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.
Now that gold and silver prices are at higher levels and we see and hear about it on the news and financial shows, we wonder if we should be buying. Yes and no? Yes we should be buying and no we should not be buying. A contradiction?yes. Buy because we want to add to our investments and collections. Don?t just buy because the price is rising and we may make a profit.
What do we buy?
The most collected coins in the USA are: in silver:
Copper pennies, all Barber coins, Buffalo nickels, and the new nickel series, Mercury dimes, the New Quarters, All silver quarters, Silver Half Dollars, Walking Liberties and Franklins. Kennedy Half Dollars and Morgan and Peace Silver Dollars.
Collected in gold.
St. Gaudens double eagle? $20.00 gold coin All gold Indian coins Liberty gold coins. All denominations. Gold Pandas. This is a bullion coin but carries a collector premium. All the above gold coins trade at a premium to the gold price.
What makes a coin valuable? The main thing that makes a coin valuable is supply and demand. Lots of demand for a coin increases the price. It does not make it rare. There can be low demand for a coin but it will have a high price. This can Happen for reasons such as, low quantity of coins. Low silver or gold prices.
High value rarities trade on their own merits. They are wanted by very wealthy Individuals and will command very high prices. TV and internet auctions can also cause price levels to rise.
Many low priced coins trade at or near the metals value. So if the metal price is rising so will the coins of this type. As more rare coin collectors try to get a coin the value can also rise in price. Most often the rare coin collector who collected for enjoyment ended up with a valuable collection of coins. The profit was secondary to profit. Should you collect your rare coins for fun and enjoyment you may find you have a profit when you go to sell your rare coin collection.
Rare gold and silver coins are a long term investment.. About 5 to 20 years is best for profit. Silver and gold bullion can be purchased in coin or bar form. By buying low and selling high one can make a good profit However you will find your best profits come from buying nice silver and gold rare coins.
Learn about the coins you plan to collect. This will give you an advantage and know when you see a good buy. It is always best to buy the coin and not the plastic holder. Keep your collecting fun and the profits will come.
One last thing, collectors should buy coins that grade fine to About uncalculated (AU) Investors will normally stick with graded or slabbed coins. This is ok but a collector can play in both areas and with knowledge can gain an advantage over the investor.
To read more about how to invest in rare coins, visit the website. Link in the resourse box.
Have you enjoyed this article, want to learn more visit my web site and sign up for the monthly news and tips letter.Use the contact page to sign up.
Richard Irby has been collecting, buying, selling and trading silver and gold coins and sports cards for 25 plus years. To contact Mr. Irby use the contact page at: http://www.rarecoins4u.com
Copyright 2008 richcoin publishing
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