These days, many people are looking for ways to put their money somewhere safe and secure. After the recent economic turmoil when people suddenly lost huge portions of their investments, who can blame them? If you’re looking for a way to keep your money safe, why not try investing in rare coins? Though they’re often used as a hobby rather than a true investment, they can actually be both. Here’s why.
Rare coins, for one thing, are inherently valuable because they’re made of high quantities of precious metals. The rarest and oldest coins are normally those with the highest quantities of these metals. Before the price of each precious metal went up so high, they were often used in everyday currency because of their inherent worth. Now, base metals are more often used in currency. You can easily find silver and gold coins, though, from years ago. They’re interesting to look at, and they’re always going to be worth something because of their precious metals content.
Also, though, rare coins are valuable because of their very rarity. As the years go by, commoner coins often become worth more as their sister coins disappear or end up getting pulled off the market for some reason. Start with a coin that’s only sort of rare, and you may end up with a pretty rare specimen that eventually becomes worth quite a bit more than you bought it for.
Collections of rare coins can also be a good way to invest in them. When you take the time to put together a coherent collection of coins from a certain year, mintmark, or other category, the set is often worth more than each individual piece put together. This is because you’ve done most of the work. Now other coin aficionados will be interested in paying more for your collection than you bought it for simply because you have all the pieces.
Coins can also be a good way to pass wealth down to future generations. Since they fall into a different category than actual bullion coins or money, they’re taxed differently. You may even be able to have them escape estate and death taxes altogether! Your children and grandchildren can reap the benefits of a good collection of coins because of this. While not everyone uses rare gold coins or rare silver coins as investments, you can structure your collection like this if you want to.