Modern Numismatic collecting is an emerging practice. We are seeing traditional bullion buyers purchasing collectables and new buyers purchasing numismatic items. Modern numismatic collectables can be collected like bullion items since they can be used to store wealth. They can also be collected for the pure enjoyment of the hunt or as a way to celebrate a hobby or interest.
What are Modern Numismatic Collectibles?
What is considered “modern” may vary, but most agree that modern coins are minted using machinery rather than by hand. These can include early American coins, vintage coins, and historical European coins, but would not include ancient coins like ancient Greek coins. Modern collectibles also include recently minted items.
These types of coins often carry a value above the value of the metal.
Benefits of Investing in Numismatic Collectibles
There are many benefits to investing in modern numismatic collectibles. The two salient reasons include,
Diversification
Rather than just collecting one type of item, like bullion coins, you can diversify your portfolio by adding numismatic items such as coins, bars, or rounds. Diversification helps balance your portfolio.
Potential for Appreciation
While most collectibles hold their value as bullion, some items appreciate, especially because many have a limited mintage so they may become rarer through the years, potentially increasing their value.
Coin Collector Trends
Increasingly even experienced investors are becoming interested in numismatic collectibles. While they may not be as low priced as simple bullion items, they have the potential to gain value. Or they may support their other interests. For example, a car enthusiast may want to collect the Icons of Route 66 Highway Shields, or an animal lover may gravitate towards Somalian gold elephants.
Another notable trend is that coins collected by longtime collectors are reentering the market making it easier for younger collectors to obtain coins that were previously difficult to find.
Types of Precious Metals Bought by Modern Collectors
Commemorative Coins
Commemorative coins celebrate historical times, modern events, or organizations. They also usually have a limited mintage. These kinds of coins may celebrate events like the Olympic Games or honor those who served in the Army.
Proof Coins
Proof coins are struck with polished dies giving them a mirror like finish. They are limited mintage coins. They cost a bit more than a standard release coin, but they often come with special packaging and may be graded too.
Limited Edition Coins
Limited edition coins can become rarer through the years and may be able to appreciate. Also, coin collectors may find other collectors interested in buying their coins, which may be a sought-after year or version.
Mint Errors and Variants
Slight variances and errors are often sought after and easy to sell. Research known errors and variants so you can identify them if you come across them.
Colorized Coins
Colorized coins are a relatively newer option. These coins often feature themes, events, celebrations. Colorized coins are often purchased to celebrate events such as birthdays, weddings, or national holidays.
Pop Culture Coins
Coins featuring pop culture are becoming increasingly popular. These coins or bars may feature movies, games, musicians, or television shows.
Uniquely Shaped Precious Metals Items
Not all bullion items are round or square, bullion can be formed into any shape. They can be foil, statues, bullets, characters, and more. Many enjoy collecting bullion specialty items.
Risks and Challenges
Like most investments, some risk is assumed. The precious metals markets are always changing based on numerous factors including geopolitical events and the actions of central banks.
Market Volatility
Managing your investment through volatile times requires planning and patience. Financial advisors recommend you maintain a balanced portfolio to mitigate the issues that could occur in reaction to volatility.
Risk of Counterfeits
If you are new to investing, you may not be able to identify a counterfeit item. We recommend that you buy from reputable dealers. We also recommend that you do not buy for under spot. If you see a deal that appears to be too good to be true, it likely is.
Storing Your Collection
If you plan to physically hold your precious metals collection, you will need to consider security and storage. You will also need to plan for the safe transport and shipping of your precious metals.
Before placing your order, ensure that your bullion will be shipped securely. Review return policies and the processes for handling damaged products. Next, decide on how you want to store your collection. Most are satisfied with storing their precious metals in a home safe. Make sure to put the safe in an inconspicuous place and away from moisture and heat.
Tips:
- If items arrive in protective packaging (TEP), do not remove them from the packaging.
- Do not wash coins, no matter how tempting. Washing will lower their value.
- Do not remove graded coins from their packaging, they will instantly lose value.
- Do not store precious metals in PVC containers.
Starting your numismatic collection can be an enjoyable adventure. It is fun to find a specific coin you may need to complete a collection. Turning a coin for a profit creates a celebratory moment. Sharing your love of numismatics, sharing gifts like a colored or commemorative coin or bar also brings joy.
With research, practice, and careful planning buying modern numismatic collectibles can be an amusing endeavor.
