Ancient Coins as Investment

Are ancient coins a good investment?  Everyone asks this question, and we want to help you understand the potential benefits of investing in rare ancient coins. 

Collectors of ancient coins share a passion for this hobby because they enjoy their history and beauty.  They collect for the joy of owning coins that were once touched and traded by the ancients - you are holding history in your hands.  But even experienced collectors want to know how much their coins are worth, and if their price will appreciate in the future.  So, here is some information and possible reasons you may want to invest in ancient coins:

1.  Growing market.  Although ancient coins have been around for thousands of years, it wasn’t until very recently that grading companies began certifying them.  Also, the internet and the proliferation of online sales/auctions have helped to spread the word about ancient coins.  As a result, thousands of new collectors and investors have discovered ancients, and are actively participating in this exciting, new market.  Those looking to acquire truly rare, ancient coins will often find them to be remarkably affordable in comparison to the multitude of six-figure prices that exist in the modern/U.S. coin market.  In our opinion, as the ancient coin market continues to grow, it won’t a take a lot of buying pressure to push prices higher.  

2. Fixed supplies.  Many countries now have strict laws prohibiting excavation and export of ancient coins and antiquities.  When an excavation takes place and an ancient coin/artifact is uncovered, these finds are not leaving the country where they were found or going to coin dealers. The Department of Antiquities will seize the find as a "national treasure," which is then transferred to museums.  Likewise, the U.S. now has certain laws restricting importation of antiquities.  As time goes on, we expect far less material to enter the market due to these facts.  We have noticed lately that truly great coins are few and far between, as the ever-increasing demand puts pressure on the extremely limited supplies available.  We expect this trend to continue.

3.  Historical importance, aesthetic value and long-term value.  Ancient coins are real, tangible links to our distant past and the earliest days of commerce.  They are timeless testaments to past empires and civilizations, they possess historical significance, and they can usually be placed within a specific historical context.  Ancient coins also possess great aesthetic qualities, with some being reckoned among the greatest surviving works of ancient artists.  Imagine the thrill of owning something beautiful that was made over 2,000 years ago and preserved in immaculate condition.  The opportunity to own coins from the time of Alexander the Great or Julius Caesar may seem impossible, but in fact that dream can become a reality.  Every coin that RareAncientCoins.com handles tells a unique ancient story.  Further, many first time clients are shocked to find out that ancients can be acquired at very affordable prices.  Owning historical objects can be a wise long-term investment (in our opinion), and recent sales in objects of art and history have shown this to be true.

4.  Discreet, tangible assets.  Coins are material assets and held in the investor’s possession, as opposed to being a "paper" or theoretical investment subject to third party control.  Coins are highly liquid investments and are easily portable.  They are small and can be easily stored in a safe or bank deposit box.  They can be easily transferred from one individual to another, and private sales can be agreed without recourse to a third party.  They can be bought and sold in many countries, offering excellent potential to minimize tax liabilities.  Total discretion may be ensured both at the point of purchase and sale.

5. Potential for both short and long term gains.  For many, the ancient coins market represents an extremely attractive alternative to investment in other more traditional assets or indices, and indeed coins have often greatly outperformed stocks or bonds.  They have been collected for centuries, and have demonstrated a long-term trend of rising values.  The Knight Frank Luxury Investment Index reports that the return on rare coins over 10 years to the end of 2017 was 182%, easily beating art (78%), stamps (103%), jewelry (138%), watches (69%), furniture (-32%) and the S&P 500 index (80%).  As a buy and hold asset, investors could certainly do worse than coins, which may provide a shield especially to the current volitility of the stock markets.  Short term gains are also possible through careful selection, exploiting either superior knowledge or imperfections in market information.

6.  Low correlation to other markets.  The market for ancient coins is international, and they are assets that have low correlation to other more mainstream investments.  Coins are well insulated against volatility or downturns in other markets.  Indeed, ancient coins showed great resilience during the 2008-2010 financial crisis.  The coin market itself is very stable, and not subject to the constant fluctuations that characterize most other commodity investments.

7.  Low maintenance.  Coin collections, unlike stock portfolios, do not require constant attention.  Unlike fine wines, stamps or even paintings, coins require little in the way of care or maintenance once purchased.  They do not require a significant investment in a storage environment, and will not require expensive restoration or cleaning.  Gold never tarnishes; silver only improves as it slowly develops iridescent colors and desirable grey toning that comes with age; bronze has a thick patina developed over thousands of years that protects the coin.

Here are some other articles about investing in rare coins:

New York Times: Antique Coins a 'Big Money Business'

Armstrong Economics: Ancient Coins as Investment

World Internet Numismatic Society: Ancient Coins as an Investment?

USGB: Rare Gold Coins from Roman Empire Smash Auction Records

Gibraltar Coins: Is it time to add ancient coins to the portfolio?

Gold and Energy Advisor: Investing in Ancient Coins

The Economist: Numismatics Outperforms Other Investments

Coin Week: Investing in Rare Coins 

Obviously, investing in ancient coins (like any other investment) is speculative in nature and involves a risk of loss.  Investors should invest carefully, obtain advice from professionals, and make independent investigations.  Some of the information published here is from other sources, which we believe to be reliable, but is without our independent verification.  Therefore, we cannot assure that the information is accurate or complete.  We do not, in any way, warrant or guarantee the success of any action you take in reliance on our opinions, statements or recommendations.  You should also note that past performance is not necessarily indicative of future results.  All investments carry risk and all investment decisions remain the responsibility of the investor.