Did you know if you invested in rare coins in 1970, you could have made a 7135% return on your investment? There are many stories in which rare coins purchased by savvy investors (in the 1950's) using only a few thousand dollars, realized hundreds of thousands and even millions of dollars at auction many years later! Almost every country in the world has minted coins. You can collect ancient Roman and Greek coins or more modern US coins, the choice is up to you. Within each country, coin designs have evolved and changed over the decades. Some numismatists choose to collect a single series while others collect one coin of every "type".

There are 4 keys to investing in rare coins:

1. Coins minted for regular circulation pre-1964 were actually minted with precious metals (copper, gold or silver), which increases their base value.

2. Low mintage or "populations" can significantly increase the value. A coin with a total mintage of 10,000 will generally be worth more than a coin with a mintage of 35,000,000. This is simply because of supply and demand.

3. The condition of the coin effects the value. Coins that look like they just came out of the mint command higher prices than worn or damaged coins.

4. After these, rarity comes into play. If you own a coin that is the only known survivor, everything else is much less important. The condition of the coin will not be as important nor will the population. If a coin had a mintage of 5,000 but only one is left in the world, the coin will command a high price.

The best way to purchase rare coins is by making sure they're certified by PCGS or NGC in grades MS-60 or higher. Coins are graded from 1-70 with 70 being a perfect grade. I suggest a grade of 60 or higher because you tend to have better returns with coins that are in great condition and more rare. Don't pay a lot of money for an uncertified coin: the untrained eye can easily mistake a counterfeit for a rarity or overlook major de-valuing flaws. Try to use your eye and judgment to look for the best looking coin in a grade because not all coins of the same grade are equal! When beginning your coin collection, looking for errors in your pocket change is a great place to start. You can make a few hundred to a few thousand dollars instantly if you know what to look for!

Author's Bio: 

Jamie has an MBA from Rutgers University and a Professional Certificate in Real Estate Finance, Investment and Development from NYU. He's traded stocks since he was 13 and bought his first property within a year of graduating college. He also flipped properties and got out before the 2008 mortgage meltdown because he was able to see the market turning before it happened. He's started two companies and also has experience in investing in antiques, collectibles, gold, silver and trading futures.

He currently operates a website dedicated to helping people acheive financial freedom. How do you become rich? Visit www.jamiesmoneyadvice.com.