If you want to invest beyond gold bullion coins, rare coins can be a good alternative. As indicative from the name, rare coins are valued for ‘rarity’. The value of the coin is dependent on certain factors. In this post, we will discuss rare coins in detail, so that you can make the right choice when it comes to buying a few.
How are rare coins valued?
Rare coins are not valued on the spot value of the precious metal alone. First and foremost, the history, beauty and rarity of the coin is considered. Going by the norms, value of rare coins only appreciates with time. However, it also largely depends on the fact if the coin is collectible in the first place. Thirdly, the value of metals that the coin is made of also adds to the price. Typically, gold bullion coins are purchased and sold on intrinsic value – the price of the metal, but in case of rare coins, the numismatic value, which is determined by history and rarity is also considered.
Things to know
No matter whether you are buying rare coins as investment or for your collection, you need to get the source right. A number of dealers dealing in gold and silver also deal in rare coins, which is a huge advantage. These dealers use state-certified calibrated scales and the right elements to value such coins, so you are assured that you are paying the right price. Also, if you intend to sell off your coin collection at some point, you can expect to get the actual value at that point. There is no denying that independent collectors do buy and trade rare coins in known groups, but unless you are sure or have enough experience, it is always better to go for a licensed and reputed dealer.
Finally, take your time to learn more about rare coins. There are books and only resources out there, which can be handy. Also, you can find information from fellow collectors. For your first few coins, buy ones that you know about or have been rated for value or history. Don’t shy away from asking questions when you talk to different sellers. Licensed dealers can also give you a fair assessment of your coins, in case you want to sell them when you have a buyer. Check online now to find more on rare coins and get your first one.