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 invesment. Show all posts
Showing posts with label invesment. Show all posts
Thursday, May 28, 2009
Tuesday, May 26, 2009
Kids And Coin Collecting
Starting a coin collection especially for your children can be fun and exciting. More than that, it can be profitable too. A lot of parents start a gallery of their coin collection for the sake of their children and the generation after. It is quite a thrill to fancy old coins and show your kids how the mode of currency looks like, way back.
Collecting coins can also be a sort of investment because sometimes, coins that were inherited or passed on from generation to generation are more valuable than a hundred dollar bill. Now, collecting coins can be cool but there are a couple of pointers that you have to take note of like:
• Determine the amount of money that you are willing to spend for the sake of buying old coins. Remember, a coin collection is not just a collection of old pennies but an array of very, very, very old currency used even during ancient times which means, they are quite expensive and relatively centuries old.
• What is your goal in collecting coins? For gifts? Investment? Hobby? You have to decide whether or not this collection will go on for years or it will stop at some point in your child's life.
Collection Budget
For the sake of discussion, we'll tackle about starting on a very tiny budget, much like 50-100 dollars a year. With this kind of budget, you could buy several kinds of coins namely the Mint sets which would not be more than $100. Fancy Silver Proof costs about $40 same as with Uncirculated set which would just amount at $25. You can go through the Internet and search for probable coin prices which are not that expensive and would definitely reach your budget.
Child Motivation
Encouraging your child to see coin collecting as a hobby is thin, but very much possible. All you have to do is motivate them to like coin collecting by making them realize the importance and benefit they can get from it. There are several coin types that your child can appreciate namely Buffalo and Jefferson Nickels, Mercury Dimes, Wheat Cents, Roosevelt Dimes and Indian Head Pennies. Start with these and then show it your child. Sit down with him and tell short stories about the coins. This will somehow build a certain kind of interest in him.
Safe Coin Collection
However you decide your coin collection may be - heirloom or investment reasons, or just for fun, make sure that it is safe, both for you and your child. If you're planning to stash your heirloom and investment coins at home, bad idea. You just gave yourself a pretty good reason to be robbed. Best thing to do is get a safety deposit box and keep them safe in a place where you only know or if you really treasure your coins, put it in the bank. If your kids are actively collecting coins, make sure that it is kept in a safe place where visitors or strangers will see. If your child shows no more interest in his collection, just deposit his coin album in your bank. Never leave it hanging on a drawer because burglars will definitely take it for they are very easy to sell. Always teach your child the importance of his coin collections and tell him to keep the folders out of sight especially when people are around.
By: Jon Simms
Collecting coins can also be a sort of investment because sometimes, coins that were inherited or passed on from generation to generation are more valuable than a hundred dollar bill. Now, collecting coins can be cool but there are a couple of pointers that you have to take note of like:
• Determine the amount of money that you are willing to spend for the sake of buying old coins. Remember, a coin collection is not just a collection of old pennies but an array of very, very, very old currency used even during ancient times which means, they are quite expensive and relatively centuries old.
• What is your goal in collecting coins? For gifts? Investment? Hobby? You have to decide whether or not this collection will go on for years or it will stop at some point in your child's life.
Collection Budget
For the sake of discussion, we'll tackle about starting on a very tiny budget, much like 50-100 dollars a year. With this kind of budget, you could buy several kinds of coins namely the Mint sets which would not be more than $100. Fancy Silver Proof costs about $40 same as with Uncirculated set which would just amount at $25. You can go through the Internet and search for probable coin prices which are not that expensive and would definitely reach your budget.
Child Motivation
Encouraging your child to see coin collecting as a hobby is thin, but very much possible. All you have to do is motivate them to like coin collecting by making them realize the importance and benefit they can get from it. There are several coin types that your child can appreciate namely Buffalo and Jefferson Nickels, Mercury Dimes, Wheat Cents, Roosevelt Dimes and Indian Head Pennies. Start with these and then show it your child. Sit down with him and tell short stories about the coins. This will somehow build a certain kind of interest in him.
Safe Coin Collection
However you decide your coin collection may be - heirloom or investment reasons, or just for fun, make sure that it is safe, both for you and your child. If you're planning to stash your heirloom and investment coins at home, bad idea. You just gave yourself a pretty good reason to be robbed. Best thing to do is get a safety deposit box and keep them safe in a place where you only know or if you really treasure your coins, put it in the bank. If your kids are actively collecting coins, make sure that it is kept in a safe place where visitors or strangers will see. If your child shows no more interest in his collection, just deposit his coin album in your bank. Never leave it hanging on a drawer because burglars will definitely take it for they are very easy to sell. Always teach your child the importance of his coin collections and tell him to keep the folders out of sight especially when people are around.
By: Jon Simms
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