Coin collecting has been around for ages as a hobby that can be both fun and profitable. Many people may be familiar with the fact that rare coins can bring you a lot of money when you decide to sell or trade. However, did you know that buying coins can actually be a solid, safe investment?
There are many types of coins out there for collecting, but bullion coins are pretty much guaranteed to bring you a profit while protecting your money from inflation and times of economic hardship.
Precious metals are considered a store of value, because their values are independent of the performance of fiat currency. A bullion coin may have a face value stamped on it, but this is for appearances only. These coins are worth the amount of their pure content. Say you bought a silver American Eagle bullion coin from a reputable silver coin dealer a couple of years ago. This coin contains one troy ounce of silver. Though this coin is stamped with a face value of one dollar, it is actually worth $18.33 right now, because this is the current price of an ounce of silver.
Buying bullion coins in gold, silver, platinum, and palladium can be a great way to invest without spending huge amount of money initially. It can become a hobby that you share with your whole family. Some bullion coins are even beautiful works of art. Most countries have their own specific coin that is unique to that country in its design, including American Eagles, Chinese Pandas, Canadian Maple Leafs, South African Krugerrands, and Vienna Philharmonics.
Your silver coin dealer may also suggest investing in “junk” coins in the form of a 90% silver U.S. coin bag. The phrase “junk coin” can be misleading, because the coins inside are definitely not junk. The bag is made up of dimes, quarters, or half dollars that were minted prior to 1965. This is the year that the U.S. Mint stopped including silver in these coins, because the value of the silver surpassed the face value of the coin.
Let’s say that you have a 90% silver coin bag that has $1,000 worth of quarters based on their face value. The fact that that bag contains about 715 ounces of pure silver inside means that the actual value of the coins inside is much more than $1,000. If the price of silver right now is $18.33, then the total value of the coins is actually $183,300.
Find a reputable gold, platinum, or silver coin dealer today and begin a coin collection that will really pay off!