Yahoo Finance 5 Reasons Not To Sell Your Rare Coins at the End of 2023
The expensive holiday season is in full gear, and tight budgets are forcing people to get creative with where they hunt for extra money. If you have a rare coin collection, it might look like the key to starting the new year without an insurmountable mountain of credit card debt. But you should think twice before turning metal money into paper money in the closing days of 2023.
Related: 11 Rare Coins That Sold for Over $1 Million
Find Out: 3 Things You Must Do When Your Savings Reach $50,000
“There are several reasons people may want to wait a little longer before selling rare coins or precious metals,” said Dr. Michael Fuljenz, president of Universal Coin & Bullion in Beaumont, Texas.
Known as America’s Gold Expert, Dr. Fuljenz received the 2021 American Numismatic Association (ANA) Dealer of the Year award. A former ANA grader, authenticator and seminar instructor, Fuljenz is an anti-counterfeiting and numismatic fraud specialist who has served as a consultant to the United States Mint, Federal Trade Commission (FTC), Smithsonian’s National Museum of American History, Texas Attorney General and Royal Canadian Mint. He was instrumental in solving several high-profile cases, including one that involved a coin in China that violated the United States Protection Law.
The recipient of more than 60 awards from the National Coin & Bullion Association (NCBA), Numismatic Literary Guild (NLG) and Crime Stoppers of Beaumont, Fuljenz was a numismatist columnist and is a contributor to “A Guide Book of United States Coins,” also known as the “Red Book.” He also teaches counterfeiting and numismatic crime seminars and has held numismatic offices since the early 1970s.
Here he shares five reasons, in particular, that combine to make a good argument against trading your rare coins for cash in the waning weeks of 2023.
You’re Swimming Against the Supply-Demand Current
In the world of numismatics, the ebb and flow of supply and demand are cyclical and seasonal — and thanks largely to tax-related timelines, December is not the season for selling.
“Most dealers try to reduce their inventories at the end of the year for various reasons, including state taxes on inventory,” said Fuljenz. “So it is not a good time for a consumer to also be selling their coins.”
Instead, if you have some extra cash on hand, you should be out bargain-hunting among the many dealers who are eager to sell their own coins right now instead of trying to sell them yours.
More: 10 of the Most Valuable Pennies
The Right Time Is Just Around the Corner
Another reason is that you won’t have to wait long for a better opportunity. The seasonal cycle will soon put the advantage squarely back in the hands of sellers like you — right when your first post-holiday billing statements are set to arrive.
“For the consumer, the first three or four months of the new year are often the best time for selling gold and silver rare coins,” said Fuljenz, who explained that dealers typically increase their inventories for the busy spring season.
You Could Get More After Gold and Silver Prices Peak
Forty years ago, in 1983, the New York Times reported on a numismatics expert who identified a correlation between price fluctuations in the metals market and the value of coins and other collectibles. Although rare coins are worth far more than the melt value of their constituent metals, buyers were willing to pay more for them when gold and silver prices were up and less when the price per ounce dropped.
But coin values — and even that of stamps and other unrelated collectibles — typically lagged behind metal market volatility by about four to six weeks.
Four decades later, the pattern still holds. “With the recent surge in gold and silver prices and predictions of continued increases for 2024 in the precious metals market, I recommend holding off on selling,” said Fuljenz.
Coin Collections Can Protect Portfolios From Rising Prices
Inflation has fallen dramatically from its 9%-plus pandemic highs last year, but prices are still rising faster than the Fed’s target rate of 2% — and the very coins you’re looking to sell might hold the key to protecting your money’s purchasing power.
“Gold is a hedge against inflation and serves as, sort of, an insurance policy for the rest of your investment portfolio,” said Fuljenz.
But here, too, your collection’s value is about more than just the metal from which your coins are made. For example, gold coins are a famously reliable store of value, but according to Blanchard & Co., a rare coins and precious metals firm, “Rare coins are the best hedge against inflation.”
Election Years Are Good to Sellers
Finally, coin collections and other hobbies offer a distraction from the anxiety-inducing 24-hour news cycle and the gloomy, polarizing bombardment it delivers, the political events coming next year might dissuade you from selling in 2023.
“Gold and silver typically rise during a presidential election year,” Fuljenz said.
More From GOBankingRates
Money Expert Rachel Cruze Recommends Buying These 10 Used Cars for Under $10K
11 Uncommon Investments That Can Actually Make You A Lot of Money
5 Fastest Ways to Raise Your Credit Score Without a Credit Card
This article originally appeared on GOBankingRates.com: 5 Reasons Not To Sell Your Rare Coins at the End of 2023
