For many people, collecting coins is just an exciting hobby. But over time, a simple hobby can turn into a profitable investment. Knowledge of some of the features of this market and a competent approach will help create such a collection, the value of which will only increase over time.
1. Collect what you like
People who receive high incomes by investing in coins are first of all good collectors, and only then are investors. As with the stock markets, savvy investors consider making a profit from collecting in the long run. But collecting coins is a little more complicated than just buying stock. At one time, an experiment was carried out, during which a monkey throwing darts blindfolded into a list of stocks collected an investment portfolio no worse than a professional investor.
Investing in collectible coins is a long-term investment. The value of coins is determined by different factors and each of them can "play" at different times. So collect coins that you just like. Over time, you can lose interest in one collection and start collecting another, and then go back to the old one. And this is quite normal. Changing interests is inherent in any person, and in the case of collecting, it only diversifies your hobby.
Don't confuse collectible coins with investment coins. The price of the latter is formed from the market value of the precious metal from which it is made and, thus, you are investing not in the coin itself, but in the precious metal. You can start your collection by collecting coins from different countries (for example, start collecting US coins from the early 20th century) or coins from your country. This way you will become familiar with a variety of coins and can choose which ones best suit your interests and, most importantly, your budget.
If you collect coins that you like, you will not only be interested in buying them, but also in gaining the necessary knowledge about them. And knowledge, as you know, is the most valuable asset in any investment strategy.
2. Study more
As in the case of stocks, in order to make an intelligent decision about buying this or that moment, you need to know the subject of investment well. Before buying, carefully study the series of coins that interest you. Read more books on the collection you are interested in, collect the necessary information. This will make your decision to buy certain coins more balanced. If you have no idea what you are going to buy, most likely your investment will not bring you benefits.
The Internet is also a good source of knowledge for gathering the information you need. But not all information published here may be correct and reliable. So take the time to find reliable sources of information online. If you can buy coins on the website where you are researching the information, you are listening to the opinion of the seller, not the expert.
3. Go to stores and talk to sellers
When it comes to investing in coins, a knowledgeable and trustworthy seller should be one of your best friends. This can be a person who has a small store in your city or a salesperson who only appears at coin shows. However, having a storefront does not make a salesperson honest and trustworthy yet. Unfortunately, sometimes the only way to know if a given salesperson can be trusted is through harsh life experiences. Chat with other coin collectors, join a local collectors club and find out which local sellers you can trust. But, remember that you must form your own opinion about who to trust.
Once you find a reliable seller, try to buy coins through them. It is tempting, having received the information you need, to buy the coin you need on the Internet for a lower price. But, in this case, be prepared that the seller will not be interested in wasting his time with you if he realizes that you are not going to buy from him.
4. Avoid investment mistakes
There is a saying that says, "If something sounds too good to be true, then it is." This is quite applicable to the hobby of collecting coins.
There can be tons of tempting deals on the Internet, but 99 times out of 100 they will fail. Such transactions include the purchase of overvalued, as well as counterfeit coins.
Another newbie trap is buying a low-quality coin. The cost of such a coin will always remain at a low level. Take the time and patience to find good quality coins.
5. Investment risks
Remember that any investment is a risk. The price of coins can both rise and suddenly decline. Therefore, remember that you are, first of all, a collector. This way you can enjoy your collection.
We advise you to see:
If you collect coins and want your hobby to bring you, in addition to pleasure, income, watch our video and you will definitely learn how to get rich!
