No matter how much money you are earning, if you are saving any, it’s always a good idea to invest it in a good scheme. Although most people lean towards popular investment options like mutual funds, fixed deposits, and even gold, there are many less-popular markets too that can offer high returns. Numismatics is one of them. But the question is, is investing in rare Indian coins a good investment? Let’s find out.
Investing in Rare Indian Coins
Most people get into coins’ collection as a hobby, and later become investors and traders. Believe it or not, collecting old coins and currency notes can be a good investment especially if you are passionate about the work and love to gain knowledge on the subject. In fact, some experts believe that numismatics can get much higher returns than traditional investments.
People often ditch the idea of coin investment before getting all the details first because they think it’s meant for only those who have lots of money to spend. However, truth is that you can get into Indian coins and currency collection even with a small investment. For instance, the starting price of a commemorative coin is no more than a few thousand rupees. Thus, any salaried individual who has a decent income can start investing easily.
Return on Investment
The numismatics market used to have a limited reach in India. Only a small percentage of the population was active in the industry which is why the returns weren’t that high either. However, in the past few years, the market has picked up the pace, and how fast! The prices of rare and antique Indian coins have increased considerably today which is why it’s the perfect time to jump in with both feet.
To take an example, the price of the “last pure silver coin” i.e. the 1939 one-rupee silver coin was selling for around Rs. 7.5k in 2007. However, if you will check the current rates, you won’t find a price lower than Rs. 3.5 lakhs. In the same way, the British India Victoria Gold Mohur was selling for around 35,000 in 2007. Today, the same coin is flying off the shelves for Rs. 2 lakh a piece.
Tips for Beginners
If you are new to numismatics, then there are a variety of things you must understand before you start investing. Remember, it’s just another type of investment like mutual funds or stocks. So, the more you are informed, the higher are the returns you can expect.
The following are some tips on how to get started with rare coins’ collection:
- Instead of purchasing coins of various periods and categories, it’s better to stick with a particular theme. For instance, it could be the coinage of the Guptas Empire or coinage of the Rajputs, etc.
- You can purchase books on Indian coins to increase your knowledge. You can also find plenty of information online.
- Remember- the age of a coin isn’t the only thing that affects its value. It’s physical condition also plays a big role in the pricing. In fact, a relatively new coin that’s in mint condition can easily sell for a higher price than a much older coin that’s in a poor condition.
- Instead of approaching coin dealers or auction houses, you should buy commemorative coins directly from the government. When the government issues these coins, it offers bookings to the public. You can either book your coins online or send a demand draft to make the purchase.
- Instead of spending on rare coins on a whim, create a monthly budget and spend on the coins by staying within this budget.
- There aren’t many known coin grading agencies in India. Thus, you will have to verify the authenticity of coins on your own which is why it's highly recommended that you educate yourself as much as possible to avoid becoming a victim of a fraud.
Ancient and rare Indian coins can be good investments to diversify your portfolio. Since the supply is still quite less and demand quite high, you can start collecting high-quality and rare coins for massive long-term gains. However, don’t expect good short-term returns. Also, coin investments aren’t high in liquidity. So, adjust your portfolio accordingly. Good luck!