There are many different ways that people choose to invest their money. From stocks and bonds to solid gold and other precious metals. Perhaps one of the most widely recognized and popular means of investment is rare coins. Collectors choose to invest in rare coins because they are something that can be physically held onto, they have a face value that will often never decrease- only increase- and it is a practice that can be both learned and taught. Rare coin investing often brings a rich history, an exciting market, a fellowship and something to pass on to other generations.
Due to the recession that is being felt within the United States and throughout the world, many people are fearful of what will happen to the economy along with the money that they have invested. Some choose not to risk having their investment money tied up somewhere that they are unable to get it at a moment’s notice if the market were to crash. Collectible coins allow investors to always have their investments on hand and ready to cash in at any time. This also makes it very easy to keep track of the coin investments simply by looking at them.
When investors decide to purchase a coin, most of the time at a face value price, they know that it is almost impossible for them to lose any money. While rare coins have the potential to increase in price quickly and easily, they very seldom decrease below their original face value. Investors understand that even if they must cash in their coin collection during a bad time in the market, they will at least get face value for all of their coins. Unlike other means of investment like stocks and precious metals, they do not fluctuate below the price that was originally paid.
There are hundreds and thousands of different rare coins and rare coin varieties that are available for collectors to find. The practice of finding these coins is often something that is taught and passed from one person to the next. While it may seem simple- find coins that aren’t like the others- it is important for coin investors to know what they are looking for in all of the coins that go through their hands. For example, knowing that 1932-1964 US quarters are made of silver can make a difference in whether you will get a can of soda or around $15 for your quarter- depending on the current market. This is only one way of looking for rare coins and there are many others that have a much higher value than the silver quarters.
Rare coin investing has something for almost everybody. Whether the investor is a math person or a history person, they can find something fulfilling in coin investing. Deciphering the current market prices and the face value of a coin can be rewarding for a math person. History buffs will love the aspect of history that comes with rare coins. Often there is an interesting and long back-story that comes with rare coins. Whether it is a now closed mint or a blip in a machine caused by some human error or mistake, there is almost always a reason that a rare coin is the way it is. These histories can also help investors better understand different coin values.
Watching a coin show or an infomercial on television may not seem like something that is very exciting for people who do not understand rare coins. These shows are not what coin collecting is all about and oftentimes many serious investors never step foot into one or send away a money order for the “coin of the year.” Discovering a coin, determining its rarity and discovering its current or potential value can be a thrill. The excitement of knowing they are holding on to a piece sometimes worth much more than its face value can be the exact thing that drives coin investors.
Within a certain area or even a large area it is not uncommon for most coin collectors to know each other by name. Most of the time these investors and collectors are not in direct competition and can provide each other with an amount of camaraderie and competition that comes with a group of people working together towards similar goals while all participants have the potential to win. Great friendships, bonds and even greater trades come out of the people that coin investors meet, work with and spend time around.
Someone who has invested in coins for a very long time might want to pass down their coin collection to their children or grandchildren. This will enable them to have something that came directly from parents or grandparents that is sentimental and provides actual monetary value. A coin collection can be kept to remember and honor loved ones, providing sentimental value. In hard times or when money is needed, the collection can also be cashed in or sold to help with important expenses, making the coin collection have monetary value.
Catch a man a fish, and he can eat for a day; teach a man to fish, and he can eat for the rest of his life. While it may seem like a good idea to pass down coin collections, family land, large bank accounts and even homes to generations after you, providing them with a skill and hobby is often an even greater idea. Coin investments can be taught to most people and is often very easy to understand. This will enable the coin collecting to not stop with just yourself but rather to be passed down to future generations and members of your family. The gift of coin investing is a great one to bestow on younger generations.
Coin investors and potential coin investors alike can understand the benefits that are reaped from coin investment. It is important, however, for potential investors to remember that they must start small, learn the basics and practice coin investing on a regular basis. Often, rare coin investing does not lead to becoming a millionaire overnight but can help investors become millionaires over many years. Coin investors can also find a lot to offer when investing, aside from monetary gain including history, a hobby and something to pass down on to others.