How to Protect You Rare Coins for the Long Term
If you have decided to invest your money in rare coins instead of other types of financial investments, then you may be concerned about the way that the coins will hold their value. In general, coin collectors spend about $10 billion each year on coins, and a typical rare coin will be worth several times its face value within a short period of time. With so many people interested in the hobby, it is usually easy to find a buyer for rare coins when you are ready to trade your collection for cash. However, you need to make sure your coins remain in great shape for the entire time that you store them. Keep reading to learn about some important storage tips.
Use the Right Holders
If you have some common coins that you have invested very little money in, then you may want to store your coins in coin albums or cardboard holders. This is sufficient enough to keep your coins in good shape. However, if you have a rare coin, then these albums and holders do not offer enough protection. For example, if you have purchased an uncirculated 1823 bust quarter for $2,000, then this coin's value is directly linked to its high quality and lack of imperfections. If you happen to ding the coin or allow it to tarnish, then the value of the coin can drop to that of a circulated coin, which is only around $100.
For coins that require high levels of protection, purchase hard plastic holders. There are two types of holders you can purchase. Round holders are an option that has a clear plastic front and back that snap around each coin. Most of these holders come with rubber rings that look a lot like washers for plumbing fixtures. The rings fit tightly around the coin's edge to keep it from moving within the holder.
The other type of holder you can buy is a slab holder. Slabs are thick plastic rectangular holders that snap over the coin. A small space sits just above it so you can add a label to the holder. The slab holders are similar to the ones that are used by professional grading companies to hold coins after they are graded. However, professional holders do not snap in place. They are instead sealed sonically around the edge to make sure the holder is airtight. Your holder will not be airtight like these sealed holders.
Store the Coins in the Right Space
If you decide to use plastic holders to keep your coins safe, then the holders will be mostly airtight. However, they will allow a small amount of air through the edges of the plastic. This allows contaminants from the atmosphere to come into contact with the coin. Many of these contaminants can cause deterioration. In general, the pollutants and contaminants in the air can contribute to the oxidation of the metal. Also, the water vapor and dust in the air can cause tarnishing and deterioration issues as well. In some cases, the air pollutants can even react with the plastic that keeps the coins safe in their holders.
To make sure that air contaminants and pollutants cannot deteriorate your coins, consider a safe place to store them. Safety deposit boxes are a good option. Most banks and credit unions offer the boxes for an annual fee that is likely between $30 and $75 a year. Some banks will offer discounts or reduced prices if you already have a bank account with the financial institution. If you do get a safe deposit box, just make sure to ask your insurance agent if you need a separate policy for the contents. The bank will not cover the contents, but your homeowner's insurance policy may.
If you do not want to invest in a safe deposit box, then consider a home safe instead. You can find out more by talking to a currency-exchange service in your area.