• Jan 14, 2017
  • by Michael Z

I had an interested eBay party who put in an offer on one our of top end collector sets this week unable to comprehend why his bid at a little over spot was turned down.  First of all, spot is not representative of retail price for finished products.  None of the costs of refining, design, manufacture, packaging, dealer margins, shipping/insurance, etc... are reflected in the daily futures price.  Going even further for collector coins, because of the low production, exotic finishes/materials and innovations in minting, there are quite high premiums inherent in these products, especially in what we describe as the "ultra luxury class" collector coins.

Art in Coins does not promote collector coins as investment in the base metals.  While there is definitely precious metals "exposure" in these products, the high price per ounce means that they do not appreciate (or decline) in the same manner as other products do in regular market conditions.

Collector coins should be considered in the same manner as fine art.  There's very limited availability and the marketplace or audience is far smaller for them than bars or rounds or government issued legal tender coins.  Collector coins do appreciate over time but it has more to do with collector demand than an increase in price of the base metal.

For those just starting a precious metals investment, we always advise on a (physical, in hand) position of basic gold and silver bars or rounds.  This is the absolute lowest cost per ounce possible and are the most easily exchangeable when necessary. If you reside in a country undergoing a currency or banking crisis and you need to redeem or barter some gold or silver...  your bars and rounds will be much easier and far more cost effective in exchange than collector coins. 

Collector coins are for those passionate about rare and unique coins with extraordinary presentation (and bragging rights).  They are best suited for investors who already have a strong position in the base metals and now seek the ultimate in minting artistry and innovation... 

Happy collecting!

Art in Coins