How Rare Coins Can Fund Your Early Retirement Dreams
Tucked away in a drawer somewhere, you may have the ticket to an exotic, luxury-filled early retirement. Once seen as niche collectibles for hobbyists, rare coins are entering the mainstream as viable alternative assets that can transform average portfolios into fortunes. Whether gathering dust in your jewelry box or tucked in the back of a safe deposit box, everyday coins have the potential for incredible appreciation over time.
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GOBankingRates spoke to leading numismatic experts about how building a coin collection today can yield a sizeable nest egg tomorrow.
Strike It Rich with Rare Gold
“Anyone. And I mean anyone who has been collecting coins since the ’70s, ’80s or ’90s has the ability to retire early, travel the world and afford all the amenities that are associated with luxury,” said Nicholas Adamo, President and CEO of Bullion Shark. “Rare gold coins like the 1927-D $20 gold Saint-Gaudens could have been bought in the ’70s for $60,000 and now are worth well over $3,000,000.”
While gold bullion rises and falls with market prices, rare gold coins offer more stability and upside potential. As Adamo explained, “An 1893-S Morgan silver dollar that could have been bought in the ’70s for just about a thousand dollars would be worth over a million today!” With gold’s meteoric rise from $36 an ounce in the 1970s to over $2,000 an ounce today, focused collectors stand to reap seven-figure windfalls.
According to Adamo, “It’s safe to say that if you bought 100 different coins in the ’90s, 95-100 of them would yield profit and most would be 100% – 1000% up in value. It would be almost impossible not to have life-changing amounts of profits. And this is from the ’90s!” Whether assembling portfolios in recent decades or holding long-term, investors continue seeing massive gains.
Score Big with Silver and Other Denominations
While gold understandably grabs the headlines, rare coins made of silver and other metals can also deliver huge returns. Adamo shared, “Numismatic rarities from the ’90s like the 1889-CC out of Carson City that were bought for $20,000 are worth close to a quarter million dollars today. An 1896-S Barber Quarter in the ’90s that was bought for $2,000 is now worth close to 45,000 dollars.” Even modern numismatic pieces are appreciating at lightning speed, like coins issued after 2000 that have realized 500% gains.
“Yielding much better results than the stock market,” Adamo said. “In addition to the great financial results, when collecting coins you get to own and hold a rare and beautiful collectible. I like to think of myself as the caretaker of my coins as I know they will be in others hands long after my time.”
Perfect Portfolio Diversification
While no investment comes without risks, adding rare coins to your broader portfolio provides tangible assets to balance stocks and bonds. The built-in diversity acts as a hedge against inflation and financial market volatility that can jeopardize retirement timelines.
Ian Russell of Great Collections shares specific examples of high-value coins that have gone on to sell for over seven times higher than the normally expected price at a successful auction. He mentions a 1953 Lincoln cent graded MS-67 RD guided near $235, yet Great Collections sold it for $1,944. A 1927 MS-67 Saint-Gaudens double eagle outperformed its $20,000 book value by selling for $133,875 with a green CAC sticker.
Never Too Late To Start
According to Adamo, “Just now I am helping to liquidate a coin collection that was assembled in the 2000’s and our happy client is seeing his couple hundred thousand dollars beget millions. Collections that I have contributed to from 2017-2020 have more than quintupled in price. Yielding much better results than the stock market.”
So even those who have only recently begun assembling collections are realizing large returns in fairly short periods. The key is focusing on high-quality, investment-grade coins with strong potential. With the right guidance and strategy, amassing valuable portfolios to fund retirements is within reach, even for novice collectors.
More Than Just Money
“In addition to the great financial results, when collecting coins you get to own and hold a rare and beautiful collectible,” shared Adamo. “I like to think of myself as the caretaker of my coins as I know they will be in others hands long after my time. There is a very good reason collecting coins is commonly referred to as ‘the hobby of kings.'”
Rare coins appeal to our sense of history and beauty as objects of art and vessels of culture. Building intimate connections with tangible pieces of the past offers rewards beyond dollars and cents. As stewards of tiny metal treasures, collectors derive satisfaction from preservation and storytelling — leaving a legacy for future generations.
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This article originally appeared on GOBankingRates.com: How Rare Coins Can Fund Your Early Retirement Dreams
