| The first question I ask people is why they want | | | | merely want an alternative investment vehicle, |
| to invest in rare coins. Is it because they heard | | | | buy gold, silver and platinum bullion until you have |
| that rare coins appreciate at a sizable rate? Did | | | | the knowledge to invest in rare coins. Rare coins |
| they hear that rare coins have outperformed just | | | | are a long term investment and may not be liquid |
| about every market over the past 50 years? Is | | | | enough for your purposes. Bullion is liquid |
| it that they want to hold hard assets as part of | | | | anywhere in the world, any time. |
| their investment portfolio? | | | | When investing in rare coins, find out what the |
| Most people respond that they like what they | | | | different grading services mean. Some services |
| have heard from large rare coin companies whom | | | | have no credibility and must be avoided at all cost. |
| they have spoken with. They like knowing that | | | | These coins are often overgraded and worth a |
| these coins go up in value every year. They like | | | | fraction of the asking price. What about |
| the fact that there are limited quantities of the | | | | population? Population is the number of coins that |
| "rare coins". But too often, they are not aware | | | | have been certified in a particular grade. Just |
| that not all "rare" coins are rare. That is, just | | | | because the population of a coin may be 2 or 3 |
| because someone says something is rare does | | | | does not necessarily make it rare. It may be that |
| not make it so. | | | | enough people have not submitted their coins to |
| Investing is rare coins can be profitable but you | | | | be certified but there are in fact, hundreds of |
| really must know what you are doing. Like any | | | | these coins waiting in the wings. |
| other profession, there are good service | | | | Every dealer has an opinion about what coins to |
| providers and bad ones. There are those that | | | | invest in. Some dealers specialize in only one type |
| truly want to see you make prudent investments | | | | of coin, hence they are partial to selling and |
| and then there are those that only want to line | | | | touting that type of coin. If you intend to |
| their own pockets. The way to avoid losing your | | | | specialize in the same type of coin, such a dealer |
| shirt is to be proactive. | | | | may be perfect for you. If you have no interest |
| Being proactive means learning about rare coins. | | | | in forming a "collection" and instead are looking at |
| Would you just buy a stock that someone tells | | | | investment potential, do not invest in one |
| you is a good deal without knowing what the | | | | particular type of coin only. If that series falls out |
| company produces or the service they provide? | | | | of favor with collectors and investors, the values |
| Probably not, so you must do the same due | | | | will drop. |
| diligence when investing in rare coins. | | | | In my years of designing numismatic portfolios for |
| First off, find out what makes a coin rare. Is it | | | | private clients, we have seen some coins come |
| rare because so few were made or because of | | | | and go in popularity. However, some series are |
| the fact that although millions were minted, few | | | | always popular. Similarly, when we design precious |
| have survived? Is there a possibility that a hoard | | | | metals portfolios (bullion), we take into account |
| may be uncovered and the market flooded thus | | | | the current and projected demand (and supply) of |
| driving the value of you coin down dramatically? | | | | the metals we include in the portfolio and the |
| You really must become a student of | | | | percentage of each. |
| numismatics to make informed decisions or you | | | | Investing in rare coins, and/or bullion, is not to be |
| will have to rely on the honesty and integrity of a | | | | taken lightly. There is a lot of work involved with |
| professional dealer. If you rely on a dealer to | | | | designing a well balanced portfolio. We work with |
| make recommendations, find out what you can | | | | high net worth individuals who are seasoned |
| about the dealer. How long has he been in | | | | investors. We welcome their calls and questions. |
| business? Does he own the company or is he just | | | | Nothing makes me happier than telling a client that |
| a salesman? Is the company too large? Will you | | | | his portfolio has risen 30% in the past year. |
| merely be a number when you deal with them | | | | If you have been thinking about investing in rare |
| and not a person? What are the dealers | | | | coins or bullion, or if you are presently working |
| credentials? What about his personal life? Does he | | | | with a dealer but are unhappy, feel free to |
| seem to be honest? | | | | contact me. I would be glad to answer your |
| For those of you who are willing to do your own | | | | questions, and possibly work with you to achieve |
| homework, welcome to rare coin investing. To | | | | your goals. |
| those of you with no interest in rare coins and | | | | |