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From Lindsey Hough, member liaison, the Wealth Builders Club: For an expert opinion on rare coins and collectibles, I sat down with two coin experts: Van Simmons and David Hall (co-owners of David Hall Coins).
In 1986, Simmons and Hall co-founded the Professional Coin Grading Service (PCGS), which revolutionized the coin business.
Together, they have over 70 years of experience in this $10 billion industry.
In the excerpt below, they reveal how to make collectible coins part of your investment portfolio…
Lindsey: How much of your net investable wealth should you allocate to collectibles like coins?
David: There’s no specific answer. The size of a person’s net worth is a factor, and appropriate percentages would change with net worth size. You should buy whatever amount fits your comfort level. And if you’re a beginner, this should be a very small amount.
A serious start would be in the $5,000-10,000 range. You can buy some important investment-grade coins for that size portfolio. The right coins should perform well in the next decade or two.
Lindsey: Are there resources you can recommend to help people get started?
Van: If you’re into collectibles, there’s a book called SWAG: Alternative Investments for the Coming Decade by Joe Roseman. “SWAG” stands for “silver, wine, art, and gold.” It’s a good, easy read that explains the mentality of investors and collectors in tangible assets.
There’s also a book called Ship of Gold in the Deep Blue Sea by Gary Kinder. It was on the best-seller list for over a year. It’s fantastic and fun to read.
Lindsey: What are some “rules to live by” our readers can take away with them?
David: In the coin market, value depends on rarity, importance, and condition. Look for coins with high marks in all three of those factors.
In general: 1) Gold coins are more valuable than silver coins… which are more valuable than copper and nickel coins; 2) Larger-denomination coins are more valuable than smaller-denomination coins.
But rarity, importance, and condition ultimately drive the present and future values.
The best thing a novice can do in the rare coin market is find a dealer they trust. Ask a lot of questions. Start small. Check results.
All Wealth Builders Club members can read the full interview inside the Club. Look for Collecting 101 Essay No. 6: “Fill Your Own Treasure Chest.”