Investing in Coins
Investing in coins
Investing in collectibles can be both fun and profitable. While buying stocks and bonds is a great way to grow a portfolio, collectibles offer you something different when investing money. Collectibles include items such as classic cars, sports trading cards, stamps, wine, and coins. If you invest in something you love, then investing money won’t feel like work. In fact, investing money in collectibles won’t get old, leading you to find continual excitement in your investments. While your investment may never provide you a sizeable return in profits, at least you will have a collection to enjoy in your free time.
The rise of collectibles
Collectibles have become the new “must have” investment. With younger investors now looking for ways to diversify their portfolios, collectibles – or hobby investing – is a fun way to grow profits. Some investors have lost faith in traditional ways of investing money. The last decade-plus since the World Financial Crisis has influenced more individuals to look at other investments.
One of the most unique aspects about investing in collectibles is that you don’t have to be super-wealthy to do it. Tangible items, such as coins, are completely different than investing in stocks and bonds. You can physically touch coins. Value is often attached to sentimental value, which can raise considerably do it an individual’s interest.
Rare coins have seen their prices increase over the years, which has led to collecting becoming more popular. The prices for rare dates and scare coins have climbed high. Coin collecting is an outside the box investment strategy. While the stock market and banks see ups and downs, rare coin prices are not dependent on the same financial issues that the other two are.
How to start investing in coins
Coin collecting isn’t as difficult as it may initially sound. In fact, it can be easier than setting up an account with an online trading company.
There are some specific items you should do as a novice coin investor:
- The first thing to do is to become specialized in one area. You should select a theme, time period, and/or denomination to collect. By deciding on these areas, you will be able to guide yourself through your investments and coin collecting. Concentrating on a specific area allows you to build up your collection. Rather than purchasing coins from a variety of eras, denominations, and time periods, you can grow a valuable collection by focusing on one specific set.
- Next, you should know exactly what you are searching for. Each coin should fit into your collection and increase the value of your portfolio. Picking random coins to add to your collection can cause you to spend money to acquire coins but fail to add overall value to your investments.
- You should never take advice from sellers as they are trying to make money off of you. You need to research the coins you are collecting and become an expert on the items in your collection – and the ones you are yet to add to it. Coin collecting websites, magazines, and books are great places to acquire the knowledge you need.
- You do not need to start big when investing in coins. Start small and work from the ground up to get coins for your collection. As you become more experienced, you can buy sets of coins at one time or more expensive coins. Until you have more experience, don’t spend too much at one time on you coin collection.
- Novice collectors should avoid spending a lot of money on coins they don’t have any knowledge about. Purchase common coins that are graded highly to start out with if you don’t have the financial capabilities to buy more expensive coins. In addition, historically important coins are often great investments.
Grading coins for investment
If you are going to invest in coins, you need to trust the dealers you buy from. You don’t want to be taken advantage of by a coin dealer, so knowing the grades is crucial to having a good working relationship.
The grading scale for investing in coins is as follows:
- Fleur-De-Coin (FDC), or a perfect mint state
- Extra Fine (EF), and finally
- Very Fine (VF)
- Fine (F)
- Very Good (VG)
- Good (G)
Coin collecting can be highly subjective. The appearance and appeal to an individual can increase the price of a coin. Grades may vary depending on the coin. The smallest distinctions in coins make a major difference in their overall worth. A small aspect of a coin compared to one nearly identical can see a difference of thousands of dollars in value. A collector’s subjectivity is a risk when investing in coins.
Is investing in coins risky?
Coin investing is just as risky as other investments types. Yes, there are some things that make coin collecting not as dangerous as some investments.
Ways to reduce your risks when investing in coins:
- Get the best price possible for each coin. You don’t have to spend a lot of money to purchase rare coins. You may even find a dealer that works with you on a good price that is advantageous to both parties.
- Get a great deal when possible, but don’t just think as an investor. Select your coins as a collector to keep it as a hobby.
- Keep detailed records that show how much you spent on each coin. Purchase information will help you keep a record of the coin’s grade. Detailed records of the money spent on the coins will help you make a profit when selling.
- Find a dealer that is reputable. Try to get a certificate of authenticity for the coins.
If you invest your money right, you should get returns similar to other investments. The past performance of a coin does not mean that it will replicate that performance. However, looking at trends over time, you can get an idea of how a coin has performed and may perform in the future.
The exciting aspect about coin collecting is that anyone can do it. In addition, you don’t have to break the bank to begin your investment portfolio in rare coins. So, what are you waiting for?
Alexander Bentley leads Remedy Investments™ a private equity fund specializing in operational real estate. Remedy Investments™ has significant expertise in developing Luxury ApartHotels across Europe and the wider APAC region.
Alexander Bentley is the creator & pioneer behind Remedy Wellbeing Hotels & Retreats. Under his leadership as CEO, Remedy Wellbeing Hotels™ received the accolade of Overall Winner: International Wellness Hotel of the Year 2022 by International Rehabs.
Because of his incredible work, the individual luxury hotel retreats are the world’s first $1 million-plus exclusive wellness centers providing an escape for individuals and families requiring absolute discretion such as Celebrities, Sportspeople, Executives, Royalty, Entrepreneurs and those subject to intense media scrutiny.