Posted by: American Coins & Gold | January 23rd, 2018
Believe it or not, coin collecting is a massive industry generating an estimated $10,000,000,000 in yearly revenue in the US alone! The common conception of rare coin collections being passed down from generation to generation is actually a very real occurrence. Often we see family members come in with a set of rare coins that was a family heirloom that they are finally ready to cash in. Others view their coin collections as a long term investment and build there collections accordingly. The beautiful part about collecting valuable coins is that if you ever need the money, you can always sell. However, if you don’t need the money, passing your coins down to your children and grand children allows them to have both a memory and sense of security if the time comes to ever cash them in.
How Is Collecting Coins An Investment?
When it comes to viewing coin collecting as an investment, its important to consider 2 factors. The first, is that coins will always be worth their weight in gold, silver, or copper no matter the condition of the coin. The second, and most profitable, is that rare a desirable coins fetch payouts much higher than their precious metal value. Diversifying your investment portfolio is vital to ensure you have the best plan in a number of different situations.
For example, if you have all your money in stocks & crypto currencies, but then the market crashes, you can be left with absolutely nothing. This was the case for many people during the 2008 recession. However, if you wisely diversify your portfolio and ensure you have invested in precious metals and rare coins you can feel safe that your investment will hold its value. Besides holding value, the precious metals and coin collecting industry does also see appreciation over the years. While this is not the type of appreciation you might see in other industries, you must remember the risk is far lower. Just take a look at the price of Gold chart over the last 10 years.
As you can see, gold has been on the rise ever since the recession has passed and is currently sitting at a high of over $1,333 / ounce as of a couple days ago!
How To Start Investing In Coin Collecting
Our best advice to begin collecting coins is to start with what you already have. This includes going through your piggy bank, sorting through all of the family heirlooms, and searching the back of those old drawers to find any rare or old coins you can find. This is a great way to get started in the coin collecting journey and can help you appreciate the hobby for what it is. The next step is to begin obtaining knowledge about the coin collecting industry so you can always be in a position to make the right decision. Whether that is buying new coins for fair prices, selling your coin collection to the right buyer, or just learning about all of the basics so you have a solid foundation.
Once you have done your research and are ready to begin building your collection, take the time to talk to your local coin dealers! Another great part about the coin collecting community is how passionate and knowledgable everyone can be, and being able to learn from each other. Stop into your local coin shop and don’t be afraid to ask questions. Here at American Coins & Gold, we love answering any coin questions you might have so you can become a more informed collector! One word of caution, always opt for an appraisal before you buy OR sell any coins of value to ensure you are getting the best deal. Unfortunately, wherever there is money to be made, there will be people who abuse the system. This includes people selling fake, counterfeit, or replica coins and ripping people off. Rise above the noise and take the time to fully understand the coin industry and it will pay off in the long run.