Why You Need To Buy and Sell Ancient & Rare Coins by
Steve Renner
Throughout history, many coin collections have produced
substantial long-term profits for their owners. This is particularly
true for rare coin collectors of this century. Indeed, Harold
Bareford reportedly purchased a collection of U.S. Ancient coins
for $13,832 in the early 1950s which was resold at auction in
1978 for $1.2 million. A more substantial collector, Louis Eliasberg,
built a collection that cost about $300,000. In 1982, it brought
$12.4 million at auction.
This investment performance has been well documented by sources
as diverse as The Wall Street Journal, Consumer Reports and a
host of industry periodicals and guidesheets. What these reports
have shown is that carefully selected portfolios of rare coins
have had a high rate of long-term appreciation.
Of course, past performance is no guarantee of future results
and investments in rare coins do involve risk. While the market
performance of different coins varies substantially and no representation
can be made that an individual investor's portfolio will enjoy
results similar to those that have been documented in the various
independent reports and surveys, those reports and surveys illustrate
the impressive returns that carefully selected rare U.S. coins
can produce.
Tax Benefits
Capital gains on coins can only be taxed at liquidation, when
the profits are actually realized. There is no taxation on phantom
or undistributed profits as there are with some investments. And
unlike most other investments, there is no federal income tax
liability on so-called "wash sales" or like-kind exchanges
which enable investors to trade their rare coins for other rare
coins of equal or greater value
Intrinsic Value
Unlike paper investments, rare U.S. coins have real tangible
value you can feel each time you hold one in your hand. Therefore,
they offer two ways to build wealth. Carefully selected coins
truly offer the best of bullion and numismatics in one investment.
They contain the intrinsic security of bullion and can also offer
extraordinary profit potential regardless of what precious metal
spot prices do. Still, precious metal content is only a relatively
small factor in determining the value of many rare U.S. coins
whose value is almost solely based on condition, demand and rarity
Historically Significant Beauty
Rare U.S. coins are a part of our history--direct links to America's
rich heritage--as timeless and valuable as history itself. For
two centuries, U.S. coins have been symbols of American stability,
as well as reflections of national pride. Throughout our nation's
history, coins have spotlighted our national heroes, paid tribute
to our great achievements and commemorated significant events.
These truly historic works of art commemorate past sacrifices
made in the name of freedom.
Rare coins acquaint investors with historical figures and events,
no matter how far removed by time. The satisfaction of actually
owning a piece of history from a bygone era makes investing in
rare U.S. coins truly unique. Each coin has traveled a different
path through history. As a result, each is a unique embodiment
of the hopes and dreams of our founding fathers
Condition
The overwhelming majority of U.S. coins ever minted were circulated.
Many coins were lost through attrition and others were damaged
by use, thus eliminating any potential for numismatic value. The
few surviving uncirculated coins are in a much more pristine condition.
Investment quality coins are primarily those coins rated in the
11 uncirculated grades, 60 and above, on the American Numismatic
Association's 70 point grading scale. A coin's grade is a measure
of its condition or state of preservation. The higher the grade,
the better the condition.
Uncirculated coins fall into two broad categories: Proof (PF
or PR) and Mint State (MS). Mint State coins were originally meant
for circulation but never were circulated, so they remain in the
same condition today as when they were minted. Proof coins were
never meant for circulation, thus they received very careful handling
and were specially struck at least twice on highly polished planchets.
The beauty of a coin can attract collectors as well as investors,
and hence increase demand for a particular coin or set. This increased
demand can result in rising values. Eye appeal is affected by
several factors including the beauty of a coin's design, the minting
process used, the fullness and sharpness of its strike, the toning,
the brilliance of its luster and the amount of wear and number
of blemishes on the coin's surface
Portfolios or Collections?
The age-old description of rare coin collecting as the "Hobby
of Kings" is both accurate and misleading... accurate in
conveying the outdated perception that coin collecting is restricted
only to the very wealthy, misleading in that the number of collectors
has steadily increased and has been estimated by the American
Numismatic Association to include as many as 7-10 million coin
buyers in the United States alone. Typically, the coin collector
collects coins for their rarity and historical value. Collectors
view their coins as rare art and as the tangible remnants of the
cultural and economic forces that created them.
