Building a Balanced Coin Collecting Investment

As a tangible asset, coins can add diversification to an investment portfolio. They can also provide a hedge against inflation because the value of rare coins has historically been stable, and they don’t take up as much room as art pieces or other collectibles. However, it’s important to remember that investing in rare coins can be risky and requires careful research. This is especially true for new collectors, who should seek out a reputable dealer and mentor to learn the market.

It’s also important for investors to understand the difference between collecting for numismatic value and buying coins primarily for their bullion value. Coins that are produced solely for their bullion value, such as commemorative coins that mark significant events or anniversaries, tend to be aggressively marketed with promises of huge price appreciation. However, this potential for future profit is often never realized and buyers are often left disappointed when those coins fail to appreciate in value as promised.

Coins that are minted for both numismatic and bullion value are the best choice for collectors who want to build a balanced coin collection. This can be done by purchasing modern bullion coins and adding them to a portfolio that includes older, more valuable coins. For example, American quarters and dimes minted before 1965 contain 90% silver, making them good coins to purchase for their bullion value and for a variety of numismatic reasons. Similarly, by ordering a mixed package of junk silver coins, collectors can fill in gaps in their collections while increasing their portfolio’s precious metal holdings.