Perks to Collecting Rare Coins

Many people enjoy collecting rare coins as a hobby, passing the time researching their coins and looking for good deals or rare coins with a lot of history behind them.

That said, in these increasingly unstable economic times, there are a lot of other perks to collecting rare coins. When the stock markets are unstable and economic growth is sputtering or stagnant, investors often turn to precious metals. In those situations, investing in gold, silver, platinum and palladium is often a great way to hedge against the market and find some profit.

The same is true of times of heavy inflation, which many are forecasting in the United States in the coming years, depending on the political action taken to address the United States’ growing problems with deficit and debt.

Thus, rare coins are the unique item that can be both an investment and a fun hobby. That may make doing the necessary research to cash in a lot more enjoyable, leading to more knowledgeable investments. Of course, that’s always a good thing.

Rare Coins Can Also Hold Value through History and Rarity
In addition, sometimes even if precious metals are struggling, they can maintain their value because of their historic significance or rarity.

For example, since the United States government used to mint some of its coins with a great deal of silver, those are considered rare now due to the change. In 1965, the United States started switching dimes and quarters with copper and nickel, after predominantly using silver prior. Thus, those older coins have increased in value.

Likewise, silver dollars are worth more due to their rarity. They were minted from 1792 through 1835, and in 1794, the United States also began minting silver half-dollars.

Other rare coins that have been produced by the United States include higher value coins than are found in circulation now, such as $20 Double Eagles and $4 Stella gold pieces.

Their value on the market today far exceeds their official minted value, as the Double Eagles have been auctioned off for at least $7,000.

Also Consider the Content When Collecting Rare Coins
Double Eagles cannot drop below the spot price of gold since they contain nearly an entire troy ounce of gold. That makes them an even more steady investment, as you know that your investment has a floor equal to the current price of gold but its scarcity and rarity mean that it will far exceed that.

Thus, always be aware of the precious metal content of the coins that you are investing in. The higher it is, the more the coin is worth. In addition, this makes collecting rare coins a unique way for the average investor that cannot purchase an entire gold bar to invest in precious metals.

If you are able to find, for example, a one troy ounce gold coin that is not rare enough to have increased value, you can basically invest in gold bullion without having to shell out more money than you can afford to buy a large gold bar.

Perks to Collecting Rare Coins
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