Coins Are Investments You Can Hold On To
Collecting coins as a hobby
is extremely exciting and intriguing for people
who enjoy it. Today’s economy requires every
individual or family to have an additional
income, and what if that additional income comes
from a source that you enjoy and are interested
in? It is highly advisable and has been proved
repeatedly that if one wants to start making
money it is ideal to turn one’s hobby or
something that he/she is passionate about into a
business endeavor. Having said that, coin
collecting can be turned into a great investment
and can help you eventually earn a lot more
money than your full time job.
Coin collecting is a
whopping one hundred billion dollar industry
worldwide and a ten billion dollar industry in
the US. Coin collecting as an investment is for
people who have the patience because the
collection grows gradually, thereby increasing
the value and then the investment starts to
bring back profit.
Collecting coins is a form of
investment that will give one financial security
in the worst economic crisis, as the value of
the coins will not decline.
Like any other business
venture, to have a business plan with strategies
is imperative. But before that, the most
important thing to do is gain as much as
knowledge about collecting coins as one can by
researching online and offline. The first step
is to find out how to start with collecting
coins. One doesn’t need to have too much money
to invest in, but if he/she does have extra
bucks, then that is just an added benefit. One
can explore the house for old coins, approach
local banks for
penny rolls for
wheat pennies,
serious investors can opt for
proof sets or
silver proof sets from the US Mint and invest in
rare coins and coin sets available online, coin
shops and so on.
After one has found one or
many means of collecting coins to form a coin
collection, the investment aspect is to be
considered.
Coin collections
are a long-term
investment, as it requires investing time and
money into collecting coins. As the coin
collection grows in quantity, the value of the
coin collection as an investment also grows.
Including at least five to ten percent of their
investment in rare or precious metal coins can
considerably increase the worth of the
collection as an investment. But the collector
needs to be extremely careful when investing in
rare or precious metal coins because of the
various scammers spread all over.
Rare coins are coins that
are very old, as a result there are very few of
them that still exist. But there are certain
categories of coins that are large in numbers
and are still counted as rare. That is why it is
important to carry out a comprehensive research
to acquire knowledge for the same. Collectors
invest in rare coins with the expectation that
the coins numismatic value will grow. This will
definitely add financial security to one’s
investment and help the collector make lots of
money.
Rare coins will form the
five to ten percent of the collection, but what
about rest of the ninety percent? For any coin
collector and investor it is advisable to read
‘The Official Red Book: A Guide of United States
Coins” by R.S. Yeomen. It is published and
updated every year with the present year’s
retail values for various coins and the best
investment options to look for. It will
enlighten the collector with valuable knowledge
and help him select the perfect coins to invest
in to make profits.
There are certain specific
coins fondly known as key date coins that are of
great importance and of high value. Adding them
to the coin collection can definitely increase
the worth of the collection. Few of them include
1913
Liberty V Nickel,
1893-S Morgan Silver Dollar,
1901
Morgan Silver Dollar,
1889
CC Morgan Silver Dollar,
1895
O Morgan Silver Dollar,
1859-1909
Indian Head Cents,
1909-S VDB Lincoln Wheat Cent,
1916-1930 Standing Liberty Quarters and
more.
The main points that
need to be considered when investing in coins
are as follows:-
·
Grade of the coin: It is essential to check
and research about the condition or
grade that the coin is in because that can
affect the worth of it, favorably or adversely.
·
Research and study behind
the coin: Carry out a brief research behind the
coin, show it to a reliable coin shop owner or
Google can answer most of the questions.
·
Materials used in creating
the coin: Precious metals like copper, silver or
gold content instantly increases the worth of
the coin, so find out about the materials used.
·
Determine the rarity of the
value: Rare coins are those that were produced
in small quantities and that is the reason the
worth increases.
·
Determine the origin of the
coin: The date and place where the coin was
minted is important to determine the worth of
the coin.
Apart from vintage, rare
coins, investing in gold coins is not just a
wise investment, but also a safe place to invest
one’s money in for financial security in the
years after retirement. it is the safest way to
invest and protect one’s hard earned money.
Gold
coins can be both, a great investment and can be
added to the coins collection to take its worth
to another level altogether. The collector can
invest in
Gold American Buffalo that was first
minted in 2006 or the
South African Gold Krugerrand,
which can be classified as the original
one troy
ounce gold bullion coin.
Investing in gold and
silver bullion coins can give the investor the
highest returns and profits. They are minted
legal tender of any country and contain gold and
silver as the main element in its making and
design. The three main advantages of investing
in these two metals are that firstly that they
are accepted across the globe because of their
metallic components. Secondly, the silver eagle
coins and gold eagle coins of the US are priced
high, not only because of the current gold and
silver price, but also its historic value adds
up. Thirdly, they can be used anytime and during
crisis such as emergencies and global recession.
But diving into investing in gold and silver can
go horribly wrong without any prior experience.
That is why it is extremely essential to talk to
gold coin collectors and investors, research
about them and understand the entire concept
before deciding to invest in them.
The coin grading system is
the process through which a collector’s coin is
graded depending on its overall worth. It is
extremely important to grade every coin from the
collection in order to know its worth and also
for further selling and profits. The system
determines and regulates most of the
above-mentioned points such as the condition,
quality and everything related to its
individuality. The higher the coin grades, the
greater numismatic value of the coin. The
grading system consists of a 0-70 point scale
devised by DR. William Shelby on which coins are
graded successfully.
In order to get the coins
graded, the collector needs to approach a
grading company known as a TPG- Third Party
Grading Service. The responsibility of
authenticating and grading the coins vests with
TPG. They are impartial and ethical, as the name
suggest they are purely third party. To name a
few expert Third Party Grading Service companies
include PCGS (Professional Coin Grading
Service), NGC (Numismatic Gauranty Corporation)
and PNG (Professional Numismatists Guild. There
are many more TPGs, but these are definitely
well known and trustworthy.
Once the coins are graded,
the actual moneymaking comes into being. The
collector can take his/her business further and
become a reputable coins business owner. If one
expects a quick result and wants to make money
instantly then he/she can opt for the following
that includes:-
·
Selling on E-bay and other
online marketplaces
·
Visit coin dealers
frequently for discounts and to know the market
demands
·
Set up booths and stalls for
coin shows similar to trade shows
·
Organize get-togethers with
other local collectors
·
Build an ecommerce website
to sell the coins collection
·
Sell coins online through
personal website with the help of affiliate
programs
Coin collection can be
exceptionally profitable only if it is done with
adequate knowledge about how to turn the
coin-collecting hobby into a business
investment. One needs to enjoy and also, to an
extent, be passionate about collecting coins to
make profits because only passion can bring
success in any business. The collector can
invest for long term or short term, but the
profits are guaranteed by investing in coin
collection. Investing is a slow process and
initially takes time and money, but once the
collector has mastered the knack of investing
and making profits, it is a cakewalk for
him/her. one may have shares in the stock market
or a permanent job, but once recession hits,
everything goes down, but not the value of
coins. This is the main reason coin investment
is one thing that the collector/investor can
hold onto for a lifetime.
Click Here for More Information on Rare Coin
Investing
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for great prices on all coins and currency.
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