Collecting Coins and Banknotes for Investment Purposes?

It has been a while since I last wrote a post. Minus the Van Tharp article series, which were all posted automatically, it has been about a week since I last wrote anything.

Today, let’s talk about Coins and Banknotes. Is there a way how one can profit from them? Apart from the usual FOREX trading, I believe that it is possible to profit from collecting coins and banknotes. Old coins and banknotes as well as the new ones. In fact, history tells us that is indeed possible. Returns of roughly around 13% per annum. Now, that’s not too bad at all! Of course, as with all other investment vehicles, future performance are never guaranteed.

On top of that, collecting coins and banknotes, in my opinion, gives you a sense of pride in owning a piece of history. It’s great for viewing pleasure too! Also, something to talk about during family parties eh?

Come to think of it, it’s an investment effort that can be treated as a hobby.

Two key problems that I see with collecting coins and banknotes are:

1. Subjectivity in pricing

Due to lack of freely available public information, determining the price of item can be rather hard. For shares, share prices are quoted on the exchange. For coins and banknotes, it is not traded centrally.

2. Liquidity

In terms of selling the coins and banknotes, it won’t be as easy as selling off shares.

Anyway, I’ve bought myself my very first piece of banknote yesterday for AUD10.00. It’s a FINE-condition 1 Ringgit Board of Commissioners of Currency Malaya and British Borneo. It’s from 1953. Peruse the photos below.

My next important task now will be to gather information on how to be a successful coins and banknotes collector.

Till next time folks..


Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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