It is estimated that there are around 7-10 million coin collectors and coin dealers in the United States. Many of this numismatists think of their precious collections as a form of investment or a safety net when the going gets tough.
Investing in coin collections can take a lot of time and an initial contribution, but can be a very successful venture if the individual does his research and he is determined to succeed.
Many experts agree that coin investment is a smart decision because of the fact that the coins will always be a valuable commodity, even if the economy and stock market go downhill.
But how is it possible to make some money out of this hobby?
1. Research for valuable coins
It is important to decide what kind of coins you are going to look for and invest in.
An important read for every numismatist is A Guide Book of United States Coins, also known as the “Red Book.” Another is the Krause’s Standard Catalogue of World Coins, which are issued every year and provide present retail values and information of how much certain coins are worth.
Every collector raises his chances to find more valuable coins if he’s informed more on history and have some knowledge of general opinion and demand for the coins.
Experts agree on some of the valuable coins investors should watch out for, such as the 1893 S Morgan Silver Dollar, the 1889 CC Morgan Silver Dollar, 1895 O Morgan Silver Dollar, and 1913 Liberty Head V Nickel, among others.
A good tip to help coin collectors and investors is to look for coins with mistakes and production errors. These usually sell for more than their denomination value.
Trying to collect a whole set of coins is another good option since having all the pieces from a certain collection can bring you more money.
Another good strategy is investing in precious metal coins, as their value increases over time and are some of the easiest commodities for trading.
That being said, numismatists can also buy antique and rare collectible coins over the internet at different online auction sites, as well as at coin shops, shows, or licensed dealers.
2. Keep your collection for a certain period of time
Benjamin Franklin, a passionate coin collector once said, “You take care of the collection, and the investment will take care of itself.”
Generally speaking, it is better to keep your collection and hang on to it for awhile, perhaps even a number of years, in order to gain more value and opportunity for better earnings.
It is also important to give proper care to the coin collection to keep it safe and protected. They need to be stored in preservative containers, usually in dark and dry places, while the more valuable ones should be in a security safe or a safety deposit box.
3. Sell to a good market
There are three main ways of selling your collection: to a coin shop or a dealer, through a physical auction, and with the help of an online auction or marketplace.
If you are in a hurry and want to turn your coins into cash fast, the best option is to have them sold to a dealer. However, expect to get a lower price of around 20-40%, since they also need to make a profit.
If time is not a constraint, then the best way to sell your collection and get the most out of your coins is through an auction, whether physical or online.
It is also a good idea to get a coins broker who can help you with the whole process of evaluating the coins, and provide assistance in selling or buying.
Another essential thing is to know how to assess the best time to sell certain coins, because the demand and popularity can fluctuate over time.
Keep in mind that coin collecting is an industry valued at approximately 10 billion dollars, that is only in the States. It is actually a hundred billion dollar industry on the global setting. It comes as no surprise why so many people are choosing to make this hobby their additional source of income.
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