Coin-Collecting

My best friend was into Coin-Collecting. He was able to take this hobby unto a level of making an income, that is hard to believe. He had amassed his collection, through barter and trade, into some big bucks. He would go to the bank and buy rolls of pennies and nickels, then search through these every night. He also found that he could buy these rolls of coins from small country stores, small home town banks, and hit a jackpot occassionally. He started as a child, and as an adult, he did very well!

But, despite what he was able to "cash out", what he kept was worth a lot!

Why Collect Coins?

Coin Collectors usually started as children, with money they received from their parnts or family. They are usually hobbyists, with no expectation of profit. However, there is another subset of collectors, that do coin collecting for profit, such as some do for stamp collecting. and precious metals.

Coin values drop if long-term demand falls. This occurs often, such as when a fad passes. Investors buy with the expectation that the value of their purchase will increase over the long term. Investors study price movements, and buy what they perceive is due to go up in value, and do not try to complete "sets", as a hobbyist would.

As with all types of investment, the principle of caveat emptor applies and study is recommended before buying. Likewise, as with most collectibles, a coin collection does not produce income until it is sold, and may even incur costs (for example, the cost of safe deposit box storage) in the interim.

Buying Gold

Coin collectors sometimes buy gold, and so do some investors (who are not known as coin collectors). Krugerrands are common gold coins from South Africa, and is one troy ounce of gold. I would love to have a big box of these!

Wikipedia onCoin-Collecting

Coin-Collecting for Beginners

Book For Coin Collecting for Beginners - Amazon

Coin-Collecting Supplies

Cost of Coin-Collecting

This is an interesting thought. Many of us save money for a rainy day, so why not save it as coins? As long as the money is in currency, it doesn't lose value, and if it is in heavy demand, it can be worth more than face value! A good example is Indian Head pennies. These are still used as currency, (only a fool would spend an indian head penny as just a penny, but it still happens, rarely).

My friend occasionally got a batch of coins from these country stores, where a kid may have used his Dad's collection, as just plain money! I know my mother had spent some of my meager collection, as just plain cash! After all, it was still in circulation. A Silver Dollar is always worth a buck!

But, there are supplies and other expenses to consider. There are albums, catalogs, magnify glasses, purchases of foreign coins, old coins not in circualtion, etc.

What do computers have to do with Coin-Collecting?

There are many websites related to Coin Collecting. You can buy supplies, coins, sell coins, find coin collecting clubs, etc. Then you should keep track of your collection, and a computer is good for that as well. see: Asset Tracking - Coins and Stamps

You can also research on any given coin(or series) using Google or other search engines. Knowledge is key to any hobby!