Coins as an investment

Coins can perform well as an investment class. However as with any other asset prices can fall as well as rise.

Coins are a tangible asset. As so they have a number of advantages and disadvantages. A valuable collection needs to be insured and stored safely and these are ongoing costs. There is also dealers commission (often up to 17%) when buying and sometimes when selling. Rare coins may have a limited market an as so be relatively illiquid. However for most coins there is a ready market.

The market in coins does vary over time. Recently coins have performed well. Even in the "credit crunch" coins especially better quality coins seemed to have performed well. This is likely to be due to a flight to tangibles. However the market for lesser pieces has seemed a bit thinner.

Coins are not immune from dropping in value. In the early 80s the market collapsed and prices may do so again.

Recently gold issues seemed to have performed particularly well especially hammered English and Roman gold.

We still believe the reason to buy coins is love of the hobby. It seems a great shame if coins are bought by people with no interest in them. They do not deserve them!

We believe a renewed interest in history will support the hobby as will the internet which lends itself to the collection especially with advent of digital images. However threats come from increasing numbers of fakes which may erode confidence.

If coin prices rise the value of your collection will rise. If prices fall you can afford more coins. Either way you win!