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If you’re interested in becoming a coin collector, you have an exciting road ahead of you. There’s lots to learn about coin collecting, and it can be both a fun activity and a lucrative investment.
Whether you’re beginning a coin collection as your latest hobby, diversifying your investment portfolio, or both, here are some tips for getting started.
Do Your Research
If you’re completely unfamiliar with the coin collecting world, it’s time to gather information until you feel more comfortable and confident that the purchases you’re making are worth the price. You should also know how to sell your coins for the right value, but all of this takes time. Start by learning just a few things before beginning your collection, and then make sure to continue learning as long as you’re a coin collector.
One of the first things to learn about the industry is that coins have different types of value. There is numismatic and intrinsic value. Numismatic value can be looked at as the entire value of the coin, including factors like the rarity and history. The condition the coin is in can also play a role in setting numismatic value.
The intrinsic value is determined by the value of the metal within the coin. If the coin is made of silver, the intrinsic value will be determined by how much silver is trading for that day, regardless of how rare the coin is.
Some coins have an intrinsic value of less than a dollar, but the numismatic value is much higher. Modern coins used for traditional currency are made of much more common types of metal, so coins made of precious metal are rare, adding value and demand for these coins.
There are some coins with minimal intrinsic values, but contain numismatic value of hundreds, thousands, or even millions of dollars. For example, one of the most expensive coins in the world is the 1804 Bust Collar, Class 1 coin. There are only eight of these coins in the world, which drives the value up tremendously. In 2017, one of these coins sold at an auction for $3.8 million. While most coins won’t be worth nearly this much, the value of all coins is affected by how rare the coin is.
Keep Track of Price Fluctuations
The value of precious metals can fluctuate often. Keeping up with the fluctuating prices is an important part of collecting coins if you’re looking to get the best value for your purchases. It’s best to buy when prices are low and sell when they’re high.
Coins can also vary in price based on the country they come from. American Eagle, South African Krugerrrand, and Canadian Maple leaf are common types of coins. Whenever one of these types of coins is in short supply, the value will go up.
Start Small
No one becomes a coin collection expert overnight. The world of coin collecting takes time to learn. If you get in over your head without understanding it, your investments might not pay off as well as you like.
Start with a few coins that you like and build from there. Once you’ve learned how your coins change value over time and some of the ins and outs of the industry, build your collection larger. As you learn about different types of rare coins, you can add a lot of value to your collection.
Determine a theme for your collection
It’s not always necessary to have a theme to your collection when you’re first getting started, but a theme can help guide your coin purchases and increase the value of your collection. As soon as you’ve collected a few coins, it’s a good idea to determine a theme for your collection.
There are nearly endless ways to organize your coin collection into themes, but some common themes include country, time period, coin finish, denomination, mint mark, design theme, and artist.
Adopt a long-term perspective
Coin collecting is not a hobby for investors looking to make a quick buck. Precious metals are reliable investments when you hold on to them for the long-term. While the price of metals may drop at times, it’s important to hold onto your supply until the price rises again if you want to make a profit.
Your collection will also grow more valuable as you create a more complete collection of historic coins. This will take time to find the best coins that add value to your other coins.
Join a coin club
A great way to learn more about coin collecting and stay up-to-date on things going on in the industry is to join a coin club. Coin clubs bring together people who love learning about investing in precious metals and collecting rare and valuable coins. These clubs are a great place to learn and potentially hear about which types of coins you should invest in.
Speak with Experts
The best way to become confident about the coin collection world is to learn from experts who know all about historical and numismatic value, as well as how to check the authenticity of coins and find the best buyers and sellers.
Unfortunately, many coin dealers are unreliable and will not give you good information. Scammers are common in the precious metal industry. When looking for expert advice, it’s best to go to a dealer with a reliable reputation who will have your best interest at heart. Look for their association with common non-profit organizations and communities, as this will provide credibility to any reliable dealer.
Smart Investments for Beginners
Many different types of coins can be excellent investments, but when you’re first starting out, it’s best to go with the most reliable options. Gold and silver coins are the most reliable for their numismatic value, so these are a good investment to start with.
Variety in an investment portfolio also makes your investment more reliable, so you may want to start with coins made of both gold and silver. Buying coins that have been professionally authenticated also makes your investment more reliable.
To feel confident about your first purchases for your coin collection, work with a dealer you can trust. Infinity Coins has a strong reputation for helping customers find a good value and begin long-lasting coin collections.