Can You Make a Profit Investing in Bullion and Antique Coins?
In today’s digital world the idea of making money by investing in bullion and antique coins can seem almost quaint. When bitcoin and other crypto currency is all the rage does that leave any room for silver bullion buyers and gold bullion buyers to turn a profit? The fact is that there is still quite a bit of romanticism in the concept of finding rare and valuable coins. There is still a fairly robust market of silver bullion buyers and gold bullion buyers out there. In this article we will take a look at what you need to do in order to turn a profit when selling antique coins.
Educate Yourself Before Becoming a Buyer
It can not be said enough, you need to need to educate yourself before investing. You will not make a profit off antique coins without becoming an expert. They say, “read the book before you buy the coin.” They are right. Start with researching coin collecting and bullion. There are any number of websites and books that can help you. Develop contacts among people who deal in bullion and coins. Many gold bullion dealers and silver bullion dealers are open to mentoring newbies and helping them find educational resources. Education is always a prerequisite to competent investment.
Know the Basics of Rare Coin Appraisal
There a few very important factors regarding how coins are appraised to be aware of. The most important factor is mintage, or how many coins of a particular type were minted in a year. Over time the number of coins of a particular mintage dwindles as they are destroyed. That means that the number of a coins that remain in circulation helps set the value. The demand for a particular type of coin among gold and silver bullion buyers also determines value. The melt value of the metal that a coin is made of (gold, silver) also helps determine its value. The grade and condition of a coin also influences its value to local coin buyers. Finally, the amount of dealer stock of a particular coin helps determine the value. When all those factors combine in the right way the result is a rare coin of great value.
As you build your portfolio of rare coins and bullion remember that, as with any investment portfolio, you should diversify your holdings. You should collect a wide variety of coins and bullion to minimize the risk of loss. Consider including classic US coins like half-cents, large cents, early nickels, dimes, quarters, half dollars and silver dollars. Invest in precious metals like gold bullion coins. Some foundational gold coins range from one dollar gold coins through $20 gold double eagles. Avoid “flipping” coins. Assembling a truly valuable portfolio takes years and quick profit isn’t the norm.
Be Cautious and Avoid Price Bubbles
Like any other market, the rare coin and bullion market is subject to fluctuations and “price bubbles.” Prices are determined by supply and demand. How many coins of a particular type are out there? How many buyers are there for those coins? Gold bullion dealers and silver bullion dealers are very aware of the supply and demand for their commodities. If they suddenly discover, for example, that a there is a new influx of a particular type, sharply raising the number of available coins of that type, then a price bubble will burst. The value of the coin will plummet. Alternatively, a sudden rise in demand will inflate the value of the coin.
Attend Coin Shows with Other Dealers and Buyers
Investing in rare coins and bullion isn’t like investing in stocks or other commodities. One share of stock is the same as the other, but two coins can be the same type and still have different values. That is why rare coin appraisal is so important. There are few places better to learn that than attending coin shows with other gold bullion dealers and gold bullion buyers, and silver bullion dealers and silver bullion buyers. You will be exposed to how other rare coin and bullion investors think and act. You will see the market for rare coins and bullion in action. If you follow the steps outlined here your answer to the question of whether it is possible to make a profit investing in bullion and antique coins should be a strong yes!