They are highly portable, easy to store, and made of inherently valuable precious metals. They feature beautiful, intricate designs considered works of art in their own right. They combine sweeping tales of politics, war and royalty with a connection to the real people who handled them hundreds (or even thousands) of years ago.
The rare coin market is supported by an industry-standard grading system and more than a century of available pricing data. This allows both collectors and investors to purchase with a high degree of confidence.
Today the global market for rare coins is estimated to be worth $17 billion. And by 2025‚ experts expect the number of collectors and investors around the world buying rare coins to exceed 200 million.
This creates a consistently growing demand for a highly limited supply. For example, estimates suggest that a mere 2% of all US coins ever minted are still in existence. That figure decreases exponentially when it comes to other categories such as ancient world coins.
As with most categories in collecting, the rare coin market has benefited greatly from the recent rapid expansion of online sales, attracting a broad new demographic of collectors.
In 2022, leading coin auctioneers in the US and Europe (including Heritage and Spink) recorded record results and growth of more than 20% over the previous year.
And this strength is also clearly illustrated by the performance of individual coins.
For example, in 2014 a 1937 Edward VIII sovereign sold at auction for a then-record £533,200. And just six years later in 2020 it sold again privately for £1 million – marking an 87.5% increase in value over just six years.
But this market growth isn't merely a recent trend. The Knight Frank Luxury Investment Index reports the value of coins as an investment asset has increased by 72% over the last 10 years. That compares with a 25% rise in the FTSE All Share Index during the same period. Going back even further, between 1977 and 2022 rare coins offered an average 9.5% annual return. Over the same 44-year period, gold produced an average annual return of 5.6%.
Figures clearly show that the rare coin market has consistently outperformed more traditional investments regularly for decades. They offer you a fascinating, powerful alternative addition to your diversified portfolio.
In good company.
With a list of passionate coin collectors which includes Caesar Augustus, King Louis XIV, Thomas Jefferson, King Farouk of Egypt and Wayne Gretzky, you'll be in good company.
In 2014 a 1537 Edward VIII sovereign sold at auction for a then-record £533,200. Six years later in 2020, it sold again privately for £1 million marking an 87.5% increase in value for only six years.
Henry VIII (1526-44) Gold Soverign (15.32g)
Knight Frank Luxury Investment Index
The chart below demonstrates the performance of a weighted basket of 10 collectibles against UK Housing Prices, the FTSE100 and Gold over a period of 10 years. Collectibles have achieved long-term growth in a steady climb. And continue to be a choice option for high-net-worth individuals and their families.