U.S. Coins Market: Historical Performance and Anomalies
61 Pages Posted: 12 Dec 2019 Last revised: 27 Jan 2020
Date Written: January 24, 2020
In this paper, we document the historical performance of collectable coins from 1967 to 2015. Collectable coins have a 9.7% annualized nominal return and a 5.5% real return over this period. We show collectable coins provide large diversification benefits based on their Sharpe ratios and are effective at countering both anticipated and unanticipated inflation. Lastly, we document cross-sectional and time series momentum and newly issued coin underpricing, anomalies in the market for collectable coins that are typically associated with stocks.
Keywords: Alternative investments, Long-term returns, Numismatics, Coins, Anomalies, Information diffusion
JEL Classification: G11, G12, Z11
Suggested Citation: Suggested Citation