Hobby
Some collectors amass collections purely for fun with no real profit expectation. This may be most common with children just starting into coin collecting.
Investors
A common reason given for purchasing coins is as an investment. Coin prices can be cyclical and prices may drop for coins that are not in great long-term demand. In addition to demand, condition and rarity are also determinants in pricing. The age of a coin is not, per se, a factor.
Many of the reasons given for investing in coins are similar to those given for investing in stamps, precious metals or other commodities. As with most collectibles, a coin collection does not produce income until it is sold, and may even incur costs (e.g. for safe deposit box storage) in the interim.
While collecting for pleasure can make an enjoyable hobby, those entering the field primarily to profit should be warned to study before buying. Certain companies, some of whom may advertise on television, in newspapers, or in popular magazines, are alleged to make outlandish claims about the present and future values of their wares. After learning the basics of the field, it is often possible to make better purchases from reputable dealers.
Hoarders
Coin hoarders are similar to investors and collectors in the sense that they accumulate coins. However, they typically do not focus on one specific variety, rather they gather whatever coins they can and hold them. This is most common with coins whose metal value exceeds their spending value.
Commercial Buyers and Speculators
Commercial buyers and speculators purchase coins solely for the value of the metal used in the coin. Often, the coins purchased by this group are melted down or distributed as bullion for commercial purposes. Typically they purchase coins that are composed of rare or precious metals, or coins that have a high purity of a specific metal.
Inheritors
Someone who acquires coins (collection, hoard, investment) from another person. The inheritor does not necessarily know anything about numismatics, they just have the coins.
by : wikipedia.org
Showing posts with label collector. Show all posts
Showing posts with label collector. Show all posts
Thursday, May 28, 2009
Tuesday, May 26, 2009
Do's and Don’ts of Coin Collecting
Coin collecting is something that takes time to learn. The most important thing to remember is that you are doing it for the right reason - if it is a passion, then it is something worth pursuing.
Collecting just for profit may work but it usually is not enough in the long run. A person really has to think about this since many people who have tried it for that reason have lost focus and failed.
Successful coin collectors take a lot of time to learn everything there is to know about numismatics. Good sources of information are magazines, newsletters and brokers who can pass on information and news, when it happens. By using the resources a person can act fast before other collectors who want the same thing get the information first.
If a person tries to collect without knowing the basics, he will never succeed in this hobby.
Knowing how to grade coins can also help the collector know the true value of the collection. This knowledge will be valuable if the owner decides to trade for something of greater value or it can prevent scamming and wasting money for something of little value. Be vigilant!
One of the virtues that coin collecting can teach a person is patience since the collection may take years to complete. Some of the well-renowned collectors in the world have spent many years before reaping the benefits.
Learning to think like a collector is very important. Being too eager is not good because the collector could be tempted to purchase or trade the wrong coin which could prove to be costly. Think twice about using the information given even if that came from a reliable source.
Coin collecting can be difficult especially if the person is just starting. A person, more than likely, can’t afford to buy items worth more than $10,000, so it is best to start small and study the market for three to six months so that he can be comfortable before going after bigger prizes.
Coin collecting is similar to sports - it takes time to excel at it and goals, both short and long term, have to be established. By following the rules and using common sense, the person can become one of many other successful coin collectors.
Collecting just for profit may work but it usually is not enough in the long run. A person really has to think about this since many people who have tried it for that reason have lost focus and failed.
Successful coin collectors take a lot of time to learn everything there is to know about numismatics. Good sources of information are magazines, newsletters and brokers who can pass on information and news, when it happens. By using the resources a person can act fast before other collectors who want the same thing get the information first.
If a person tries to collect without knowing the basics, he will never succeed in this hobby.
Knowing how to grade coins can also help the collector know the true value of the collection. This knowledge will be valuable if the owner decides to trade for something of greater value or it can prevent scamming and wasting money for something of little value. Be vigilant!
One of the virtues that coin collecting can teach a person is patience since the collection may take years to complete. Some of the well-renowned collectors in the world have spent many years before reaping the benefits.
Learning to think like a collector is very important. Being too eager is not good because the collector could be tempted to purchase or trade the wrong coin which could prove to be costly. Think twice about using the information given even if that came from a reliable source.
Coin collecting can be difficult especially if the person is just starting. A person, more than likely, can’t afford to buy items worth more than $10,000, so it is best to start small and study the market for three to six months so that he can be comfortable before going after bigger prizes.
Coin collecting is similar to sports - it takes time to excel at it and goals, both short and long term, have to be established. By following the rules and using common sense, the person can become one of many other successful coin collectors.
Get Started With Coin Collecting: A Fun & Educational Hobby
Coin collecting has grown to be a great hobby over the years for everyone regardless of their age. Many coin collectors started off their collection of coins when they were young and now have large numbers of them. In this article I will explain why coin collecting has become a good hobby and how you can get yourself started with it.
Why Is It So Popular
There are many reasons to collect coins. One of the reasons is because of the coins value; this could be the historical value, metal value or perceived value. Another reason people collect coins is because of the pleasure received from it. Collecting coins from any country and inspecting them can give people a sense of pleasure and some people pay thousands for a single coin that could complete their collection.
How To Get Started
Firstly you want to find someone who already has started their coin collection. If you can’t find anyone then join a group there are a lot out there (if this is still undoable then find a book or ebook). The reason for doing this is because you want to be able to learn some basics of coin collecting and with that basic knowledge you can learn how to find a good coin dealer to start of your coin collection.
Once you have some coins the next thing you want to do is investigate them. To do this you get a magnifying glass (a larger one) and look at your coin in a bright area. When examining the coin you are looking for things like errors, dates, markings and more. By examining the coin you will learn there value of it and you can consider selling it to a coin dealer or keeping it for your collection. Within time and training you will find it easier to investigate coins and sometimes without the magnifying glass.
Finally the last thing you need to do is get storage for your coins. This can come in the form of a folder where you can put a specific type of coins and if you have duplicates you can buy a tube to store them in or you can make a bit of money by selling them.
There you have it, three easy steps to start your own coin collection. Whether you are doing it for fun or profit coin collecting is a great thing to do and if you get into it you can buy magazines that will contain information and tips on coin collecting and you may find some useful.
By: James Pswarai
Why Is It So Popular
There are many reasons to collect coins. One of the reasons is because of the coins value; this could be the historical value, metal value or perceived value. Another reason people collect coins is because of the pleasure received from it. Collecting coins from any country and inspecting them can give people a sense of pleasure and some people pay thousands for a single coin that could complete their collection.
How To Get Started
Firstly you want to find someone who already has started their coin collection. If you can’t find anyone then join a group there are a lot out there (if this is still undoable then find a book or ebook). The reason for doing this is because you want to be able to learn some basics of coin collecting and with that basic knowledge you can learn how to find a good coin dealer to start of your coin collection.
Once you have some coins the next thing you want to do is investigate them. To do this you get a magnifying glass (a larger one) and look at your coin in a bright area. When examining the coin you are looking for things like errors, dates, markings and more. By examining the coin you will learn there value of it and you can consider selling it to a coin dealer or keeping it for your collection. Within time and training you will find it easier to investigate coins and sometimes without the magnifying glass.
Finally the last thing you need to do is get storage for your coins. This can come in the form of a folder where you can put a specific type of coins and if you have duplicates you can buy a tube to store them in or you can make a bit of money by selling them.
There you have it, three easy steps to start your own coin collection. Whether you are doing it for fun or profit coin collecting is a great thing to do and if you get into it you can buy magazines that will contain information and tips on coin collecting and you may find some useful.
By: James Pswarai
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