Beginners Guide To Collecting Rare Silver And Gold Coins

There’s an adventurer inside of everyone that is trying to break free. Rare coin collecting is one of the best hobbies to offer that outlet. There is a huge market awaiting those treasure hunters that are bold enough to step into it. In fact, coin collecting in general is experiencing an enormous boom from hobbyists and others alike.

There’s undoubtedly a movement happening today towards metal coinage, although this may come from different reasons. Consumer confidence has been shook to the core. The GDP is abysmal. At the same time the market seems to be climbing towards unprecedented heights. People are smarter than most professionals give them credit for, and shoring up assets in real value coins is on the ascent.

That’s why coin collecting is no longer just for hobbyists, as more and more people are entering the arena in fear of a potential dollar collapse. For them, this becomes a fall back plan that may just put these coins back in circulation, or at the least preserve what wealth they do have left. There are all sorts of reasons that people are flocking towards coins, and all have their own merit.

Of course, there’s several other ways to invest in these commodities. Both gold and silver have ETFs and stocks that are openly traded on the market for the public to speculate in. This is more for those investing in the actual mining operations by getting behind a company. Here again, the market has many people spooked these days though. Therefore, investing in something they can actually hold in their hand gives them more confidence, and coins offer that opportunity.

Future outlook
This particular hobby is far different than any other. Those who are already collectors could be setting themselves up for a windfall of good fortune in the near term. This new stampede will certainly drive up demand, and thus drive up the price of these rare coins.

Silver and gold coins of the rare variety are not the typical currency. They have the benefit of a healthy speculation price along with real value in the precious metals they are created from. This is in stark contrast to that of paper money, and a real luxury to investors who are starting their own collection. It offers them a huge purchasing power advantage over those keeping paper inside of a bank account.

As for the future outlook, rare coins look certain to continue their upward momentum. In fact, some experts in the industry are claiming the real rush towards rare silver and gold coins hasn’t even begun yet.
gold silver coins
Getting started
Not everyone will start out with the Flowing Hair Dollar, which is currently estimated at over $10 million dollars. It takes time to build a collection. This doesn’t mean there isn’t a robust opportunity for every entry-level coin collector either. There’s a chance for all levels of investors to begin their new journey into the world of rare coins.

The market for coins is a different approach than that of stocks. It’s important to understand that coin collecting isn’t about junk flipping despite what many in the market do practice. There’s certainly nothing wrong at all with flipping coins, but most collectors do better with the buy and hold approach to see the real value grow from their efforts. There may be opportunities to cash out of a particular coin that is far too tempting, but it’s much more common for collectors to hold their coins for at least a year to see their wealth grow.

A good starting inventory might run a couple of hundred dollars. Anything less than that probably falls in the junk-flipping category, which is more speculation than anything else. Still, even on the low spectrum this allows those operating on the thinnest of budgets to get going on their new treasure hunt. Either way, new investors should have a discerning eye when purchasing any coin.

It’s also important to work with a reputable coin merchant.

Understanding value
Investors should have a good understanding about the coins they are targeting in the first place. Obviously, there’s a huge disparity between silver coinage and gold coinage. That’s because the price of silver and gold in general is trading at a roughly 15:1 ratio historically. This means that in normal market circumstances it would require 15 ounces of silver to be worth as much as one ounce of gold.

However, coin collectors aren’t dealing with simply the raw costs of producing these two precious metals. In fact, when it comes to coins there’s a whole other set of standards that dictate the value beyond spot market prices.

One of those deciding factors is the quality of the coin. Obviously, the more wear it has the value is likely to decrease. On the other hand, a coin that is in solid condition, closer to that of the original mint, will likely keep the cost of the coin at a premium. Condition will definitely have an impact on the value.

Another thing that sets them apart from raw precious metals is the unique characteristics that are associated with the coin. Everything in the world is worth only what someone is willing to pay for it. In other words, beauty really is in the eye of the beholder. This may not be any truer than with coin collectors as many allow their passion to dictate what price they are willing to pay for a rare coin.

That leaves an incredible opportunity for someone who may be holding a piece that could, for instance, complete a particular set. This would drive up the value tremendously for that collector who wishes to have their set of coins completed. It’s a very interesting dynamic that is found throughout the coin collecting communities.

Purity of the coin is also noted. Not all rare coins are made of pure silver and gold. Many are plated with a precious metal or mixed together with others. Some are only 14k gold, or other degrees of purity. Investors have to know what they are buying.

Another factor is the degree of rarity. Some coins belong to a rather large mint. However, if the coin were one of the few remaining this would increase its value. In some instances, coins that are early editions of the mint are also worth more than those farther down the line. It’s a good practice to keep current on market news about the collection.

Unique characteristics aside, it’s still important to know what the metal is doing in the market. At the end of the day, there is still a disparity between owning gold from silver. However, looking at the current price of silver compared to gold, the rumors have it that silver in general is set for a huge bull run. Therefore, not only is silver cheaper than gold, but it also currently has the potential to increase its value more than gold does. Just because collectors are dealing with the rare factor, doesn’t mean they shouldn’t also pay attention to what the raw markets are doing.

Tools of the collector
This should go without saying, but the best tool any investor has at their disposal is their knowledge. It’s critical to spend some time getting familiar with the rare coin industry. They should only invest in those coins they’ve studied to the fine details. This will also allow them to spot fakes, and preserve their capital that might be fiddled away otherwise.

The rare coin collector needs books with very detailed images and notes about the particular coin or collection the investor is interested in. The good news is that many of the older coin books are extremely resourceful in detailing the rare coins. The bad news is, these days there’s a lot of other information floating about that isn’t nearly as credible. Some price guides might even have their own hidden agendas for keeping certain information privy. Due diligence, and double checking is key to making a quality investment in rare coins.

Another tool that is necessary is a camera. No one is simply going to fork over a small fortune without knowing exactly what they are purchasing. Take pictures of the coin and cross-reference it to spot any potential discrepancies. It’s also good to keep pictures of the investor’s own collection in the event they would have it stolen.

Coin collecting really is a world of its own. Some do it purely for the passion. Others are getting savvy about the current economy. No matter who begins their adventure into this hobby they’ll certainly be hooked. It doesn’t matter what the reasons are, coins are in and will remain so for generations to come.

Beginners Guide To Collecting Rare Silver And Gold Coins
5 (100%) 1 vote