Coin Collectors Beware

I recently saw a report about how supposedly profitable it has recently been for investors in old American coins.

Included in the report was information on how some collectors have profited by having those coins regraded. That is a process of getting higher condition evaluations.

I have collected coins and I have studied and written about the ramifications of rarity and condition, along with supply and demand. I will sum up a very complicated investment as simply as I can.

Coin collecting is only for long term investing because of the spread between what the seller gets and the buyer pays.

Regrading of coins is highly speculative. Especially when the coins are taken from hard plastic casings, for evaluation by grading services. This is done hoping for a higher grade. However, the grade could actually be lowered in the process.

I find that coin grade often is too subjective. And only depends on the partisan eye of the buyer or seller.

So, coin collectors, as is the case with all investors, ought to always be beware about advice in the media.