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The post Is Coin Collecting a Good Investment? by Sarah Edwards appeared first on Benzinga. Visit Benzinga to get more great content like this.
Coin collecting can feel like stepping into a glittering treasure hunt where history meets opportunity. Beyond the charm of owning tiny artifacts from distant eras, many collectors are drawn by the potential for impressive long-term returns. Rare coins often increase in value as their scarcity grows, and precious metal compositions can add an extra investment boost.
Yet coin collecting isn’t just about profit; it’s a passion-driven pursuit shaped by curiosity, craftsmanship, and the joy of discovery. Whether you’re in it for wealth, wonder, or a bit of both, exploring coins as an investment invites you into a world where every piece has a story and every collection holds possibilities.
Key Takeaways
- Coins hold value based on their metal content (bullion value) and rarity (numismatic value).
- Successful coin investing requires patience and extensive research.
- Popular coins like the American Gold Eagles, Canadian Maple Leaf, and South African Krugerrands are favored by collectors.
- Coin collecting provides a hedge against inflation and diversifies assets.
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Why are Coins Valuable?
Coins get their value in two ways: bullion value – the metal a coin contains, such as gold or silver – and numismatic or collector’s value, which arises from its rarity and condition.
The bullion value of a coin is much easier to calculate than its numismatic value – simply multiply the coin’s weight (typically in ounces) by the spot market price of the metal it contains.
Numismatic value is more subjective, based on collectors’ tastes and sentiments. In general, older coins with limited minting draw a higher price. The better the condition of the coin, the higher the price. Some especially rare coins are worth millions of dollars.
Coin Collecting for Beginners
While the U.S. Mint says it’s easy to begin collecting coins, it’s not a pastime to jump into without understanding the basic terminology and what you’re looking for. Research and self-education play a big role in understanding coin quality, value, and rarity, and in becoming a successful coin-collecting hobbyist or investor.
The first step is to find your niche. You might collect a particular historical figure, artist, country, period, or denomination. Pick a theme and let it guide your collection.
Carefully examine the coins you review for purchase to become an expert and start small. Even a modest collection can be valuable. Large purchases will come in time as you gain experience.
There are many ways to start collecting. Search online, join a coin-collecting club, or visit your local coin dealer. You can learn a lot by asking questions about other collectors, especially when looking for reputable dealers.
All investments carry risks, and there are no guarantees with coin collecting, as it’s not regulated. You should rely on reputable collectors and dealers until you gain enough experience to protect yourself.
Which Coins Should You Collect?
The types of coins you start with will depend on your financial situation. Some more popular choices can give a great start to your collection and provide a hedge against inflation.
Coins produced by the U.S. Mint that are popular among collectors and investors include the American Gold Eagle and the American Gold Buffalo. Staying in North America, there’s also the Canadian Gold Maple Leaf from the Royal Canadian Mint.
You can also drop south of the border with the Silver Mexican Onza or to other continents for prizes like the South African Gold Krugerrand or the Chinese Gold Panda.
Whichever coins you choose to start your collection, it’s important to treat them like any other asset in your portfolio: consider whether they align with your overall investing goals.
Pros and Cons of Collecting Coins
If you’re new to coin collecting, you’ll find a lot of positives in the hobby. However, there are also a few distinct disadvantages. Here are the pros and cons of collecting coins as an investment:
Pros
- Hedges against inflation
- Has a store of value
- Spreads risks across different assets
- Provides a tangible asset
- Mostly uncorrelated with traditional assets
Cons
- Price fluctuations can impact value
- Hard to properly assess growth without experience
- Requires time and effort
- Coins can cost thousands of dollars
- Potential for fraud in an unregulated market
Self-education is key to successfully navigating the world of collectible coins as an investment.
Where to Buy Valuable Coins
If you’re ready to become a coin collector, consider looking for your first coins in the following places:
American Hartford Gold is a family-owned business based in Los Angeles, California. The organization is a market leader in precious metal investing. American Hartford Gold specializes in selling gold, silver, platinum, and palladium coins and bars and in helping its clients to set up Individual Retirement Accounts (IRAs) invested in precious metals.
Precious metals are popular investments during times of high inflation as investors look for a hedge against inflation. Gold and silver investments may not follow the same trends as stocks, making precious metal investing a potential safe haven.
American Hartford Gold offers investors the following services:
- Gold, platinum, palladium and silver investments
- Gold IRAs
Investors need an amount of $10,000 or more to start their retirement investment journey with American Hartford Gold. The company also assists investors looking to roll their current IRAs into gold IRAs. There are no taxes or penalties on either the trustee-to-trustee or 60-day rollover IRA options it offers. American Hartford Gold will buy back the precious metals when investors want to cash out.
Best For
- Investors looking for a hedge against inflation
- Retirement savers looking for tax benefits
- Quick & easy 3-step tax-free, penalty-free Gold IRA setup
- Same day IRA – fastest in the industry
- Ranked #1 Gold Company on the Inc 5000 List and A+ Rated on BBB
- Up to $15,000 in FREE silver on qualified accounts
- Lowest price guarantee, best ongoing promotions, no buy-back fees
- Wide range of investment-grade gold and silver products, including popular coins like American Gold Eagles and Canadian Silver Maple Leafs
- The company provides a wealth of information on investing in precious metals, including guides on the benefits of gold and silver investments
- Online catalog doesn’t show pricing
- No international shipping available outside of the U.S.
Priority Gold is a precious metals investment company specializing in gold, silver, platinum, and palladium. It offers investors a way to diversify their portfolios through physical bullion purchases and self-directed precious metals IRAs. Known for its customer service and educational resources, Priority Gold aims to help both novice and experienced investors navigate the complexities of precious metals investing.
