HOW TO COLLECT COINS AS AN INVESTMENT
Collecting coins as a hobby can be something fun for the whole family as a hobby and can be passed on for generations, but coin collecting can also be an investment. Collecting coins as an investment is one of the safest investments because a coin after all is a coin and will always have some value. The demand for U.S coins has risen over the decades and precious metal such as gold and silver can be melted down to makes bullion. U.S. coins not only have a bullion value, but as a collector’s item and historical tie, the value to the collector of certain pieces is high.
HOW TO START A COIN COLLECTION, AND HOW TO MAKE IT AN INVESTMENT.
- Rediscover Coins
Coin collecting is a way to bring people together, a way to invest free time, and a way to invest in something worthwhile for kids and grandkids long after the collector has passed away providing a collector with a sense of security. Many people do not know the value of coins beyond their monetary value. As most coins today are made from various combinations of materials, but not full precious metals, they are not worth as much as vintage coins made from pure metals.
It is hard to imagine that collecting coins is actually a ten billion dollar industry just in the United States and a one-hundred billion dollar industry worldwide. Coin collecting is an investment for those who take the time to do it. It does not immediately pay off, but as the collection grows, the value also grows.
- Starting the Collection
Starting a coin collection can be done whether a collector has a lot of money to invest or just a little. There are various ways to find coins that require little investment.
- Search the House
A collector should save coins that are of interest, that are quite old, or that provide uniqueness to the collection. However, the most important aspect to collecting of any kind is to enjoy it. This is a great way to get started because it will help the collector know if he or she really enjoys looking through and researching coins.
- Search the Local Bank
Looking for free money around the house or lying around can lead a collector to taking in a few dollars to get some coin rolls from a local bank. Penny rolls are a cheap way to invest and start a collection. Though wheat pennies aren’t worth much, they do add up. The older the penny, the more copper, and the more copper the more they are worth. Even a penny from 1980s can be worth three cents as opposed to one cent. If a collector wants to invest a little more, he or she can get rolls of quarters, dimes, nickels, and half dollars. Investors can check the silver content of U.S Coins by looking online.
- Check the U.S. Mint
For a collector who wants to just dive on in to coin collecting, he or she can buy proof sets from the U.S. Mint which is where all coins are made. Silver proof sets are the better investment as they open the collector up to two different market fields; precious metals or silver, and numismatics or research based collectors.
- Buy Rare Coins and Coin Sets
However, before buying a rare or old coin, it is important that the collector continue learning about coins to find the exact rare or old coins that would add value to the collection as a whole. These coins can be purchased at local coin shops, online shops, or at various coin shows.
- Starting the Investment
Looking at a coin collection as an investment means investing time and money into many coins or a coin collection. This is not a short term way of making lots of money; it is a long term investment that increases in value as the collection grows. Financial experts suggest that collectors store five to ten percent of their investments in rare or precious metal coins to make the collection worth the investment.
HOW TO LOOK FOR COINS OR COIN COLLECTIONS
How to Look for Investment Coins
A smart investor will do his or her homework to take appropriate measures when looking for rare coins and old coins. Investments made on rare coins are done with the expectation that their numismatic or collector value will increase. A rare coin means very few coins are known to exist or that there are no more than seventy-five specific types of coins.
Some Specific Coins to Look For:
Investors should watch out for some of these valuable coins:
* 1913 Liberty Head V Nickel
* 1893 S Morgan Silver Dollar
* 1901 Morgan Silver Dollar
*1889 CC Morgan Silver Dollar
* 1895 O Morgan Silver Dollar
What to Look For in a Coin
- Check the condition of the coin: Do some research on the coin to see if it is worth putting in the collection.
- Check to see what precious metal content is in the coin: Coins that have a higher amount of precious metals such as silver, gold, or copper are worth much more than coins created today.
- Check for scarcity of the denomination: The value of the coin depends how many of the specific coin were made.
- Look for striking appearance or uniqueness: Coins that were made wrong, slipped through in the minting process, or are a rare design can be more valuable.
- Find out where and when the coin was minted: Do a little research and find out where the coin was made and when.
Caring For The Coins
Keep the coins in safe protective containers, typically individually.
Keep coins in a dry, dark place to prevent deterioration.
Try not to handle the coins. If handling must be done, the collector should hold them by the edges as the hands can degrade the coin over time which reduces their value.
Keep high value coins in a safety deposit box at a bank.
Keep other investment coins in a security safe in the home or place of business that is hidden, secured to a wall, or hidden in the floor.
Be extremely careful discussing the coins with other people.