6. How quickly can SA rare coins be sold?

South African rare coins have about the same liquidity as property. They usually take a few months to place with investors or collectors and the sale of your coins will depend on the condition of the market at the time.

Should the market be very active, then you may be assured of a fast sale. On the other hand, if the market is quiet, then you may have to wait a while until your coins are sold.

Rare coins have about the same liquidity as property. The property above is a Villa in Camps Bay in
Cape Town, which is said to be one of the ten most beautiful places in the world.

There is never a time that a coin cannot be sold. The only variable that may not be attractive is the price. Chances are that when you want to sell into a slow market, the offers for the coins may be lower then you would like. Rare coins have the international reputation of being one of the most liquid of all collectable markets.

It is important to consider that, whilst rare coins are not immediately liquid, they have historically shown high returns. That means that the slower liquidity of rare coins has never been a material influence on their showing large profits.

Property can also take months to sell, yet vast profits are made in this area. It is often the case that the most liquid of investments offer the smallest returns. Cash in the bank that is not placed on call receives less interest, for example.

It goes without saying that we all need a certain amount of liquid investments, but many of us maintain too high a level of liquidity. This has a severe impact on the overall growth of your investment portfolio. Be aware of this and do not be over-conservative with your liquidity requirement. Rare coins can also be used as collateral at a bank and can provide instant liquidity when called upon.

When buying South African rare coins you are charged 10% buying commission. When selling, you are charged 10% selling commission. Brokers will quote you the exact price that you will pay or be paid when you doing a transaction. This means that you do not have to waste time by adding or subtracting the commission charged.