How To Collect Coins for Investment

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Coin collecting is one of the oldest hobbies, and if done correctly is a very smart investment vehicle. The economy is still down, and while the stock market has been up recently no one knows for sure if a correction is around the corner. Still, even if stocks remain up for the foreseeable future bullion coins and rare coins add diversity to financial portfolios. When it comes to investing, variety is the way to always be in profit.

Investing in rare coins can be a lucrative venture, however patience and learning the market is required. When investing in collectible coins know who you are buying from, because nobody wants to be scammed. Investigating the dealer you buy from before you purchase a high-end rare coin is the best way to proceed.

Financeix.com says many people sit on the sidelines when it comes to investing. Yet, the down economy has many people taking a second look at collecting rare coins for investment purposes. The way to profit from rare coins is buying the right coins at the best price possible, and then holding on to the coin for a long period of time, generally five years. This allows the coin to appreciate in value, and makes them more valuable to the coin collector market.

While rare coins are indeed a good investment, it takes time to learn the market and you must ensure you are buying the right coins. On the other hand, bullion coin investing is quite popular with investors and is much easier to get started. Precious metal investing adds diversity and balance to investment portfolios. Stocks will decline and bottom out; the question is not if, rather it is when. Yet precious metals can cushion the blow of a bad stock day.

The Gold Investment Guide says the american gold eagle bullion coin is minted by the United States government from American mined gold. Gold has been on a bull run for over a decade now, and this will likely continue through 2013. Gold bullion coins have their worth connected to the market of gold, currently around $1680 per ounce. In addition, gold bullion coins produced by the US mint are guaranteed to contain a specific amount of gold.

Some financiers invest in both rare coins and bullion coins. Rare coins containing silver or gold do hold value based on the spot price of the precious metal contained within the coin. However, if you are able to buy a very rare coin which is coveted by coin collectors you stand to make a handsome profit. This means, that rare coins have worth to coin collectors, and also have value based on precious metal spot prices.

Whether you invest in rare, bullion coins or both the best way to buy coins is from a trusted and reliable coin dealer. Many dealers have websites on the Internet, or you can call their agents and discuss your investing goals with their experts. Nevertheless, it is very important that you research the dealer before you buy, especially when dealing in high-end coins. Once you find a good solid dealer, he in essence becomes your investing partner.