Playbook #012: Rare Coins (Numismatics)
🖼️ The Big Picture
What do J.P. Morgan, Wayne Gretzky, and Nicole Kidman have in common?
Besides being some of the very best at what they do, they are all known to be avid numismatic coin collectors.
What’s a numismatic coin? Well, as opposed to “gold bug” investing where you stockpile gold and silver in a safe in case Zimbabwe-style hyperinflation hits, numismatic (rare and collectible) coins are more similar to investing in wine, art, or luxury watches. Their value comes from how rare they are: the condition they’re in, and with coins specifically... the “set” they’re in.
A few key things to know about collectible coins and sets:
- Type Sets contain coins with the same characteristics, such as design, year, designer, historical period, or denomination.
- Series Sets have a coin from each date and mint from a particular series, such as a set of Morgan dollars from 1878 - 1921.
- Key Date Coins are from an important date in history, and are the most expensive and difficult to obtain. They’re the most important coins in your series, and will usually appreciate in value faster than other coins in their series.
- Building a “Set” makes your collection more valuable, easier to sell, and enjoyable to showcase. You can register it online and compare it to other owners' sets.
Numismatics used to be known as the “hobby of kings” because they were so difficult and expensive to acquire. However, with the growth of the internet, they’ve been made far more accessible to the masses.