In this review, we’ll examine Priority Gold’s services, pricing, security, and overall customer experience. Whether you’re looking to hedge against inflation or secure long-term wealth, understanding the pros and cons of investing with Priority Gold can help you make an informed decision.
Best For
- Anyone seeking to set-up a Gold or Silver IRA or rollover
- Beginner gold and silver buyers looking for a transparent and integrity-driven precious metals company
- Reasonable and fair pricing
- Buy Back and Price Protection plans
- Insured and robust IRS-approved vaults/depositories for IRA gold and silver storage (3 years free storage for eligible accounts)
- An impressive selection of rare and widely held precious metals products, including IRS-eligible gold and silver coins
- Unconditional and zero-fee precious metals buyback or a repurchase program guarantee
- Accessible and responsive customer service personnel available across multiple channels including phone and email
- A+ Rated on BBB and 5 star rating on TrustLink
- Expert gold and silver consultancy services offered by certified precious metals specialists who provide comprehensive guidance and support
- An insured and expedited shipping process
- Excellent research and educational resources, including a free precious metals and IRA kit
- Gold and silver coins dominate the precious metals product selection; customers who prefer larger bullion bars, rounds, and other forms of gold and silver might consider looking elsewhere
- No live chat
- No platinum and palladium, unlike some of its competitors
Preserve Gold is a precious metals investment company that specializes in helping individuals diversify their portfolios with gold, silver, and other precious metals. With economic uncertainty and inflation concerns driving increased interest in tangible assets, Preserve Gold positions itself as a trusted partner for those looking to safeguard their wealth. In this review, we’ll take a closer look at the company’s offerings, reputation, pricing, and customer service to help you determine whether Preserve Gold is the right choice for your investment needs.
Best For
- Retirement investors seeking reputable and knowledgeable dealers for setting up Gold IRAs to safeguard their retirement savings
- Individual investors looking for a trusted and reliable precious metals source to diversify their portfolios and protect from inflationary pressures
- Experienced precious metal investors interested in expanding their catalogs and turbocharging their portfolio with a wide range of precious metals, including gold, silver, platinum, and palladium
- Novice investors seeking transparent and integrity-driven precious metal dealers to provide them with the guidance and support needed to understand the world of precious metals investing
- Those interested in acquiring precious metals for collections or decorative purposes may also benefit from the price appreciation
- Zero-pressure sales tactics, excellent Trustpilot reviews and no BBB complaints
- 24-hour satisfaction guarantee — cancel your purchase within 24 hours of completing the transaction and receive your money without penalty, regardless of the reason
- Competitive pricing — they can price-match or beat the price of their competitors
- Excellent buyback policy — zero liquidation fees for existing clients
- Lifetime account support from a dedicated precious metals specialist
- Extensive catalog of major precious metals, including gold, silver, platinum, and palladium
- Excellent educational resources, including ebooks, informational kits, and market outlook
- Reputable company whose executive team has 30+ years of combined experience streamlining precious metal investment
- Free, insured, and fast shipping within one week of payment clearance
- Limited fee information online — investors must call or fill out a form to get metal pricing
- US customers only
How to Store Coins
You must maintain your coins’ condition (and, therefore, their value). Damage can occur in many ways, including wiping coins, handling them too much, or breathing on them.
If possible, buy coins and coin sets in their original cases or capsules. You can purchase sets from mints in plastic cases specially designed to protect the coins. You can also buy single coins in capsules nested inside a folder or box. Alternatively, you can stock up on small cardboard or plastic holders, tubes, sleeves, or albums.
Avoid using cardboard that contains acid or plastic with polyvinyl chloride (PVC) for storage, as these substances can damage your coins.
When handling your coins, wear soft cotton gloves, keep the edges of the coin between your forefinger and thumb, and hold your coins over a soft cloth or pad in case you drop them. Resist the temptation to polish your coins – you could damage the surface.
If you need to wash off dirt, use mild soap and water, and pat your coins dry with a soft cloth. Avoid rubbing.
Once they’re in the proper casing, store your coins somewhere cool, dark, and dry to minimize changes in temperature and humidity. To keep your collection secure, consider taking out a bank safety deposit box or storing your coins in a safe at home.
Start Your Coin Collection Today
Now that you know more about coin collecting as an investment, you might be ready to try it. Interesting and having fun are important aspects of coin collecting, but so is educating yourself and gaining experience before diving in too deep. Once you’ve done your homework, you can find your niche for collecting and begin diversifying your investment portfolio with coins.
Frequently Asked Questions
Is it worth keeping coin collections?
Yes, keeping coin collections can be worth it—historical coins, rare editions, or those in excellent condition can appreciate over time. They also offer educational and sentimental value, and can serve as a tangible, long-term investment.
Is coin collecting still profitable?
Yes, coin collecting can still be profitable, but it comes with important caveats. The collectible-coin market is growing (a reported CAGR of about 10.5% through 2032) which suggests potential upside. On the flip side, values are very dependent on rarity, condition, demand, and market timing — and they don’t always move in lockstep with bullion. So if you approach coin collecting as a pleasure-first hobby with investment as a possible bonus, you’re in much better shape.
What is the best coin to collect?
The best coins to collect are typically rare, historically significant, or limited-mintage coins. Popular choices include pre-1933 U.S. gold coins, Morgan and Peace silver dollars, and proof and mint error coins, among others.
The post Is Coin Collecting a Good Investment? by Sarah Edwards appeared first on Benzinga. Visit Benzinga to get more great content like this.
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