Q: How profitable is the rare coin market ?
A: Like any open market, the rare coin industry is subject to highs and lows. The price of precious metals such as gold and silver bullion can have an effect on the coin market. However, rare old coins are somewhat protected from this volatility, as they are valued more for their scarcity and condition than the metal content.
A quick analysis of some charts can give you a good indication of the strength and health of the rare coin marketplace.
Q: Why buy rare coins ?
A: Coins and other numismatic collectibles have historically been a worthwhile investment. Standard investment items like stocks, bonds and mutual funds can be difficult to evaluate for quality and value (see: US Equities Market Crash of 2008). In the rare coin world, a little research using the vast resources and guidebooks available on the internet and in libraries can prove to be extremely valuable information. Old coins were produced in limited numbers, and these numbers are verifiable. The condition of a rare coin can be accurately certified to published standards (see Official American Numistamtic Association Grading Standards). Unlike owning a stock certificate, which is not unique and subject to dilution if/when the corporation decides to sell more shares, an old coin will *never* be produced again.
Use of a site such as PCGS.com will enable the diligent coin investor to determine scarcity, ascertain/confirm quality and establish an accurate assessment of value.
Collecting and investing in rare and collectible coins can be profitable and is fun. It is a hobby that can be enjoyed by all family members and passed down through generations.