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Are Coin Collections Worth the Investment?

Updated on December 5, 2017

Coin collecting is a hobby that captures the imagination of many, as there are multiple factors that can make coins fascinating to own. Some collectors are enthralled with the history behind the coins, and love to learn the story of each coin’s origin. Other collectors focus on the design and artwork of the coin they own, which can be quite beautiful. One important reason people collect coins is for their potential investment value. If you’re not an expert (and most of us aren’t!), you may be wondering if a coin collection is a good investment for you.

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There are two potential ways to measure the value of coins: bullion value, or the amount you could get for the metal the coin is made of, and numismatic value, which is the amount you could expect to get for the coin itself, based on factors like its condition and how rare it is. These amounts can be wildly different—the value of the copper in a pre-1982 penny (when they were switched to zinc) is not high, but rare pennies can be worth quite a bit. For example, in 1943, most pennies were made of steel, to save copper for the war effort. However, forty 1943 pennies were made out of copper by mistake, and in 2016 one of those ultra-rare coins sold for $1.7 million!

Indian Head Gold $2 1/2 Coin.
Indian Head Gold $2 1/2 Coin. | Source

Like many other kinds of collectibles, coins are not a great short-term investment. If you are purchasing coins with an eye to their future worth, you need to be prepared to hold on to them for a while to let their value appreciate. Also, if you intend to focus on coins with a high numismatic value, you’ll need to do your homework to determine which coins are genuinely rare and a good value. According to the experts at the online site, Auction King, as with any other kind of collectible, working with reputable dealers is a must, because unscrupulous sellers have been known to take advantage of eager buyers, either by selling counterfeits or misrepresenting the worth of the coins they have to offer.

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Not everyone has the time or inclination to delve deep into the intricacies of numismatic history, but that’s not a reason to rule out coins as an investment. Historically, precious metals like silver, gold, and platinum go up over time, so coins made out of these metals can be expected to appreciate in value. Savvy investors, who know the value in diversifying their assets, may opt to invest in precious-metal coins to protect some of their wealth from the uncertainty inherent in the stock market. They also know that valuable coins can be found at auction at below-market values, making them an even better investment from the start.

Buying collectibles is an investment that is good for your money. Online auction sites are one of the options, and they are a great place to find deals on a wide variety of collectibles and the affordability makes it the perfect place to start your collection. However you choose to begin your numismatic journey, you will be entering a long-term investment that can be passed down from generation to generation.

Do you or anyone you know have a coin collection?

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      Carole sheppard 

      10 months ago

      How many cuds are known on the Colorado State quarters and in what position on the coin are known?

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