The simple answer to the question “what is an investment grade coin” is that it is a coin worth investing in, i.e. it will likely be a good holding over time.
Firstly it is important to ask the questions:
How rare is my coin and how often does it appear on the market (=Supply)?
What is the market's current appetite for my coin (=Demand)?
Typical investment coins will be high quality coins that are relatively rare in occurrence. While they often come at a high monetary value, high value is not automatically the same as investment grade. There are many types of investment grade coins which can be bought for hundreds rather than thousands. Exceptional quality in the lower denominations and copper coinage would be examples.
The 1838 gold sovereign in average ‘Fine’ grade has doubled in price since 2007 and can now be bought for around £800. An 1850 gold sovereign in VF has returned 500 % in 10 years, now priced around £325. Here we must take into account the increase in gold price which is around 300 % in 10 years.
Want to know which coins produced the highest (and lowest) returns? Follow this link...