Many of you here may have your collection of coins for a multitude of reasons, but I would like the odds that a fair portion here enjoy the investing side of precious coins. While there are certainly some drawbacks to investing in precious coins, there are also many benefits.
The first benefit is that it provides a hedge to nearly every other class of investments in a time when they are of greatest benefit. Social unrest, high inflation and just overall poor economic conditions are great for your investment. These conditions create fear, and the age old investment when fear is present is precious metals and coins. This increased demand with stable supply creates a bonanza for your coin's price. Also, if the worst comes to worse and society collapses, I would like the chances of precious coins becoming a valuable item for bartering.
My second reason for investing in precious coins is that with diligent study, collection curators can forge themselves a competitive edge leading to outsized returns. This edge is incredibly hard to create in larger markets, but the nature of precious coins allow for bargains to be found, especially in the cheaper coins. A trained eye can find deals they can flip to create a profit with minimal time invested. This may sound easy, but it requires an immense upfront investment of time and effort to get to this stage, so no, it isn’t a free lunch.
The final reason that I believe investing in precious coins should be considered is that they are tangible, as in, you hold the coin in your immediate vicinity, and you aren’t going to wake up one morning discovering a dodgy CEO has cratered the assets price. While there will be fluctuations of the price, you hold the coin, nobody can take it from you (well, I hope they can’t), and unlike money in the bank account, it can’t just disappear if SHTF.
If you find this pessimistic, remember that I consider precious coins (or just precious metals) as an investment against a bad future, so it will never be my entire portfolio. However, they are a good option for these reasons and allows you to sleep soundly at night.
