Should I buy Bullion or Rare Collectable Coins?
Many people who enter the coin market believe you should either strictly buy bullion coins or buy rare coins. In their mind there is simply no in between. However, the most successful people in this market actually have both. How much of each is a topic we will save for later and its something that really has to be looked at on a case-by-case basis.
Many people who enter the coin market believe you should either strictly buy bullion coins or buy rare coins. In their mind there is simply no in between. However, the most successful people in this market actually have both. How much of each is a topic we will save for later and its something that really has to be looked at on a case-by-case basis.
Those who are looking at a more long-term approach often seek out rare coins. Rare coins are best suited for these individuals who are thinking long-term, like 5 to 10 years or longer, and they often have significant growth potential.
In the simplest of terms, bullion coins are more of an insurance policy against devaluing paper currencies where as rare coins have a proven track record of growth.
For example, just recently a rare $10 Liberty gold coin came up in auction. The coin was an 1841-O $10 Liberty PCGS AU 55 and the last auction appearance for a PCGS AU55 example came in February of 2009 where the coin realized $25,300. In a recent auction another PCGS AU 55 example just realized $61,687, more than double the price it brought just seven years ago.
Ultra rare coins, coins where there are less than twenty known, seem to do exceptionally well over the long-term. Coins like the 1870-S Silver Dollar that had an average value of $120,000 in 1990, today has an average value of around $1,400,000.
Rare coins are definitely not a “get rich quick” strategy, but its been proven that rare coins have great growth potential over the long term. Rare coins are in a fixed supply and the demand is continuing to grow.