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How to Collect Coins as an Investment?

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Collecting coins is an excellent way to have fun with your family and friends and to invest in high yielding instruments.

Before social media became popular, coin collecting was one of the most preferred hobbies for youth and adults alike. Coins collected by one generation were passed onto the next as well.

Over the course of time, collecting coins as a source of investment has gained popularity. The demand for pure gold and silver coins has increased over the decades as precious metal reserves are depleting. U.S. coins, for instance, have both bullion value and a historical tie - which makes the collecting value of these coins considerably high.

Like all other investments, collecting coins requires time and money. You cannot expect the investment to yield high results within a short time. Financial advisors recommend that you store 5-10% of your total coin investment in rare coins. Here’s what you need to do when investing in coins:

Do your Research

Every day, you will come across rare and antique coins throughout the world. It can get a little tricky when choosing the best coin(s) for investment purposes. Talk to any coin collectors in your area. Call your bankers for more knowledge. Search up on investment magazines and commodities markets on the trading values of coins. This way, you’ll get an idea as to which coins are worth considering from an investment perspective.

Coins worth Investing

When you’re busy with your search, you’re likely to find a few coin names reappearing on all forums. Such coins are very valuable and have a continually increasing market price. As a potential investor, here are some coins that are definitely worth investing in:

  • ü1889 CC Morgan Silver Dollar
  • ü1893 S Morgan Silver Dollar
  • ü1895 O Morgan Silver Dollar
  • ü1901 Morgan Silver Dollar
  • ü1913 Liberty Head V Nickel
  • üAmerican Eagle Gold Coin
  • üCanadian Maple Leaf Gold Coin

Spotting the Best Coin(s)

Whether using coin counters or not, there are certain physical features you need to be on the lookout for, in coins. Be it from a stack of pennies or change from your couch cushions, whenever you find a coin, here’s what you need to check to determine its worth as an investment:

  • üCondition: The condition of a coin plays an important role in determining its market worth. Mint-coins generally rank higher than worn out ones, but not necessarily. Ancient coins are more valuable in their worn out state. Do some research on what your coin’s condition should be, before investing in it
  • üMetal: Coins made from gold, silver and copper are much more valuable than bronze coins. If you come across pure gold or silver coins, there’s a high probability that they will be older and therefore, have a higher value
  • üUniqueness: It might sound strange, but coins that were made wrong or had a printing fault can actually be worth a lot. Such coins are an anomaly and often intrigue experienced coin collectors and auctioneers alike. If you see a coin with a printing defect, keep it with you. In time, it will increase in value.

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