Can You Make Money Collecting Coins?
Can You Make Money Collecting Coins?
Although most coin collectors buy coins purely for their artistic, cultural, and historic significance, they can make money too off their collections. You'll, however, have to be very smart by knowing how, when, and what to put your money on!
While many coin collectors around the world collect coins as a hobby, the idea of making money from your coin collection can be so appealing. It is always every coin collector's dream to stumble upon one of the rarest coins in the world and make millions from it. But because that may just be a pipe dream, you can only make significant money from collecting coins if you're knowledgeable, work hard, make smart purchases and sales, and be very patient.
In essence, there's nothing wrong with collecting coins as a hobby as long as you're passionate about it and do it in a legal and conscious manner. Beyond that, you can still make money collecting coins while enjoying the hobby and diversify your investment portfolio.
So, can you make money collecting coins? The simplest answer to this question is, yes you can make money buying and selling coins. All you have to do is gain some coin knowledge and acquaint yourself with the coin conditions, grading standards, coin values, and of course, the coins you want to collect.
As easy as it may sound, do not rush. You'll have to be very patient and follow the values required to make it in the numismatic world. You can follow various insights, accumulate coins, and be able to spot a good deal.
In this incisive article, we'll show you all it takes to make money collecting coins.
How to Make Money Collecting Coins
Let's be very honest here. As a coin collector, it's nearly impossible to make money by just collecting coins. Instead, you can make money by selling all or part of your collectible coins. You can either sell the coins at a profit or liquidate part or your entire coin collection. In other words, collectible coins are accumulated assets and are a great way of diversifying your investment portfolio and cutting down on risks.
In addition to being a very captivating hobby for many people, coin collection is fast becoming a very viable investment vehicle, especially for investors who have lost trust in the constantly fluctuating public stock markets. Categorized as tangible assets, coins do appreciate in value over time and this should be appealing to you if you want to make money collecting coins.
Tips for Making Money Collecting Coins
Whether you want to collect coins for fun or approach coin collection as a business, here are a few things that can help you make money collecting coins.
Learn the Market and Become a Student of a Particular Series
One of the most important steps in making money collecting coins is learning the market. You should become a student of the game by fully immersing yourself in coin collecting knowledge. You can invest in coin collection books such as "A Guide Book of the United States Coins" by Richard S. Yeoman and "Everything Coin Collecting Book: All You Need to Start Your Collection and Trade for Profit" by Richard Giedroyc.
Again, it's important to specialize and become a student of a particular series. By specializing in a particular series, you can study that series and become as knowledgeable about it as possible. Whether it's through books or web-based guides, this can be a great way of becoming one of the rare coin collectors.
Know the Best Coins to Collect
As we've just noted, educating yourself is one of the most important things if you want to treat coin collection as a business. That being said, you should educate yourself on what coins can make profits, those that sell quickly, and those that can hold your money and sit on the shelf, as well as the level of investment that you're needed to make.
As such, you should have an idea about the best coins to collect and the coin collection value that can be appropriate for your business. Some of the best coins to collect include:
· 1909-S V.D.B Lincoln Cent (Investment Grade: MS-65)
· 1921 Peace Dollar (Investment Grade: MS-65)
· 1937-D 3 Legged Buffalo Nickel (Investment Grade: MS-63)
· 1878-CC Morgan Silver Dollar (Investment Grade: MS-65)
· 1955/55 Doubled Die Lincoln Cent (Investment Grade: MS-65RB) and any other rare Presidential coin collection.
Invest in Coin Collecting Supplies
Even though you may be collecting coins as a hobby, you've now decided to make it a business and make money out of it. As such, you should treat it with that level of seriousness and invest in anything that can help you make more money in the business and this includes having coin collecting Supplies.
Some of the best coin collecting supplies that you should have in your inventory include; coin magnifiers and loupes, coin scales and tongs, microscopes, coin calipers, testing supplies, safe handling, lighting, coin preservation chemicals, metal acid tests, and many more.
Establish a Good Working Relationship with a Dealer or Two
Developing a good relationship with a coin dealer can make things a lot easier if you want to make money collecting coins. By having a relationship with someone who is in the industry, you can easily buy and sell your coins from or to the dealer. This, however, doesn't mean that you can't buy from other platforms such as eBay or even sell to other people. Instead, you can seek industry advice from the dealer. After all, there's no harm in networking and knowing a couple of trustworthy dealers in the coin collection industry. In this business, you should know the best coin collection for sale as this is your inventory. You have to manage the coins, advertise your business, track the involved costs, and buy and sell while building up your portfolio.
Buy Low and Sell High
Like with any other business, the main aim should always be to buy low and sell high. Needless to say, this is how you can make a profit in this business.
To this end, it is easy to say that you can make money collecting coins by buying them low and selling high. The most important thing is to decide whether you want to collect coins for fun or to become a coin trader. If you want to become a coin trader, then you should educate yourself on the coins and treat it as a business and not a hobby. Again, learn as much as you can about all things related to the coins including coin values and grading standards. Make sure that you track everything including their prices, what's hot, and learn about the tips for making money collecting coins.