The investor begins from a different starting point--the fact
that coins of proven rarity have shown remarkably high rates of
appreciation. He sees the economic results of the pleasures of
collecting and makes his original purchases with profits as his
only motive.
However, we have found that the line between those of our clients
that are collectors and those that are investors has become increasingly
blurred. Collectors can't help but be pleased when coins that
they sell bring an attractive profit. Investors begin to see their
coins as works of art and become knowledgeable about the circumstances
of their minting and the era in which they were circulated.
Both collector and investor come to realize that their intellectual
curiosity, aesthetic sensibilities and enjoyment in our country's
past can be used to create a collection that becomes an important
store of value, a way to accumulate wealth that can be passed
on to future generations--or used to fund their own retirements.
About the author:
Steve is the ceo of cashcards-Ancientlynks rare/Ancient coin club he
was the best isp in 1997 check out his about us page at http://Ancientlynks.tripod.com
this article is free for distribution you can sign up for a free
email course on buying and selling rare/Ancient coins for profit
by sending email to Ancientcoinsinfo@yahoo.com membership of the
coins club is free to join at http://Ancientlynks.tripod.com
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Why Collect Coins? by Jon Gammon
So why collect coins? Answer is simple really. Coin Collectors,
sometimes called Numismatists, enjoy collecting coins on various
levels. Some collect coins for their rarity, some collect coins
in the hope that one day their collection will be worth a value.
Some just do it for the sure pleasure of having a hobby that is
easy to do.
Doing a little research and starting off small is the greatest
way to get started in this hobby. Learn all you can about coin
collecting basics. There are many rare
coin collecting books and websites (like this one) out there,
that will try to put a clearer understanding of what coin collecting
is all about, and we are here to teach you what you need to know
about coin collecting.
Coins have a history about them, when they were struck, why the
design was chosen for that time period. There are no reasons etched
in stone that says you have to collect coins in any particular
way. You collect the way you want to, if you want to only collect
pennies, then only collect pennies, if you want to collect complete
sets of each of the denominations of coins, then do that, or you
can just collect the coins that interest you. You decide what,
when, and how to collect.
Coin collecting basics is this, start small. Decide what types
of coins you would like to collect. What would you like your collection
to consist of? Pennies, Nickels, Dimes, Quarters, Half-Dollars,
Dollars, Ancient, Silver, Paper Money. It doesn't matter.
Maybe you want to just collect coins from a certain time period
that interest you. Whatever your decision, stick with it and work
to completing your collection. Also remember that coins that were
struck at different places have different mint marks. A mint mark
is a letter that tells us where the coin was struck. Each of the
coins that you wish to collect will have different mint marks,
to complete a set you will want to have each of the mint marks
for that coin.
Subscribe to a coin magazine, Coin World is a good one. They
have a wealth of knowledge pertaining to collecting coins. Also
visit a local coin dealer, not only will you be able to look at
a variety of coins that the dealer will be selling, they also
can answer questions that you may have, they are there to help
you build and understand coin collecting basics. Use that to your
advantage.
I guess you will need a nice place to put your newly acquired
coins. Find yourself a coin folder to display your coins. And
once you get into the hobby more you can get some coin sleeves
to house your collection and store them the way you would want.
The possibilities are endless with rare coin collecting, and
learning coin collecting basics is the first real step in the
progression of building a great coin collection. Building a coin
collection, is a long process. It doesn't happen over night, it
doesn't happen in a week, and unless you are filthy rich, it won't
happen in a year. Collecting takes time, effort, and persistence,
and the fact of the matter is, there are so many different types
of coins to collect that it takes time to study and learn about
each of the prospects.
The United States have produced many different varieties of coins
from the penny to the Ancient dollar. They have produced commemorative
coins celebrating a historic event or an anniversary. Whatever
you chose to collect I am sure that with a little effort on your
part, that your collection will be something that you can pass
on to your children, or build a small nest egg for your retirement,
or whatever you choose to start rare coin collecting for. Learning
coin collecting basics is a healthy start to building a wonderful
coin collection.
About the author:
Jon Gammon is the author and webmaster at http://www.thecoinalley.com.
Visit http://www.thecoinalley.com
to view other related information on the wonder Hobby of Kings.
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