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Coin Collecting as a Hobby or Investment

Jul 23, 2008
Coin collecting goes back as far as the manufacture of coins goes. Anyone can pursue this hobby. Were you that little kid that went through their parents pocket change hoping to find that rare coin? It is fascinating how diverse collections can be. Coins are found in many different categories. You can either focus on collecting ancient coins belonging to one country or collect coins belonging to different countries.

Taking coin collecting even further, the collection can even be based on a particular series, a particular type set, a particular dye or even a particular grade of coin. There are also those that are collecting coins that have errors due to the dies used, uneven designs, double strikes, and re-punched mints sometimes turn out to be worth more than their weight in gold.

Then there are those who like to only purchase very rare and expensive coins for investment purposes. Many people love to purchase brand new coins straight from the mint while others collect foreign coins only. The great thing about coin collecting is that there are no rules and everyone can collect whatever they wish. A good example of this kind of investing takes place with gold coins like the American Eagle gold coins produced by the US Mint. These coins, symbolically stamped with a face value, are worth much more as they are made with 22 karat gold. The value is in the gold in the coin.

The term Numismatics is the terminology used for the study of coin, notes, medals, but all coin collectors are not necessarily numismatists. Typcially, the kind of coins you collect and the number of coins you collect depends on how well off you are financially. It can be quite an expensive hobby because rare coins could cost a lot. In fact the coin collecting market can be likened to the stock market where the share prices plummet one day and shoot up the next. The factors that influence this could be the ordinary forces of demand and supply. Because of this, it is recommended that coins that are purchased should be done with money that you don't need for bills, and with the idea that you are going to hold onto your coins for a while as they ride the ups and downs of the market.

Furthermore, the internet has been an amazing boon to collectors of coins the world over and collectors are able to find up to the minute information pertaining to value, rarity, and conditions of coins of all shapes and sizes. Online participation in the hobby of coin collecting is enormous, with individuals logging on to look up information about their coins, meet up on message boards, and find chat rooms where enthusiasts can get together to trade coins. There is a wealth of information available on the internet for coin collectors, and new coin collectors, so hitting the web can be a great place for starting. Part of the fun of coin collecting is the community and the social interaction with others that share the same interest. Some of the most interesting places you will find are the coin collecting forums where people discuss how to find, what they have found, and the kinds of deals that are going on.

There are coin shops and shows where you can find knowledgeable collectors who can help you find what you need and can give you advice on furthering your collection. Be wary of sellers at flea markets, antique shops, or other on-targeted markets where the seller may inflate their prices or sell problem coins to unknowledgeable customers. The same risk can come from mail order or online purchases. Knowledge is your best insurance when dealing with these dealers. Use businesses referenced in coin collecting publications or from other collectors who you trust.

Most of today's coin collectors developed the hobby within the last twenty years. Nearly all of the commemorative coins issued in this time period has increased in value. Here are a few examples of coin investments which have some collectors smiling: the 1995 Tenth Anniversary of the American Eagle coin set (issue price $995.00, current value $3,600.00); 2000w $10 uncirculated bimetal Library of Congress coin (issue price $235.00, current value $1,100.00).

It is important to distinguish whether you are buying coins for an investment, or a hobby. The stakes tend to be higher if you are trying to buy as an investment. One thing to note is that a hobby can turn into an investment. But the kinds of coins you will buy may vary as an investment compared to a hobby. Hobbyist will buy based on emotion, and sometimes whether a coin is valuable or not, while a investor usually buys based on numbers and how much value he can get when he sells. Hobbyist typically don't sell often, while an investor will have an exit strategy in mind and sell when the value of a coin reaches a certain level.
About the Author
Visit http://eaglegoldcoinshop.com for pricing on American Eagle Gold Coins . You can find Eagle gold proof coins , and American Eagle bullion at auction pricing.
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