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Most people, when they think about investing, immediately imagine spreadsheets, ledgers, monthly statements and all the other things that make money a bit dull. It doesn’t have to be that way, though, as there’s this thing called diversification, which means you can invest in things besides plain old money, stocks and bonds and even property.
Many rich people are also collectors
It’s almost as if they’ve done the money/stocks/bonds thing and now they’ve moved onto things like art, rare pennies from Golden Eagle Coin, old cars, vintage slot machines… You name it, there’s a collector making a buck or two out of it.
Of course, it stands to reason that having more actual money-style money means you can afford more collectibles, or higher-value pieces, but we all have to start somewhere. You could start off by browsing yard sales for lucky pottery finds or getting together a wine cellar.
If it’s coins that bring out the primal hunter in you, then you’ve chosen a very tangible path to collecting and investing success. There’s something really enjoyable about coins that other collectibles just don’t have – they’re shiny pieces of history that you can hold and feel. Like all forms of investing, though, there are basic rules to follow to make sure you get the most out of them.
Invest and collect for pleasure
You’ve got enough money to keep a roof over your head, food on the table and clothes on your back, so have some fun; Maslow and his hierarchy of needs would approve! What’s even better is this sort of fun – finding and buying old or rare coins – can give you a serious financial kickback if you’re lucky (and canny).
Collectibles like coins, art and similar treasures never lose their value because we’ll never lose our drive for fun and pleasure.
Invest for the metal
You may have a particular fancy for gold, so learn about and invest in gold coins. Similarly, it could be silver that drives you, or both. Learning more about the things you love is always a great pleasure, especially if you’ve got an eye to a lucrative future.
Start off small – just above bullion value – then learn and work your way up to rarer and more valuable coins. It’s the sheer rarity of gold and silver (as well as the lustre) that attracts buyers and investors – precious metals just make people feel good!
Invest with a view to selling and trading
Eventually you’ll have a good grasp on how the bullion and coins market works and you may want to start buying and selling coins. You’ll want to keep some, obviously, but if you see a type of coin or a particular vintage coming up in popularity, then buying it to sell at a profit can be a real buzz. Plus, you can sell your collection a little bit at a time; it’s not all-or-nothing like it can be with a car. Better still, it’s not just an anonymous transaction like it is with stocks – you get to see and feel the buyer’s enjoyment of the coins.