The Human Element of Numismatics: Patience is Key

Investing in Numismatics Can Be a Wonderful Investment…For the Patient

When it comes to investing in rare, beautiful coins—one thing to always keep in mind, is that it’s a waiting game. Here at Global Monetary Reserve, we’ve seen every type of investor: the one who want immediate returns, the one who can sit on his investment until retirement, the one that does it for the love of collecting…etc. While you can see return of your investment early on in your purchase, its not the norm, and typically we advise clients to hold on to their investment for 2-5 years before thinking of selling. If one thing can be said about Numismatic investing is that—the longer you wait, the more you’ll make.

Pay Attention to Past Performance

Whether you’re looking to sell your Numismatic investment shortly after you purchase, or are planning on sitting on your investment for years to come: always pay attention to the past performance of a coin. Most NGC, and PCGS graded coins have performance history right at your finger tips. Simply insert the certification number on the label and months, even years of value history is shown right before your eyes.

Auction houses also keep records of Numismatic coins sold on their blocks: rises, and falls in value are easily compiled, and are well worth the time it takes to do the research. Global Monetary Reserve’s expert Precious Metal investment advisors are readily able to provide answers to any of your questions regarding a particular coin.

How Long is Enough?

The longer you wait, the better the return on your initial investment. But how long is enough to make money off your Numismatic coin? Global Monetary Reserve advises to wait at least two to five years before you look at selling your Numismatic coin.

For others though, paying attention to the Numismatic community is always key, and if you see your coins value rising exponentially; you could make the judgment call yourself to sell. The absolute minimal a person should hold on to a coin is six months; anything before that and you could risk losing money on your investment.

Psychology Behind the Investment

1861 Seated Liberty Quarter Dollar graded by NGC as PF68*.

Losing money by selling to quickly has a bit to do with the Psychology of collectors and investors of Numismatic items. Take for instance the 1861 Seated Liberty Quarter graded by NGC PR68; which was originally part of the Eric Newman collection—featuring some pieces that had not been offered for auction in over 75 years! Numismatic collectors started a bidding war and Mr. Gardner, the owner of an equally valuable collection, was victorious paying $188,000 for the coin. Six months later during a sale of part of the Gardner collection; the same coin sold for $129,250! Jeff Garrett, founder of Mid-American Rare Coin Galleries says of the phenomena, “I have state many times before that the rare coin market can be psychological warfare. Having the chance to buy a coin that has been off the market for 75 years is much more exciting than buying one that has been off the market six months!”

Whatever aspect of coinage you choose to begin collecting, Numismatics is a wonderful hobby; and can be a lucrative investment. If you’d like to learn more about collecting, and investing in Numismatics coins contact Global Monetary Reserve at 877-795-9585 today to get your free personalized consultation with our expert staff. Stay tuned for further installment of Numismatic tips!