upside possibilities, let's get down to basics. The guiding principle is simple: Any coin that has demonstrated solid, consistent gains over a long period of time is likely to show continued growth in the years ahead. Easily said, but as we shall soon see, not so easily put into practice.
So exactly how does a one identify coins with a potentially bullish future? The best clues are revealed by analyzing the retail value trends over a long period of time for a given coin. Observing current prices alone does not yield enough information to correctly evaluate prospective price movements. What was the coin selling for two or three years ago compared to today? Dig deeper, and find the market price for the same coin 5-10 years ago. While you're at it, get something from 20-30 years or more in the past, too. The more good data researched, the more reliable will be your final conclusions. Now whip out your spreadsheet and chart the numbers, or compute annualized rates of return. Flat or negative trends are bad. Positive trends are good. Steep positive trends are best. Any coin displaying a proven annualized growth pattern of at least 5-10% over a span of many years qualifies as an attractive option for the collector desiring coins headed for much higher price levels a few years down the road.
During the course of my lengthy numismatic career, I've researched the long term value trends of most collectible US coins. Thanks to my trusty computer, I've calculated annualized compounded percentage return rates and honed in on a handful of coins that have consistently beaten the overall coin market averages. Unfortunately, the blue-chippers are scarcely encountered. Perhaps it is this fact that explains why so many well-intentioned hobby purists scorn the idea of blending coin collecting with the profit motive.
Individuals whose objective is to satisfy their numismatic pleasure by assembling a collection certain to be the envy of tomorrow's collectors must do their homework today. Remember to research historic value trends and evaluate growth potential based on previous performance. One last word of advice... never loose sight of the fact that you are handling artifacts of America's past, and that all of us are merely their temporary custodians. Respect these coins and the history they represent, and you'll always discover new avenues of adventure not found in most other investment opportunities.
Daniel J. Goevert is the webmaster of US Coin Values Advisor (http://www.us-coin-values-advisor.com), specializing in coin value trends and listing bullish US coins. Other offerings include detailed coin collecting advice plus an illustrated history of the United States and the US Mint.
Rare Gold Coins Return 39.4 Percent on Investment, But Timing Is Everything, Reports a New Online Service
GPA for Coins reports that the certified coin market has shown overall strong growth in 2007, but median prices are where they were in the first quarter of 2006. However, the total gold coin segment has shown strong median prices steadily increasing to give a return of almost 40 percent for those who purchased in the first half of 2005.
The Growing World of Custom Challenge Coins
When someone hears or reads the term "challenge coin" a clear picture can't be formed because the term isn't quite clear, most people think and assume that a coin is just a coin. These special type of coin has a sentimental or historic value which can't be given to just any other object, they can be put on display to symbolize our connection to a particular event, they can also be worn as a necklace, be embedded in key chains, paperweights and even coffee mugs.
Invest In Rare Coins For Profit
Buy Low and sell High This is easier said than done. What happens is collectors and investors wait till the market is moving up and then decide to buy at high prices. We all like a sale but why do we not buy gold and silver coins when the price is low? For the past 10 years coins have been on sale but not many have continued to buy rare coins to add to their portfolios.
Coin Collection ? The Art Of Numismatics
The first known coin collector was Petrarch, who lived way back in the 15th century. A century later, Hubert Goltz visited a number of coin collectors throughout Europe and estimated that were approximately 960 collections in total. Numismatics gradually became a favorite hobby of royalty. Francis I of Austria wrote about his collection of gold coins in 1756. The British Museum established one of the first coin catalogues. From this have emerged more than 100 publications devoted to coin collecting.
American Coins ? Which One Should You Collect
Main purpose of this article is to give you an insight on the topic and guide you further into understanding everything related to this subject. If you are interested in American history, as a coin collector there is a great deal of American coins to be found. There is a great amount of information about American coins. Finding this material is probably the best way to understand what types of American coins are good to have in your coin collection.
Challenge Coins - A Special Type of Coins
For your convenience we have published this article in order to let you know of everything related to the Challenge Coins. Enjoy ?
U.S. Gold Coins Out Perform Gold Bullion by As Much As 3-1.
Wholesale rare coin prices show collectors that purchased numismatic gold coins have received a return far in excess of their bullion content, but rarity is the key for investors.
Play Video Poker With 5 Coins
All games of video poker can be played with one to five coins and as a player you have to make that choice. If you want to play with one coin click the coin symbol once, if you want to play with two coins click the coin symbol twice and so on. Some machines have a separate symbol for 5 coins that can be activated by a single click, because all good players always play with five coins.
Why You Need To Buy and Sell Gold Coins (Part 6)
Pre-1933 Gold Outperforms Today's Gold Bullion..
Why You Need To Buy and Sell Gold Coins (Part 1)
The Value of Gold in a Era of Paper Assets, Stocks, Bonds and Mutual Funds..
American Elements to Mint Coins from Rare and Advanced Metals for ETF, Hedge Fund and Private Investor Reserves
Los Angeles based American Elements announced today the launch of AE Bullion?.
Grade Your Coins
To the novice, it might seem like one coin is as good as the next. However, that?s just not the case. To determine value of coins of the same type, grading is performed. Basically, grading is the process that determines the condition?and the value?of the coin being looked at. The grade of a coin can wildly affect its value. Years past, Dr. William Shelby devised the 0-70 scale system for grading coins.
Canadian Coin Prices - Evaluate Your Coins
I trust that you will take a few moments to read this article. If this is the case then lets get started.
Share your Passion for Hammered Coins
Old hammered coins have great historic value and are enjoyed by many people around the world. From the UK to China, there are people who appreciate the cultural insight that they offer and have a collection of their own. Although hammered coin collecting is popular, it is far from mainstream which means that collectors are often unable to discuss their collection with family and friends to the extent that they would like to. That is why many hammered coin collectors can often benefit from meeting like minded people.
Hammered Coins of England is Increasing in Popularity as a Medium and Marketplace for Collectors of Old Hammered Coins
Hammeredcoinsofengland.com -- the website of the company which buys and sells old hammered coins -- is rapidly increasing in traffic as collectors visit their website to read their articles on hammered coins, buy and sell, as well as evaluate and give opinions on coins.