Best Coin Choices for a High Return on Investment

Some coin collectors don’t worry so much about their return on investment in coin trading because they view it as a hobby and have sufficient cash to cover any potential losses. The average coin collector, however, relies on a high return as it is important to their cash position.

The first rule of being a collector is realizing that not all acquisitions provide a good return on investment. Coins are considered a wise investment compared to many others because they generally increase in value as they age. Fluctuations in the coin market can sometimes bring a higher return on investment faster than expected. Coin market changes can occur for many reasons, including the death of an important political figure or the overthrow of an existing government.

Coin market fluctuations are hard to predict, and it is also hard to determine just exactly how they will affect prices. A recommended coin collecting strategy is to seek coins with historically elevated ROIs.

So what causes a coin to be valuable in the first place? The following four criteria have much to do with the return to be expected on collectible coins.

1- Coin Condition

A coin that is in mint or quality condition is naturally going to receive more investment return than a coin that is bent and has excessive wear. A coin in bad condition won’t be of much value unless it is extremely rare.

2 – Coin Quality

It is not a simple task to set a value on coin quality, but it does have an affect on the final value of the coin. A good number of very old coins were not of very good quality when they were minted. Some of these are often the only survivors of their kind, so quality is not the foremost concern because there are so few of them. So some coins may have qualities of luster, shading, and symmetry, while others are lacking in these areas. Another thing that makes a big difference in how a silver or silver plated coin looks is the amount of copper it contains.

3 – Coin Scarcity

If you have possession of a one of a kind coin, it should be no surprise that it is most likely worth some money. Even if a coin is one of a few others of its kind, you still stand to make a good profit in the right coin market. The NGC can be of great assistance in determining just how rare and valuable a coin is. The best bets for a good return on investment include gold and silver coins of a limited number.

4 – Coin Popularity

Just because a coin is rare does not make it a good investment; it must also be popular and in demand by collectors. Even if a coin is scarce, old, and in mint condition, it still won’t bring the best price if it isn’t popular.

Keep in mind these four conditions when purchasing coins for your collection for the best ROI (return on investment) for your coins. Try to always purchase at the lowest possible price, and be cautious shopping with dealers and traders as some will attempt to sell a coin for more than it is worth.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!