Returns on Investments in Historical Coins as an Alternative Form of Capital Allocation: A Comparative Analysis with Traditional Asset Classes (2000-2024)

Purpose: This article investigates the investment performance of historical coins as an alternative asset class from 2000 to 2024, comparing them to traditional and alternative investments such as stocks, gold, REITs, bonds, Bitcoin, fine art, and luxury watches. Design/Methodology/Approach: Using auction data and standardized financial metrics—including CAGR, standard deviation, Sharpe Ratio, and correlation coefficients—the study demonstrates that historical coins offer competitive returns with lower volatility and significantly low correlation to major financial markets. Certified and pre-1933 gold coins emerged as the top-performing segments, with consistent value appreciation and investor trust driven by authenticity and scarcity. Findings: The findings support treating historical coins as a legitimate component of alternative investment portfolios. Additionally, the paper highlights the growing role of tokenization and digitization in improving market accessibility and suggests future research directions, including the development of a numismatic price index and regionally comparative studies. Practical Implications: Despite challenges such as limited liquidity, high transaction costs, and valuation complexity, coins show strong potential for portfolio diversification and value preservation, especially during macroeconomic instability. Originality/Value: