Why Coin Investing Could Be Your Ticket to Riches

Did you know that the most expensive coin in the world is the 1794 Flowing Hair Silver Dollar?

With the above mentioned coin valued at $10 million, you might find coin investing a lucrative opportunity. But with no prior experience, you won’t have the discerning eye for these coins. If you aren’t well-versed, you might end up spending money on less-than-worthy coins.

Don’t feel discouraged yet.

In this guide, you’ll learn how buying old coins can transform your life for the better. Read on and find out more.

Why is Investing in Rare Coins Still Popular?

Most people collecting rare coins do it for the same reason one would collect artworks. Rare coins encapsulate the feel and the art of that era in the same way architecture and statues do. Also, these coins have a high potential for upside resale, as long as you buy the right coins at a certain price.

Thanks to the rising access to information and society’s sophistication over the past half-millennia, collecting coins became a game for everyone. For average people, owning a rare coin means having a piece of the world’s history without much trouble. But if you take a special interest in the antique, coins are more than investing in tangible assets.

Image Credit: Robert Couse-Baker via Flickr Licensed Under Creative Commons 2.0 – old coin investing

What Makes Coins Valuable?

Some coins have inherent value when sold as collectibles, especially when made by entities like the United States Mint for that purpose. For other coins, the materials used in their creation and limited numbers can increase their value as time progresses.

Here are things to look out for when looking for coins that could increase in value:

Age

This is your first consideration since ancient coins from earlier eras have more value than today’s mass-produced coins. It’s expensive because of the precious metal used for it and the history surrounding its creation.

Rarity

The more difficult the coin to obtain, the heftier its price tag becomes. For example, old Roman Empire-era coins are common in lots of regions in the United Kingdom. That’s why they don’t carry the same value as the ones from Macedonia and Ancient Persia.

Take note, even modern coins can carry a lot of monetary value if they’re rare enough. A common example is misstruck coins that made it into circulation. Coins with mints no longer operational can also be valuable.

Metal Amount

The amount of metal and its purity can change the value of a coin. Pennies from the United States minted before 1983 are predominantly copper. Now, newer pennies use zinc, making it less valuable to coin collectors.

As for American quarters, earlier ones contained silver. The Royal Canadian Mint also used gold and silver coins, so save these since they fetch a high price later on. Always remember that coins made from these precious metals have more value than their face value.

How to Start Collecting Coins

As a beginner, you might find rare coin collecting to be a daunting task. But to become a successful coin collector and investor, you must follow the following guidelines:

Specialize in Specific Coins

This should be your first move since there are lots of different coins in the world. Picking a specific denomination, theme, era, and emperor can be a useful guide for your investment efforts. Keep your focus aimed at a particular niche and focus on building from there.

A small coin collection can be more valuable than a vast one since some coins can end up in the millions. But if you lack the laser focus, you’ll be all over the place, collecting random trinkets that might not have a lot of value. This will decrease your chances of hitting it big in the long run.

Be Critical and Discerning

With your specialization defined, it’s easy to just take anything within that niche. This is also wasteful, so it’s better not to pick at random. Always have a concrete idea of what you’re looking for and ensure that they’re the right fit for your collection.

Do Your Research

When amassing your old coin collection, don’t rely on your sellers’ advice and opinions. If you’re committing to coin investing, you must become an expert in coins. A good place to start is to check out this guide made by the United States Mint since it studies the anatomy of a coin.

You must become an expert on coin rarity, values, denominations, and other related aspects of your specialization. Aside from helpful online articles, communicating with other collectors, and reading trade magazines can supplement your knowledge. Learn the right questions to ask and enrich your coin knowledge.

Start Small

If you don’t want to bet your home, buying small will enable you to grow your collection gradually. Once you have enough experience, start buying large numbers of coins or look into highly-valued coins. To kickstart your collection, getting rare coins or those with historical importance is your best bet.

A common pitfall for amateurs is that they spend huge sums of money on coins with little to no understanding of its significance. That’s why it’s better to invest in common coins with the finest grade. Getting a $2,000 rare coin with a high grade can come later when you have a better grip on how things work.

If you want the best prices when buying or selling coins, be sure to look at American Precious Metals. Having a good idea of coin prices is instrumental to your coin collecting success.

Why Own Hard Assets?

The primary reason for owning rare coins is the market’s uncertainty. With most equities overvalued, most experts believe that the market will have further corrections soon. That’s why you must diversify your wealth by collecting tangible assets like coins.

Start Coin Investing Today!

These are some reasons to begin coin investing for your future. Use these tips if you want to make the most out of your investments.

Did this guide motivate you to start collecting coins? If so, read our other posts and get started with other investment tips and tricks today!