Bellevue 425-454-1283 · Lynnwood 425-672-2646 · Issaquah 425-392-0450 · Tacoma 253-328-4014
Stocks, bonds, real estate, cryptocurrency and… rare coins? Could collectible coins be a part of your investment portfolio in 2025 and beyond?
The idea is worth exploring. Historically, returns on rare coin indexes have actually outpaced real estate, bond and equity returns since 1970. And in more recent years, we’ve seen an uptick in demand for ultra rare coins in both the secondary market and auction marketplaces.
This guide will explore investing in rare coins and how it might fit into your investment strategy.
Disclaimer: The following is for informational purposes only and should not be considered investment advice. Consult with a qualified investment professional to come up with a sound strategy to meet your personal goals.
While past results do NOT indicate future returns, it can still be helpful to conceptualize how each asset class has performed in the past.
Rare coins are a complex asset class because of course, each specific coin and coin category has had vastly different returns over time. Fortunately, there are a few rare coin “indexes” that we can look at.
Rare coin indexes function similarly to stock market indexes, in that they track the combined performance of a basket of rare coins over time. This essentially gives you the average performance of these coins over time.
For example:
PCGS, a popular coin grading service, maintains the PCGS3000® Rare Coin Index. This is an index of 3,000 popular rare coins that has been tracked by PCGS since 1970.
Since inception, the PCGS3000® has had cumulative returns of around 7,205%, or approximately 8% compound annual growth rate (CAGR).
This lags behind the S&P500, a popular stock market index of America’s 500 largest publicly traded firms, which has had closer to a 10.9% CAGR over the same period.
While the index lags behind the S&P500, it has substantially outperformed real estate, corporate bonds, gold, and other asset classes.
A much smaller index of 10 of the most famous investment-grade coins, dubbed the Ultra Rarities Index, has performed even more impressively. Since inception the index has had cumulative returns exceeding 20,000%.
Of course, the value of each individual coin over time varies dramatically. Some have been fantastic investments – others, not so much. Which highlights one of the difficulties of investing in rare coins: Investment selections matters a lot. There’s no simple way to invest in these “indexes” like one can with a stock market index.
Investing in rare coins requires a bit more effort than buying stocks or bonds. Generally speaking, you’ll want to work with a trusted and knowledgeable coin dealer or an investment advisor that is familiar with the rare coin market.
If you’re a knowledgeable coin expert yourself, you could certainly invest independently by going to coin shows, keeping an eye out at your local coin shops, or shopping online at trusted vendors and auction houses. For very high-end transactions, auction houses like Heritage Auctions and Stack’s Bowers are trusted sources.
If you live in the Seattle area, Bellevue Rare Coins can be your trusted partner in buying and liquidating rare coin investments. We’ve been the Seattle-area’s trusted coin dealer since 1979.
One huge factor in investing in rare coins is making sure you’re getting an authentic coin.
To do this, work only with experienced and trusted vendors. Buying on third-party marketplaces can be quite risky due to the prevalence of counterfeit coins and rare coin scams. Follow these tips for buying rare coins to learn more.
Coin grading firms like PCGS and NGC take in rare coins from the public and assign numerical grades to them, based on their condition. The grading process also includes authentication, and coins are then encapsulated in protective holders.
While fake graded coins do exist, grading does offer a level of protection. High-end graded coins will have serial numbers that make it easier to verify their authenticity. And in some (but not all) cases, graded coins can be easier to sell.
Rare coins are certainly not a short-term speculative asset class. They are harder to sell compared to liquid assets like equities, and values can therefore be more volatile. When investing in rare coins, it’s helpful to have a long-term plan in mind.
For related reading, check out our guide on investing in precious metals like gold and silver.
