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Frequently Asked Questions About Collecting Rare Coins |
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- Why invest in rare coins
Rare coins, unlike other investments, offer a track record of performance over 2500 years.
Buying rare coins will increase your private wealth. Rare coins are one of the highest performing investment categories in the world today. They give investors high returns, which have eclipsed in most cases the returns that could be gained from other investment mediums such as shares, gold bullion, property and many others. These are also the true global investments that can be sold anywhere in the world at any time.
- What is a rare coin?
A rare coin is a coin that is accepted world wide as being a rarity in the country of its original minting. In order to be regarded as rare, the coin must have been readily accepted as a currency, or as money from the day it was minted and is available in very rare numbers. Rare coins are the highest appreciating coins of all the different coins in the world. Bearing this in mind, every investor and collector who understands the coin market ensures that the vast bulk of capital placed into coins is placed into rare coins.
- What determines the value of a rare coin?
The most important factors determining the value of a rare coin are the two main criteria driving any market namely: demand and supply. Other factors determining the value of a rare coin are the number of specimens available, the quality and grading, and any famous person or historic event that the coin may be related to.
- Does the gold price affect the value of rare coins?
The gold price has absolutely no effect on the value of rare coins whatsoever. The single "9" is South Africa's rarest coin and has an estimate value of 40 million Rand whilst the value of this coin's gold content is a mere R240-00.
- How liquid are rare coins?
Rare coins have a similar liquidity to that of Unit Trusts or Shares. When selling a rare coin it is placed up for sale on "mandate". Once the coin has been listed into our computer-trading screen for sale, all of the brokers at South Cape Coins are notified. The brokers contact their clients and offer the coin for sale until sold.
- How long should I keep my rare coins before selling them?
Rare coins never reach a peak; they can only become progressively rare as time passes. Buying a coin and seeing its price increase many times against its purchase price after a short period of time, you may sell it afterwards to see the coins price continues to increase in value for several years more. Where upon you would feel that you were foolish to sell. The answer to this question is therefore that you should hold them as long as you can.
- Who will keep me informed of my investment in rare coins?
Each and every client of South Cape Coins has a broker who is instructed to periodically call you and give you the latest value of your coins also discussing other matters that relate to your coins.
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