Rare gold coins are fantastic investments, but if you don’t invest properly, you will end up losing big. Naturally, people hope to create as successful a portfolio as possible, and one of the best ways to ensure your success in this industry is to educate yourself and immerse yourself in rare coins and everything about them.
Rare coins are composed of precious metals, just one of the many reasons they are such valuable and secure investments. As most people are aware of, precious metals appreciate and depreciate based on supply and demand. For example, during the California Gold Rush, gold was being sold and traded in abundance, and for a short time, the value of silver exceeded gold, something that is normally inconceivable. Coins minted during this time were distinguished by the sealing and stamping of the word “CALIFORNIA,” to indicate their manufacturing during this specific time. These coins are rare and were produced in a very limited quantity, and as a result, are more valuable and seldom seen on the market.
Many investment analysts have investigated the possibility of investing in “treasure” or rare coins found on sunken ships that have been recovered.
One renowned investor, and author of “The ABCs of Gold Investing,” Michael J. Kosares, discourages investors from buying coins found on sunken ships, warning against the potential losses that are likely after the excitement and novelty of this discovery subsides.
Authors of “Treasure Hunter: Diving for Gold on North America’s Death Coast,” Robert MacKinnon and Dallas Murphy disagree with Kosares’ claim, and boldly note that some coins found on sunken ships, such as ones in the area of Cape Breton on the Atlantic Coast, will make for great investments, and will grow even faster than the ordinary rare coin investment thanks to the government of Nova Scotia prohibiting treasure hunters from exploring these shipwrecks.
Because of this interdiction, thousands of coins are lying on the ocean floor, increasing the value of the existing coins which have already been recovered, and making those on the market even more rare.
If you are an enthusiast or risk-taker bent on investing in sunken treasure, pay close attention to every detail, and dig up as much information as you possibly can about the potential coin or coins you are considering purchasing. Because these coins are lying on the ocean floor, and often for long periods of time, one of the most important details to investigate is the condition of the coin. The condition of a coin can increase or decrease its value innumerably, and if you are looking into a gold coin, you may have no cause for concern because of gold’s durability, but if the coin you are interested in is bronze, you may have to deal with severe damage resulting from extensive exposure to salt water. As a general rule of thumb, you’ll want to only buy graded coins, and when looking on the grading scale, try and secure a coin with a grading of MS-64 or higher.
Rare coins are an unbelievable investment form, and according to a 1989 survey conducted by the Salomon Brothers, rare coins returned about 30 percent annually, claiming the spot for the second most lucrative asset. In this same survey, coins outperformed nearly every other asset and investment in 10 and 20-year time periods.
When you are ready to invest in rare coins, your first order of business should be to find a reputable dealer. If you are unsure of how to do this, start your search by visiting the Professional Numismatists Guild’s directory of dealers. In addition to being a member of the PNG directory, you’ll want to make sure your dealer has experience, positive reviews, and an untarnished reputation for ethical business.