How can coin collecting be profitable?
Coin collecting has always represented a safe investment for all savers and such coin collection is not directly influenced by any instability of the financial markets.
During the last few years, investments in coin collecting have become even more profitable when compared to other forms of investment and as such have an even stronger appeal to savers.
In order to analyze the evolution of the price of coins you should consult the price list of a recent sale or the results of an auction. The rise in the price of coins has involved even the coins that were considered to be less important.
To illustrate: a 50 Lire coin of Victor Emanuel II King of Italy dated 1864, in perfect conservation condition had a price of 59 million Lire in the 1980s (30 thousand Euro), and is today valued to be worth around 300 thousand Euro.
Reasons why an investment in coin collecting is so profitable:
- Return on capital: coin collecting generally realizes a profit superior to the inflation rate, because the numismatic market presents a demand that is considerably superior to the supply.
- Safety: it is possible to preserve your own coin collecting investment in a simply and safely. Numismatics operates within an international market, and every collector has the ability to obtain a certificate of authenticity for all their coins in order to guarantee their effective value.
- Liquidity: every investment in coin collecting may be liquidified quickly. This is because you can easily choose to sell your coins, either directly to your trust-worthed numismatics expert or by public sale. Today in Europe, it is even easier with the existence of the European Union: sellers may choose the most convenient place to sell their coins wherever it may be.
- Management: management costs of an investment in coin collecting are close to zero. All you need to preserve your capital it is a safe-deposit box within a bank; or a safe in your own home, if you prefer to maintain increased flexibility with your investment.
- Taxation: if you buy or sell within a public sale, you only have to pay the VAT (Value-added tax) on the commission to be paid. In addition, it is possible to remain anonymous when investing in numismatics.
How is an investment in coin collecting profitable for private individuals?
For collectors with a passion for coins, it is doubly satisfying to them that they are able to realize significant profits from their "hobby". However, it is important to manage the investment with care and a long term view, and well as to buy and sell only with true professionals.
In order to maximize both earnings and enjoyment, it is necessary to respect some important conditions:
To dedicate time and care to investigate numismatics in detail is fundamental so that you can be more knowledgeable when making your decisions.
Every purchase must be made from genuine firms or well known professionals only. Today, with the diffusion of the internet and e-commerce, it is more necessary to proceed with caution when choosing the safest and most reliable retailer.
It is important to remember that a collection can not be created in short time: calm, patience and discernment when making your choices are all needed.
How is an investment in coin collecting profitable for companies?
Companies and organizations also invest in coin collecting. In recent decades great financial and insurance groups have started to invest in arts and coin collecting. Today there are many sectors of numismatics that remain under-quoted and may still retain pleasant profit opportunities.
The following are two such different examples:
Byzantine coins, with more than a thousand years of history, continue to have extremely low quotations on the international market today and have a great amount of room to improve in value.
During the 1970s , XIX century gold coins known as Large Market Coins , (Marenghi, Italian, French and British in origin), retained a high official value of between 40 and 60 % more than the intrinsic value of the gold. In recent years quotations were equal to the value of the gold contained in each coin and sometimes even lower by 2 to 3%.
During this moment of uncertainty and financial turbulence, there remains a profit of 3 to 6 % to be had. This profit margin may easily increase further, and for all the above reasons, we believe that an investment in gold coins, may lead to surprising profit opportunities if they remain perfectly preserved.
When we refer to gold coins, we consider all those coins that have previously been in circulation, remain in large quantities and in are still in excellent condition, a century or longer since their everyday usage came to an end.
Marenghi, Pounds and American Dollars lie somewhere in between real coin collecting and the Large Market Coins. For example, a 20 Franc coin originating from the second half of the XVIII century and in perfect condition, is no longer considered to be a Large Market Coins, but instead to be a part of the true Numismatics.
Therefore the opportunity today exists to buy coins that in the near future may have a much higher value typical of those that make up coin-collections, whilst presently paying only a price equal to its metal value.