How to Invest in Collectible Coins

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Whilst many people collect coins as a hobby, others invest in collectible coins in the hope of making money. Collectible coins tend to increase in value over time. Whilst collectible coins are not to be thought of as a way to make money in the short term, they can offer a great return on investment in the future. In this article we will explain how to start investing in collectible coins

Always carry out thorough research before investing in collectible coins.

Always carry out thorough research before investing in collectible coins.

What makes a coin a collectable?

Collectible coins are coins that have historic or aesthetic value. They do not usually contain a high content of precious metal, which means their historic and aesthetic value usually outweigh their melt value. Their historic and aesthetic value is often referred to as numismatic value. It is determined by a number of factors such as the type of coin, the year it was minted, where it was minted and its grade (condition).

Do your research

If you are serious about investing in collectible coins then you will need to do your research. A great way to research the different types of collectible coins available is to look at reputable websites and read trade magazines. By carrying out this research you should get a better idea of the wholesale prices of different types of coins. Keep in mind that if you buy coins from a dealer, there will be a mark-up on the wholesale prices so that they can make a profit.

You will also need to research how to go about having collectible coins assessed. Coin graders assign coins a numerical grade which goes from one to seventy. It is worth keeping in mind that grades can vary from dealer to dealer as despite the fact the process is based on set criteria, it is still ultimately subjective. Always get a second or third opinion on coin grades, sites like can be invaluable for price checks and guidance.

It is essential that you research the various different places you can buy coins. Always check out sellers online to make sure that they have good testimonials and reviews. Once you have researched the areas outlined in this section, you will need to make a plan of the collectible coins you aim to invest in. This will help to make sure that you do not overspend or buy coins on a whim and regret it later.

Coin trade shows

Many people invest in coins at coin trade shows. Look online and in the newspaper for information about upcoming coin trade shows in your local area. Coin trade shows are a great place to invest in collectible coins as you can have the peace of mind that you are doing business with reputable dealers and have the option to examine the coins for yourself.

Local coin dealers

The benefit of purchasing collectible coins from a local coin dealer is that you can examine the coins, rather than just having to base your decision on a picture. Seeing the coins for yourself will enable you to get a better idea of their grade. When purchasing from a local dealer make sure that they have all of the necessary authenticity documentation to go with the coins you purchase. It is worth keeping in mind that local coin dealers are likely to have relatively small inventories and may charge more than online dealers.

Online dealers

There are a number of places you can invest in collectible coins online including coin dealers’ websites and trading sites like eBay. Although online dealers usually have larger inventories and offer cheaper prices, there is an element of risk in purchasing coins online. In order to reduce the risk of fraud, make sure that you research the reputation of the company or seller you are buying from. You also need to check that they provide clear images of the coins and adequate descriptions. Make sure that their returns policy is in accordance with the Distance Selling Regulations.

When it comes to investing in collectible coins, knowledge is power!

When it comes to investing in collectible coins, knowledge is power!

Conclusion

The key to making a good investment in collectible coins is to carry out thorough research first. By researching all elements of collectible coin collecting you will have the knowledge to make smarter investments.

Image credits: zachflanders & Paul L Dineen