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.  

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