How to Collect Coins as an Investment
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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 . coinshas 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
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historical tie, the value to the collector of certain pieces is high. This guide will detail the value of coins as an investment, explain how to start a coin collection, and how to make it an investment.
Rediscover CoinsMany 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. Thinking of a nickel, a quarter, or a penny, they are worth five cents, twenty-five cents, or one cent. With that being said, 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. 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.
Starting the CollectionStarting 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 HouseSearching one’s house by looking through penny jars, old coins, couch cushions, and purses is one no cost way to start collecting coins. 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. 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.
Search the Local BankLooking 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. For twenty-five dollars, a collector is able to get a box of pennies, and it is almost guaranteed that within that box of pennies a collector may find some wheat pennies. 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. The presence of silver in a coin raises the value immensely. It’s worth investing in.
Check the U.S. MintFor 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 SetsIf a collector is interested in some serious investments that will add much value to his or her collection, the collector will want to invest in a few old or rare coins. These coins can be purchased at local coin shops, online shops, or at various coin shows. 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.
Starting the InvestmentLooking 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. Doing this will add security so that even when the economy takes a negative turn, the value of a collector’s coins won’t decrease, and in many instances may actually increase in value.
How to Look for a Coin or Coin CollectionWhen collecting coins, it is important that a collector know what he or she is looking for. Coins that are typically proposed for investments include Morgan Dollars, Walking Liberty Halves, and older coins; however, from research to looking for specific coins, a collector needs to do his homework.
How to Look for Investment CoinsInvestments made on rare coins are done with the expectation that their numismatic or collector value will increase. Rare coins are quite valuable, but what is a rare coin? A rare coin means very few coins are known to exist or that there are no more than seventy-five specific types of coins. However, coins with a little larger availability have also been counted as rare. A smart investor will do his or her homework to take appropriate measures when looking for rare coins and old coins.
ResearchWith so many different options for coins to invest in, it can be a little scary deciphering what to look for. The best thing an investor and collector can do is get The Official Red Book, "A Guide of United States Coins" by R.S. Yeomen. This book is published every year and gives current retail values for specific coins as well as what investments to look for. Knowledge in itself is an investment to the collector. The more a collector knows about coins, the easier it will be to pick out valuable coins. A collector should always do his or her homework before making a purchase.
Specific Coins to Look ForThere are various coins that are worth quite a bit if one was to find them. Investors should watch out for some of these valuable coins:
Once a collector has signed up for eBay, searching for investment coins and collectible coins is as easy as typing a search term into the search box. One tip is to research popular rare and collectible coins before hand so that you know what you are looking for. For instance, if you are looking for Morgan Dollars, you would type Morgan Dollars into the search box. To narrow that search, you can put in the date of the Morgan Dollar you are looking for or use the categories on the left hand side of the page. Click on "all categories" then choose a category to search in such as coins and paper dollars, collectibles, or antiques.
Before buying a coin on eBay, it is important to learn about eBay Buyer Protection which foots the bill for any item not shipped to you. Though this is available, it can be a rather lengthy process and can be prevented by looking into the seller’s ratings and reviews. If there are multiple negative reviews or ratings, it is wise not to buy from that seller. Be sure to ask the seller questions as well to get all information you need to ensure you get the coin you are expecting.
ConclusionCoin collecting as an investment is something that must be enjoyed or the investor will not make a profit. Investing takes time and money, but can be successful if a collector starts small and does his or her research. Getting the "The Official Red Book, A Guide of United States Coins" can really help in deciphering what coins investors should get and what the value of the coins are. Coin investment is probably the wisest investment a person can choose because coins are always worth something even when the stock market goes down. Be sure to check out eBay when looking for coins. Do your research, check out your buyer, and enjoy your collection.
Rediscover CoinsMany 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. Thinking of a nickel, a quarter, or a penny, they are worth five cents, twenty-five cents, or one cent. With that being said, 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. 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.
