Believe it or not, the world of coin collection, known to the initiated as numismatics, is on fire in the investment world. Just last year, a 1933 Double Eagle gold U.S. coin turned heads when nabbed a captivating $18.9 million in an auction at Sotheby’s. Not many would think a coin could fetch such an enormous price, blowing past previous records like they were yesterday’s news.
According to David Tripp, Sotheby’s special coin consultant, the Double Eagle sale wasn’t just a blip on the radar. Instead, it sparked an explosion in its field, with high-grade coins scoring previously unimaginable prices.
Cryptocurrency Veterans Joining the Numismatic Kerfuffle
In what some may say is a surprising twist, those minting their fortunes in the digital rush of cryptocurrency are stashing their dough in a much older form of currency—rare coins. Mark Salzberg, Numismatic Guaranty Company’s chairman, observed this trend, suggesting these new investors are looking for something a bit more tangible than their digital assets.
Vintage Coins — The Low-key Investment Goldmine
If you’re wondering just how much rare coins have appreciated over time, consider this: according to Professional Coin Grading Services, key rare coins have seen a 6,315% increase in price since 1970—fancy that!
The Unexpected Allure of Numismatics
Why are these collectors pining for coins – particularly gold eagle coins – over other flashy collectibles? Think about it — many of us have memories of pocketing old pennies and nickels as keepsakes from our childhood. Plus, most vintage coins are made from precious metals like gold and silver—meaning unlike a comic book or Barbie doll, they inherently hold some material value. And let’s not forget the ease of storing coins—you don’t need a fancy garage or humidity-controlled cellar, just a trusty shoebox will do!
Navigating the Wide Numismatic World
Here’s what’s surprising – the diversity in the world of coin collection is far from short. From U.S. coins to foreign currencies and even ancient coins, collectors have their pick. Recently, Chinese coins have been seeing quite a bit of action, according to Kevin Foley of the NY International Numismatic Convention.
Long story short, while all categories are seeing price appreciation, the bubble could burst, echoing the ’80s coin market surge and crash, as Louis Golino, a known observer of the coin market, warns. Therefore, it may be wise to appreciate the intrinsic value of coin collecting beyond just the financials.
Coin expert John Feigenbaum puts it aptly, “If you buy world coins, you understand how civilization developed”. So next time you turn over a coin in your hand, take a moment to consider the history, culture, and potentially, the huge wad of cash it might be worth!