The Best Rare Coins To Look For - MoneyMade (2024)

Coin collecting is closely related toinvesting in commodities likegold andsilver, and investors commonly make the switch frominvesting in hard metals to coins. After all, coins are money, and gold coins have been used as currency since around 550 BC.

One thing that attracts people to coin collecting is that you don’t need to be rich to get started. A well-known numismatist (one who studies coins), John Jay Pittman, amassed a vast collection of some of the most valuable coins that sold for$30 million in 1997 and 1998.

While his collection sold for a fortune, he wasn’t rich and took out a second mortgage on his house to purchase King Farouk’s coins in Egypt in 1954. His winning strategy was focusing on undervalued rare coins, such as American Proof coins, and keeping his collection for decades before selling them. In other words, he was a long-haul coin investor.

While some coins can go for millions, it’s more an exception than a rule, andmost collectors hold onto rare coins for years, just like Pittman. According to the PCGS3000 Index tracking the value of rare coins, the worth of the most valuable coins has skyrocketed in the last year.

The index is currently worth $71,173.31 as of October 10, 2022, compared to $65,156.30 in October 2021. However, it was still far from an all-time high of $181,088.48 in May 1989. This shows that, like the stock market,coin collecting can be volatile.

Likecigar investing, rare coin collecting can be both a hobby and an investment. In fact, coin collecting is considered one of the oldest hobbies in the world. Similar tofine art collecting, the most valuable coins are themselves often thought of as works of art and were even used in jewelry and decorative arts in ancient times. Roman emperor Augustus was even said to have been fond of old coins and gave them out as gifts.

If you want to invest in the most valuable coins, the best way to start is to educate yourself on a particular coin. Start by specializing in a particular coin series or type of collection, like theLincoln wheat penny, Lincoln head copper penny, orMorgan silver dollars.

There can be a lot ofscams and counterfeit coins on the market, so make sure you know what you're investing in and only buy valuable coins from reputable dealers and auction houses. If you can, examine valuable coins in person and know which mint marks to look for.

Try finding coins that are certified by professional coin grading services like theProfessional Coin Grading Service (PCGS) or theNumismatic Guarantee Corporation (NGC).

You’ll also want to keep storage in mind. While coins are smaller and easier to store than, say, acomic book, it’s important to keep your rare coin in special coin holders free of acid and polyvinyl chloride (PVC), which can damage its surface.

Penny hoarder

Flowing Hair Silver Dollar

The Flowing Hair Silver Dollar wasone of the first silver coinsminted from 1794 to 1795 and was also thefirst dollar coin issued by the U.S. federal government. The size and weight are based on the Spanish dollar, which was a popular coin at that time. The coins were produced twice before being replaced by the Draped Bust dollar. In August 2021, a rare flowing hair coin went for $6.6 million at Heritage Auctions.

Justinian coin from 695 AD

Another rare coin is the gold Justinian coin. It's one of the earliest depictions of Christ on a coin minted in 695 AD by Byzantine Emperor Justinian II. The coin wascontroversialat the time because a depiction of Christ on something that wasn't holy violated tradition. These valuable coins are worth a bit, with one coin selling for$19,200 at Heritage Auctions in 2021.

Henry III Gold Penny

The Henry III Gold Penny isone of England's first gold coins issued around 1216-1272. Only a handful of coins are known, making this an incredibly rare and valuable coin. The coin depicts English King Henry III. While only a few exist, they are occasionally found in the U.K. One found by an amateur metal detectorist in Devon, England, fetched a record $873,073 in January 2022.

"Ship of Gold" coin from 1857

In 1857, a postal ship carrying$1.6 million in gold (or $54 million today with inflation) sank off the coast of North Carolina and the crew drowned along with its valuables. In 1986, a discovery group located the ship and found its cargo still intact, including gold coins. Today, many of these coins can go for tens of thousands of dollars, like one in excellent condition that sold for$198,000 at Heritage Auctions in August 2022.

Umayyad Gold Dinar

This gold coin from 724 to 743 AD is one of the most valuable foreign coins coveted by collectors. It'samong the first medieval Islamic coins made of gold issued by the Umayyad Caliphate. The dinars have no images but instead are lined with Kufic inscriptions. They can go froma few hundred dollars to as much as $25,850.

Don’t go rummaging through your pocket change just yet. Many avid coin collectors start by attending coin shows. Private dealers and auction houses tend to be where the rarest coins are found.

Unlike stocks, not every valuable coin is the same. While two 1943 Lincoln head copper coins might look similar, there could be subtle differences that cause one to be worth more. This is the inherent difference between investing in gold coins versusother ways to invest in gold.

You can also find valuable coins on investment platforms likeRally. Rally lets you invest in various kinds of collectibles besides rare coins, such asStar Wars action figures, rarePokémon cards, and evenluxury watches.