Starting the CollectionStarting 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 HouseSearching one’s house by looking through penny jars, old coins, couch cushions, and purses is one no cost way to start collecting coins. 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. 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.
Search the Local BankLooking 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. For twenty-five dollars, a collector is able to get a box of pennies, and it is almost guaranteed that within that box of pennies a collector may find some wheat pennies. 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. The presence of silver in a coin raises the value immensely. It’s worth investing in.
Check the U.S. MintFor 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 SetsIf a collector is interested in some serious investments that will add much value to his or her collection, the collector will want to invest in a few old or rare coins. These coins can be purchased at local coin shops, online shops, or at various coin shows. 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.
Starting the InvestmentLooking 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. Doing this will add security so that even when the economy takes a negative turn, the value of a collector’s coins won’t decrease, and in many instances may actually increase in value.
How to Look for a Coin or Coin CollectionWhen collecting coins, it is important that a collector know what he or she is looking for. Coins that are typically proposed for investments include Morgan Dollars, Walking Liberty Halves, and older coins; however, from research to looking for specific coins, a collector needs to do his homework.
How to Look for Investment CoinsInvestments made on rare coins are done with the expectation that their numismatic or collector value will increase. Rare coins are quite valuable, but what is a rare coin? A rare coin means very few coins are known to exist or that there are no more than seventy-five specific types of coins. However, coins with a little larger availability have also been counted as rare. A smart investor will do his or her homework to take appropriate measures when looking for rare coins and old coins.
ResearchWith so many different options for coins to invest in, it can be a little scary deciphering what to look for. The best thing an investor and collector can do is get The Official Red Book, "A Guide of United States Coins" by R.S. Yeomen. This book is published every year and gives current retail values for specific coins as well as what investments to look for. Knowledge in itself is an investment to the collector. The more a collector knows about coins, the easier it will be to pick out valuable coins. A collector should always do his or her homework before making a purchase.
Specific Coins to Look ForThere are various coins that are worth quite a bit if one was to find them. 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
- Check the condition of the coin: The condition of the coin can either increase or decrease the value. 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. Typically coins with high amounts of precious metals will be older coins..
- Check for scarcity of the denomination: The value of the coin depends how many of the specific coin were made. Remember, rare coins are those that are few in number; seventy-five or fewer.
- 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. Look for discrepancies in the coin as one never knows when a mistake may make a coin very valuable.
- Find out where and when the coin was minted: Do a little research and find out where the coin was made and when. Coins that are older or were made in certain U.S. mints are worth more than others.
- 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. Boasting about a collection can give opportunity for a thief to pay the collector a visit.
Once a collector has signed up for eBay, searching for investment coins and collectible coins is as easy as typing a search term into the search box. One tip is to research popular rare and collectible coins before hand so that you know what you are looking for. For instance, if you are looking for Morgan Dollars, you would type Morgan Dollars into the search box. To narrow that search, you can put in the date of the Morgan Dollar you are looking for or use the categories on the left hand side of the page. Click on "all categories" then choose a category to search in such as coins and paper dollars, collectibles, or antiques.
Before buying a coin on eBay, it is important to learn about eBay Buyer Protection which foots the bill for any item not shipped to you. Though this is available, it can be a rather lengthy process and can be prevented by looking into the seller’s ratings and reviews. If there are multiple negative reviews or ratings, it is wise not to buy from that seller. Be sure to ask the seller questions as well to get all information you need to ensure you get the coin you are expecting.
ConclusionCoin collecting as an investment is something that must be enjoyed or the investor will not make a profit. Investing takes time and money, but can be successful if a collector starts small and does his or her research. Getting the "The Official Red Book, A Guide of United States Coins" can really help in deciphering what coins investors should get and what the value of the coins are. Coin investment is probably the wisest investment a person can choose because coins are always worth something even when the stock market goes down. Be sure to check out eBay when looking for coins. Do your research, check out your buyer, and enjoy your collection.