Coin Collecting as an Investment

Collecting coins was once viewed as a “Hobby of the Kings”. Today the perspective has shifted to all people and is used with investment in mind. While there are some people who collect coins just for fun, many people focus on the financial benefits of coin collecting.

Who can benefit from coin collecting?

Coin collecting is for those who are willing to invest their time. It’s a long term investment which will not pay dividends immediately. Coin collecting is a family hobby which is passed on from one generation to the next; therefore, you should have the patience to grow the collection because with time the value of your coins will do the same.

You can consider adding rare coins to your investment portfolio. To give your family more security, some financial advisors suggest holding 5-10% of your total investment in precious metal and rare coins. Precious metal and coins will hold their value or even increase when the stock market is in the tank. Many people are profiting from coin collecting, from those selling the coins to those buying for their collection.

How to Start Collecting

Some coins are made of precious metals like silver and gold, giving them an intrinsic bullion value which appreciates with time. Others are rare and their value increases as they become fewer and their demand increases. Whether you want to start collecting rare coins or metals with intrinsic bullion value, you can start no matter what your budget is.

Here are some of the ways of finding coins that do not require a huge investment.

Search the House

Start the coin search in your house in your current coin stash. Look for coins in your piggy bank, in your car, cushions, ash tray and any other place you keep loose change. This will not cost you anything and is a good way to start your collection. Some people may tend to find coin collecting more interesting than they thought it would be.

Search the Bank

If you’re lucky you can find a few old coins in your house. However, searching for coins in your house is a way of testing the waters. The coins you find can be used to buy some coin rolls from the local bank. Penny rolls are a cheap way to start your coin collection. For a few dollars, a collector can get a box of coins from the bank. Within that box, one is guaranteed to have a few old coins that can be worth more than their face value. The older the coin, the more valuable, especially if the coin contains silver.

Buying Coins

Buying rare coins and coin sets is a good investment for serious coin collectors. Rare coins and coins made of silver, platinum add much value to the collection. Such coins can be bought online, in local coin shops and coin auctions. However, always do your research on coins before making major investments.

How to Look for an Investment Coin

To start a coin investment, you need to develop an interest in coin collecting and gain knowledge about the market. As an investment, coins are collected with the hope that their value will appreciate in the future. You may not benefit from the investment now, but your children might benefit immensely from your collection.

Conclusion

The secret to starting coin collecting as an investment is developing a genuine interest and researching on the coin market. Take advantage of this market and diversify your investment by adding rare coins to your portfolio.

Remember all investments have some risks. Get advice from your personal investment advisor before you venture to collecting coins as an investment.