If you are a neophyte wanting to venture into rare coin collecting as a hobby, there are two new best friends waiting for you. One is the Professional Coin Grading Service price guide and the other is the Red Book guide book. Both of these books will give you lists of coins and their worth so you can safely start your search for rare coins. A further study of these two will lead to an understanding of the criteria and standards used in grading coins. The prices they list down will also give you an idea of how much you need to invest as you go along.
Availability of Rare Coins
Rare coins are not easy to come by so if you are serious about collecting rare coins, be ready to spend time, effort and a good amount of money in acquiring your treasures. Collecting rare coins is an ambitious undertaking especially if you bear in mind the fact that there is a huge population of collectors who may be competing for the acquisition of the same item that you want to buy. At present, in order for a coin to be classified as rare, no more than seventy-five pieces should be known to exist. In other words, a coin has to indeed be rare before it can earn the name.
Some rare coins have a value of more over a million US dollars. Some coins have no value except for their face value or their metal value. There are lists of coins that are officially considered rare and some reliable professional guidebooks will even include tips on how to rate coin quality. Information on rare coins in some of these guides will explain why such and such a coin is so rare. Explanations will include how many coins were struck and if a substantial number was melted. On top of most if not all rare coin lists is the 1794 Flowing Hair Dollar which is valued at $7,850,000.00. Only 1,750 of this coin were struck so it is virtually impossible to own one.
Factors Affecting Price
Rarity is not the only factor that brings up the prices of rare coins. Other factors such as coin grading enter into the picture. In the same way, the supply and demand for rare coins in the market affects the price of coins. Sometimes temporary spikes in demand occur for certain coins and these are not to be mistaken for a sustained trend.
Advantages of Collecting Rare Coins
While much will be demanded of you if you decide to pursue rare coin collecting, this venture offers advantages of its own.
- Storage and safekeeping of rare coins is simple. All you need is a safety deposit box. Coins, even rare ones, are sturdier and easier to care for than jewelry.
- Rare coins are easy to transport.
- They are a form of investment that is not constantly scrutinized.
- They serve as an effective hedge against inflation and are a good way to protect wealth during times of economic crises.
- They are relatively easy to resell through reliable agents and auction houses.
Whether done for fun or for profit, acquiring rare coins is a very worthwhile endeavor. As a newbie, you are probably excited about starting your rare coin collecting activities. At present, the price of rare coins is less than what they cost thirty years ago and many resources predict that prices will go up. This makes the present a good time to invest in rare coins. To decide on which coins you will start your collection with, get a good resource book and look at which rare coins are still within your reach. Once you have decided, conscientiously study different guides and compare the price of these coins. By applying meticulous care in choosing your coins, you will be rewarded not only by the prospect of financial returns; you will also have pieces of history to enjoy for the time that they are with you.