Jun 2021


Jun 2021

Investing In Historical Coins

By StoneX Bullion

For the vast majority of people, investing in historical coins is more than a hobby. We at https://stonexbullion.com have a number of coins on our platform, from Queen Victoria Sovereigns to Wilhelm II Gold Coins. But why are they so popular, and what are the benefits of investing in them? Read on to find out more!

How is the value of historical coins determined?

The value of these coins is referred to as its numismatic value and it depends on several factors. According to the Collector Services division at The Royal Mint, the value of a historic coin is determined based on its rarity, quality and demand within the market.

Advantages of investing in historical coins

They are considered to be stable

Historical coins are widely considered to be a stable form of investment. They are somewhat insulated from unforeseen price shifts and destabilizing forces of the market. Why? Well, they have a huge collector base. The U.S Mint estimates that the number of collectors in America alone is over 140 million! And as more and more newbies are coming in each year, the market is further stabilised and strengthened.

They provide portfolio diversification

When it comes to investing, portfolio diversification is the golden rule. Investing money in different asset classes and securities minimizes the overall risk of the portfolio. So if you are investing in real estate, stocks, and mutual funds, historical coins give you an opportunity to diversify your investment portfolio. You get to mitigate risk or volatility at the same time as owning some beautiful coins … a win-win!

They are liquid assets

The liquidity of an asset is another important aspect of investment strategy. Historical coins make for globally liquid assets that can be readily converted to cash to pay at a moment's notice. Active coin markets exist globally. With the number of coin dealers and coin brokers on the rise around the world, the selling and purchasing of coins has become easier than ever.

You can own piece of history

Historical coins not only act as an investment but they are actually considered as pieces of art with a rich historical background. Once named “The Hobby Of Kings”, these coins can provide an insight into a particular time period, so you are quite literally holding a piece of history.

And….the coins are affordable

Investing in historical coins is more affordable than what you might have thought. Some coins are globally liquid, historically significant, and popular, yet remain remarkably affordable.

4 strategies for investing in historical coins

Like with any other investment, you need to spend time getting to know the market. Here are some strategies to help you get started:

1. Investigate before you invest

If you're thinking of investing in collectible, historical coins, we have 1 word for you: research. Read articles from qualified websites, look at forum posts. This will enable you to identify quality coins at fair market value… and make calculated decisions.

2. Buy only certified coins

Scams generally involve false claims about grading and current value. Buy from respected dealers, who have direct links with mints or are LBMA associated as you can be sure that they have above-board trading practices.

3. Check buy-back policies

Don’t forget to ask about the buy-back policies, meaning if your dealer can buy back your coin if its condition is the same as when you bought it.

4. Consider tax implications

Some revenue services tag certain gold products as collectibles. And income from their sale may be taxed at a higher rate than other investments. Check with your national revenue services for more information.

We hope you are now ready to invest in historical coins, an investment that can produce attractive financial returns.