Investing Money in Coins Pays Off
When you are thinking of investing money, you may want to consider one of the more interesting alternative investment strategies: coin collecting.
As in all types of investing, it is important for you to educate yourself on the investment items. It is also important for you to know that you will likely not become rich investing solely on coins. For this reason, it is important when investing money to make sure your portfolio is diverse, especially if you choose coin collecting as one of your alternative investment strategies.
With that said, coin collecting is a long term investment. There are no deals on rare coinage. Expect to pay close to what the coin is worth on the open market. The idea is to have patience after choosing your coins wisely. Learn how to grade your own coin collection. Often coin dealers will over grade their coins in order to mark up the value. Auctions are not the best place to either buy rare coins or sell them. It is in your best interest to maintain control at all times over coinage negotiations. The better educated you are about rare coins, the more you will succeed at this investment opportunity.
As with any type of collection, you should try to purchase the best quality items you can find. Coins that are in excellent condition will increase in value much faster than worn or damaged rare coins. This makes sense. A collector who is seeking rare coins wants to display their collection and they will not want to display damaged coinage. In addition, purchase coins that are in demand. Know your market. If you are a serious investor, you will eventually sell your coins at a profit. A coin collector who does not eventually sell their collection is a hobbyist. An investor always buys items with the intent to sell in the future when their investment increases in value. Investing money can be a fun and viable option, if you take the time to fully understand the world of rare coins.
In order to invest money using coins as a vehicle, one must first categorise coins as circulated, uncirculated or mint coins. Purchase a high wattage bulb, a lamp that can focus on your area of work and a magnifier that magnifies 5x-8x. Look carefully at your coins and see where they fit on the Sheldon Scale. The perfect coin in mint condition is rated M70. This includes the clarity of the strike, lack of flaws and brilliant colour. Mint coin ratings are numbered down to M60 depending on visibility of flaws, clarity, and cleanliness of the coin and the colour of the metal. Uncirculated and circulated coin gradings run from the highest grading of AU58 (About Uncirculated 58) to P1 (Poor). The most common coins collected, of course, are circulated coins, but the best coins to invest money into in 2017 are the rare, uncirculated coins. Even though uncirculated, coins can show signs of wear and what one wants to assess is the amount of wear on the most raised portions of the coin. At the lowest rating, if a coin does not have a visible date and mint mark, it will not be worth anything.
Choosing the best alternative investment can be difficult, so careful consideration is crucial. Your questions on best alternative investments will be answered by our industry experts, free of charge.
Best Alternative Investments.
- How much do you have to invest?
- How long do you want to invest for?
- When do you require a return on investment?
To help you through the multitude of choices, enter your details below and let the Compare The Financial Markets experts find the best alternative investment for you.
