Check out our analysis of the Numismatics markets. Here are a few key points to bear in mind when weighing up the pros and cons on investment vehicles:
· Collectable coin value is not based on gold spot price, but scarcity, so is less volatile than bullion.
· Investment grade coins steadily increase in value because of their historic and cultural value. Even bullion prices fluctuate.
· U.K. has numerous respected auction houses, particularly around London, making disposal straightforward.
· This market is still expanding steadily, albeit specialist and unlikely to parallel bullion in scale.
· Numismatic coins are attractive to both investors and hobbyists as a source of value.
Advantages Over Other Investment Assets
Coins offer a number of distinct advantages as investments, compared to more traditional portfolio assets:
· Numismatic collections are real, tangible assets you can handle and control. Many investment portfolios are ‘paper’ assets, which can be devalued very quickly, without warning, due to unpredictable events e.g. Contracts For Difference, Stocks and Shares. Even relatively ‘profitable’ commodities, such as oil has seen drastic falls in price. Shares in banks, generally reliable, too have been taking a dive since 2015.
· As coins are portable assets, the investor can trade at their convenience, without relying on third parties other than auction houses if you choose this route to sell. There is less experiencing of delays in terms of logistics and choosing optimum trading times.
· Numismatic investments offer a much more personally satisfying investment experience for the collector-who-invests, rather than for the investor-in-collections. The substantial profits possible in trading numismatics is just an added benefit for many collectors, who often have an interest in history.
· Coins themselves have an inherent value for either their aesthetics or the histories behind them. The romantic appeal of understanding their place in the making and falling of empires is appreciated by many. There is a genuine passion to be indulged in collecting symbols of history. Only art pieces can compare for being genuinely cherished.
· Numismatic coins are physical embodiment of the systems of finance and trade which developed our world. This historic backdrop to their use adds value beyond more ‘superficial’ assets e.g. bullion. The coin’s mystique and depth of story intensifies interest for collectors.
· It is easier to understand the relative value of historic and collectible coins, over complicated financial market assets such as: SIPPs, Options, Forex Trading, Stocks and Shares fundamentals. In terms of value relative to most savings accounts, there is no competition.
· Their value relative to other assets increases at a better rate – some coins sell for over 50% of their metal content and the rarer the coin, the higher the value.
· Compared to other tangibles, such as bullion, or art, coins are small and so are easier to store. Logistics for trading are straight forward.
If you are interested in finding out more about numismatic coins, trading and histories of coins, sign up for our newsletter. We share news of new collections coming onto the market, news coming out about finds, valuing coins and much more to our community. By all means leave us your questions and when is best to get in touch. One of Exclusive Coins’ expert numismatists will be in touch to help.