2016-06-27 Mon

Famous collector John J. Pittman mortgaged his home to buy rare coins in the 1954 King Farouk Palace Sale. The coins which were then worth hundreds of dollars were sold for thousands of hundreds of dollars in 1990s.

Pittman was never interested in collecting trophy coins. He purchased a Gem Proof 1833 Half Eagle for $635 in 1833 which sold for US$467,500 in 1997 and for nearly $1 million in 2005.

The situation has changed a lot now, rare coins are much more expensive and nobody would want to take such high risks. But the tradition of coin dealers offering credit to collectors still continues.

Experienced collectors warn everyone from overusing credit for buying rare coins as the hobby can sometimes become very addictive which could lead to major financial losses. Even auction houses sometimes offer credit to trustworthy collectors but one must use his/ her credit wisely.

Experts believe that investing in coins on credit is not wise unless it is a very important buy or a fast-appreciating asset. Also, people tend to not bargain when they are offered credit. It is always better to wait for a better time or look for other coins that fit in your budget.