Consumers in states other than California should refer to the laws of their state. Buying rare coins can be a good investment and a satisfying hobby. It is also risky, especially for a newcomer, and it carries no guarantee of a profit.
Buyers can lose most of their investment if they become a victim of fraudulent sales practices.
The marketplace for coins is sometimes troubled by liquidity problems of either the coin or the market. Simply put, a coin is considered to be illiquid if the investor has difficulty finding a buyer, making it impossible to convert it into cash. Coins may not be an appropriate investment choice for someone who needs the assurance of being able to secure a fair price for their investment in a short period of time. Coins may also be an unsuitable investment from the standpoint that they do not pay interest or dividends, must be held onto as an investment for several years, and cannot be depended upon to appreciate rapidly. For these reasons, some firms advise against placing more than 5 to 10 percent of your total portfolio in rare coins.