Commemorative Coins: a Buying Guide

Unlike bullion coins, commemorative coins have the added value of being minted specially to mark a certain occasion, person or institution of national significance. As such, commemorative coins, when chosen correctly, can not only be a great addition to your collection, but also to your investment portfolio. If you are a beginner to the world of coins and are considering investing in bullion or commemorative coins, it is important to know the following things.
With coins, it is all about being patient. Unlike stocks and shares, precious metals are usually a good investment over the longer term. Silver prices may be wildly fluctuating on a day to day basis, but silver has seen a steady growth of over 700% over the last 13 years! This goes to show that with precious metals, it is important to sit tight and be willing to ride the trend.
In the case of commemorative coins, the worth of the coins lays not so much in the precious metal content, than in the rarity and demand for the particular coin. In the world of commemorative coins, it is important to do enough research to understand what is available and what is valuable, before deciding what you want.

Indeed, most people who wish to own a beautiful antique object of historical significance are not simply interested in the monetary value of the coin, but almost invariably want to know more about numismatics in general, the story of the coinage in particular and understand its significance in history.

When it comes to value determined by demand in collectors’ circles, some coins are bound to be out of favor compared to others. It usually makes sense for beginner buyers to concentrate on coins that are not hugely in demand, as these are usually lower in price. Commemorative and other rare coins increase in value with age, so any investment is likely to pay off in the longer term.

There is much more to coin collecting than many of us realize. There are various skills to be learnt, such as coin grading, which can help you understand and determine the value of different coins. If you are considering getting into coin collecting as a hobby, you may want to spend some time learning more about numismatics in general and perhaps learning some skills that could help you become a serious collector.

Some general buying tips apply to you whether you are buying commemorative coins or bullion. Firstly, always buy from a trustworthy trader with a reputation in the market. Unless you want to get ripped off and overpay for your coins, it’s important to be cautious and only go for trustworthy and reputable traders, whether they are online or in person. Traders that are registered with the American Numismatic Association and the Professional Numismatic Guild are always good places to start.

Secondly, verify prices and check they are fair; and thirdly, understand all the fees and extra costs involved in making the purchase. Also understand the paperwork or certifications that will accompany your coins. These are some basic buying tips for buying commemorative coins.