How Collecting Rare Coins Can Help You Build Generational Wealth
Written by
J. Arky
Edited by
Ashleigh Ray
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One of the key principles of economics when it comes to examining wealth and how it is accumulated is to look at what’s known as “generational wealth.”
That is, what monetary assets, investments and property will be handed down, from one generation to another, so that the wealth stays within the family. This is how legacies are built within the global economy, lasting for hundreds of years, if not longer.
It might not seem like the most direct way to create generational wealth, but coin collecting and selling is actually a very lucrative business, if you know what to do and do it correctly.
There are lots of sought-after and high-priced coins floating around the world-from pennies, nickels, dimes, and quarters that have only increased in value over the years, selling for top dollars in today’s auctions.
Why Coin Collecting?
John Feigenbaum is the Executive Director of the nonprofit Professional Numismatists Guild (PNG) and a lifelong coin collector. Who introduced him to this lucrative hobby? His father, naturally.
“My father was a coin collector,” said Feigenbaum, explaining how collectors, like his father, “get the bug” and “can spend millions on the hobby.” His father had a lifetime bug for buying, collecting and selling coins.
Feigenbaum attended coin shares or conventions with his father on weekends in the late 1970s. It was there that his father would sell duplicate coins from his collection. However, it was not just the financial gain that lured Feigenbaum’s dad into the coin world, but the simple act of being able to sell something that he valued personally, as well as monetarily.
“What’s more exciting than collecting something than selling something?” Feigenbaum rhetorically asked, describing the special feeling coin aficionados get when they can buy from A and sell to B.
While coin collecting is an expensive pastime, Feigenbaum said that if done right, it can pay off over time. His family grew up with nothing, and his father could not afford his own collection without selling duplicates.
“It was definitely generational wealth,” said Feigenbaum, who eventually turned into a coin collector himself, selling at 1894 S-Barber Dime for $2 million.
This coin is considered to be one of the rarest of the rare and an evergreen top 5 U.S. minted coins where only 11 are currently known to exist. Feigenbaum has had the opportunity to sell at least 3 of these dimes.
For those hoping to build generational wealth via coin collecting, Feigenbaum noted that “coin collecting is still a little under the radar,” when compared to other hobbies.
10 Best Coins for Future Value
Ira Goldberg is a long-time coin collector, as well as the co-owner of Goldberg & Collectibles, Inc. in Los Angeles, California, and a former President of the Professional Numismatists Guild (PNG). Goldberg shared with GOBankingRates his top five U.S. and five world and ancient coins with future value. Goldberg noted that anyone who comes across these coins should have them authenticated by either Numismatic Guaranty Company (NGC) or Professional Coin Grading Service (PCGS) and no one else.
U.S. Recommendations for Future Value
5. 1909-S VDB (initials of designer Victor D. Brenner) Lincoln cent
4. 1937-D 3-legged Buffalo nickel in grades Extremely Fine-40 and better
3. 1878-CC Morgan Dollar, Mint State-63 and better
2. 1911-D $2.50 Indian
1. 1907 $20.00
World and Ancient Recommendations for Future Value
5. The Spanish Milled Dollar “Pillar Dollar” piece of eight
4. English Gold Sovereign of Queen Victoria 1837-1901
3. France Gold 20 Francs of Napoleon Bonaparte 1804-1814 (Mint State examples only)
2. Alexander the Great of Macedonian Empire 336-323 BC (Superb quality only)
1. Roman gold Aureus or silver Denarius of Augustus and/or Tiberius in extremely fine condition or better
Closing Thoughts
Feigenbaum said that knowledge is key for anyone looking to get into the coin collecting game and build generational wealth.
“Go to some coin shows. Find a trusted dealer and be loyal to that person,” he suggested. Seek out a dealer who has been around a long time, understands the changes in the market and is not a high-pressure salesperson.
Feignebaum also suggests not buying coins that are trendy or have been recently produced in the last two decades. “The best way to build long term value is to buy classic coins, prior to the 1980’s, going all the way back to the 1700s,” he said.
“Don’t try to do it alone,” advised Feigenbaum. “Buy the best coin for the grade you can afford.”
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