For many people, coin collecting is a fun and entertaining hobby that combines historical and anthropological interests. However, it can also serve as an investment. If you are hoping to learn more about the practical advantages of being a coin collector, consult the following guide.

Can Coin Collecting Be Profitable?

Coins are solid investments because they are made of metal. Historically, metals retain their value much better than paper currency. For example, the dollar is constantly fluctuating, and its purchasing power is lower than many other currencies throughout the world. In the event of an economic crash, you can cash in metal investments, including collectible coins, for much more than your dollars would be worth.

In addition to the inherent value of silver, gold, and other metals, many coins are valuable because of their numismatic value, or historical or sentimental significance. When certain coins are sought after by collectors, demand goes up.

As a seller, you have the freedom to raise the price of your coins to sell them to the highest bidder. For example, if you melted down a 1794 Flowing Hair Dollar, the silver may only be worth around $20. But because the coin is coveted by collectors, it was sold for $10 million.

What Should You Consider When Looking for Investment Coins?

If you are hoping to start a collection solely for the investment potential, it is best to focus on silver and gold coins. As precious metals, they have a higher intrinsic value, so their price point will be more reliable than a nickel-based coin priced high due to its numismatic value alone. Many coin collectors start with American Gold Eagles, which are affordably priced and made of high-quality gold. 

Also, ensure that the value quoted is accurate. While you can refer to industry standards like the Redbook and Bluebook, avoid buying coins online when you are just starting out.

Instead, head to a respected dealer in person, and make sure their coins have been professionally graded. This means the coin has been officially authenticated and appraised by an industry expert, so you can ensure you are paying a fair price.

If you are interested in a particular coin, research its unique characteristics, such as mint marks or dates, and look at it in person. Keep in mind that coins with manufacturing errors are often priced higher than those without, as they are rare artifacts of the minting process.

If you are hoping to make a solid investment as a coin collector, head to Coins Plus of Cincinnati. They have bought and sold rare coins since 1972, as well as offered appraisal services. As a National Award Winning and PNG Dealer and a regular contributor to the Redbook and Bluebook, their respected team will point you to a promising addition to your collection. Learn more about their appraisal services online, or call (513) 621-1996 to inquire about specific coins.