2 September 2024
You may agree that coin collecting is one of the most rewarding pursuits in the world. After all, it was once known as the “hobby of kings” due to its roots during the European Renaissance among wealthy Europeans. Historically, collectors purchased rare coins for their historical significance and beauty. But as these coin collections were sold for significantly higher values, investors began turning to rare coins as an asset class of their own, to gain capital appreciation, diversification, non-correlation to stocks and as a hedge against inflation.
As you look to acquire your next coin, it’s useful to keep in mind several rules around coin collecting. These ideas can enrich you both personally and through the value of your coin portfolio.
1. Education
Learn as much as you can about numismatics. Study the amazing history of coins, which brings to life past eras in our country and world. Learn about the current market dynamics. Read publications like Coin World and Numismatic News and follow our blog here at Blanchard. Talk to other collectors. Talk to one of our Portfolio Managers who will gladly answer any and all questions and take the time to get to know you personally, along with your interests and goals within numismatics. Don’t be afraid to ask questions—that’s how you learn!
2. Acquire the finest available
This one is simple. Here’s what we at Blanchard tell our clients: Always acquire the highest quality coin that fits your budget and you will never be disappointed.
3. Specialize
Serious investors don’t need a large variety of products to build a solid portfolio.
4. Know what you are buying
Take the time to learn about coin grading. The PCGS Grading Standard is a reliable method to understand the coins you are considering.
Here at Blanchard, we work with the best numismatists in the country to personally purchase and curate every coin that we sell. Any coin that we sell has been reviewed and graded in advance.
5. Buy coins for the long term
Coins are a long-term investment. Never assume a coin investment will make you rich overnight. The greatest collections of all time were built over decades, which leads us to our last rule.
6. Think like a collector: $400,000 to $45 million
You may have heard of Louis Eliasberg. He is a legend in the numismatic world. Starting in 1925, Eliasberg began purchasing U.S. coins and by 1950 his collection was considered to be one of the greatest coin collections in U.S. history.
He compiled his entire collection for less than $400,000. After his death in 1976, Eliasberg’s collection passed down to this two sons. Neither of them shared their father’s passion for numismatics and eventually they auctioned off the collection. It sold for an estimated $45 million.
This shows that one of the best ways to invest in rare coins is to collect rare coins. Eliasberg’s collection is proof that collections are sold as a whole for dramatically more than the total value of the individual coins.
How have you found coin investing to be rewarding? Share a comment below
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