3 Rare Coin Myths to watch out for
Before you move on any further, please be advised that this article is a MUST READ if you:
- üAre thinking about buying rare coins
- üHave owned any rare coins in the past, or
- üBought rare coins in the past and have been conned
Coin collecting is not just a hobby anymore. It allows buyers to maximize their ROI without incurring any significant risks. In this regard, rare coins (antiques or faulty) offer a true hedge against inflation, remain unaffected by security market fluctuations and are sheltered against the dynamic FED monetary policies.
However, when it comes to rare coins, there are some popular myths in the market. Because of these, low-value coins are often masqueraded as rare coins. Such coins always fail to live up to your expectations, at the time of sale or encashment. Here’s a look at three of the most popular myths all rare coin collectors need to be wary of:
All Minted Coins and Limited Editions are Rare Coins
Many of us have come across newly purchased beautiful and shiny coins from private mints, as well as several limited edition coins minted by the U.S. Government. Most of them are packed in elegant display boxes. They are also sold as early releases, perfect condition or first strikes.
What set these coins apart are their pristine conditions. They come in beautiful gold or silver colors and often have a historical figure or scenery etched on them. They look appealing to most buyers and, because they are new and unused, they carry high grades from several reliable sources.
Unfortunately, that’s where even the most experienced buyers are wrong. Just because they look new and unused does not mean that they are rare coins. So don’t just mistake all mint coins as rare coins. Get an evaluation done before buying such coins.
Semi-Numismatics make up for Rare Coins
Semi- numismatics are part bullions and part coins. They are usually traded at a high pricing premium and this is what prompts coin dealers to display them as rare coins. In reality, they do not necessarily fall within the domains of rare coins.
Unlike rare coins, the value of semi-numismatics changes directly with bullion prices. Such coins neither protect your portfolio nor do they decrease volatility or have any other potential benefits to offer, when compared with rare coins. Next time someone hands you a $20 Gold Saint Gaudens or a Peace Silver Dollar coin, know that they are semi- numismatics and not rare.
Catalogs Give a True Idea of Rare Coins
Most of the dealers tend to offer a number of rare coins. When you ask them, they’ll probably respond with “how many rare coins would you like to buy?” Although it’s not fair to say that rare coins offered in bulk are always non-rare coins, but in some cases, it holds true.
Online catalogs are a rich source of information. However, a glossy catalog page offering a nice complimentary gift box along with a rare coin is often a dangerous sign. The price of a coin does not reflect its rarity. In fact, it includes the price of the box and packing charges.
So the next time you go coin shopping, rely only on your trusted coin and coin collecting supplies vendor CS Supply Central for reliable and genuine rare coins.