For as long as coins have existed, people have hoarded them for their bullion value. However, there is evidence that as far back as ancient Rome and medieval Mesopotamia, coins were cataloged by state treasuries and scholars.
These days, coins that are interesting to collectors often include those with mint errors, those that circulated for a brief period of time, or those that are particularly historically significant or beautiful.
While some hobbies you can just hop right into, coin collecting is one that takes a bit of consideration and research.
What should you know before you buy the first coins for your collection? Let’s take a look.
1. Coin Collecting Is a Research Project
If you are going to start collecting coins, it’s worth understanding that this is going to take a lot of time and mental effort. The most successful collectors are well-versed in the field of numismatics. In this research, they learn about coins but also market dynamics.
It is a good idea to read as many books on numismatics and coin collecting as possible before jumping in. You’ll also likely want to specialize in a chosen field, and you’ll want to do research into that as well.
If you find history interesting, though, you will likely find all this studying to be quite enriching. While there are a lot of Americans who only collect American coins, there are a lot of fascinating foreign coins available as well. When you research the coins, you are gaining a window into the past.
Not all coins that people collect are used as actual currency, either. For example, these Presidential challenge coins are instead a part of a longstanding military tradition.
You’ll find that you learn about a lot more than coins when you start coin collecting. Along the journey, you’ll come across all sorts of interesting facts about cultures around the world and across time.
2. Patience Is Essential
If you are going to remember any of these coin collecting tips, remember this one. Be patient. In a world where everything we want comes into our grasp pretty much in an instant, it can be hard to adjust to the pace of collecting coins.
You might feel the urge to jump into collecting as fast as possible. Rather than rushing to complete your sets, though, consider that the finest collections are put together over the course of many years. You might luck out and be able to buy a bunch of great coins in a short time period, but you shouldn’t count on it.
The more you learn, you will find that it isn’t that often that the opportunity to buy the right coin comes up. Don’t fall for the trap of buying the wrong coin just because you don’t want to wait for the proper piece for your set. This type of attitude towards coin collection can definitely add up and get quite costly over time.
3. Think Quality Not Quantity
It doesn’t matter how big your coin budget is, it’s best to always focus on quality rather than quantity. As time goes on, it will be harder and harder to find coins that are high-quality, meaning that it will have a positive impact on their value.
Rather than buying a bunch of coins with your budget, consider choosing a small handful of really nice pieces each year. Not only is this a reasonable strategy for making smart investments in your coins, but its also a good way to ensure that you stay engaged with each of your pieces rather than having a huge collection you know little about.
Additional Tips for Collecting Coins
Coin collecting is a hobby that you will only enjoy if you learn how to do it well. If you are making rash and uninformed purchases, you will quickly get disheartened. Here are a few more tips for coin collecting to consider before jumping into this hobby.
Specialization
It’s a good idea to set some boundaries and goals when you are getting into coin collecting. Having too broad of a lens on the numismatic world can make the whole thing feel a bit manic. Instead, consider choosing a particular field within numismatics that interests you and where you’d like to do the bulk of your collecting.
Thinking Long Term
If you are looking for a good short-term investment, coins aren’t it. When you are buying coins, even at a fair retail price, you are typically still spending at least 10-20% more than the wholesale price. That means that the price of the coin needs to increase by quite a bit for you to end up just breaking even.
While some experts say you should hold onto your coins for at least three to five years, others suggest holding your coins for at least a decade or more.
Coin Collecting: Is It the Right Hobby for You?
The world of coin collecting encompasses so many lenses to reality. It’s a window into the history of economics, nations, cultures, religions, art, and so much more. If done right, it can also serve as a reasonable investment tool.
That being said, it’s not a hobby you want to hop into without much consideration. This is a hobby that takes patience and a willingness to learn. The more you understand about the world of numismatics, the market, and coin collecting, the more successful you will be.
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