Entrepreneurs are getting younger these days. It’s not surprising to see 20-somethings creating innovations, starting their businesses, investing in the stock market, and more. If you’re a young entrepreneur looking to diversify your investment portfolio, you should consider investing in coins.
But are they worthy investments?
Investing in Coins: How It Works.
Investing in coins is a lucrative hobby and an excellent way to diversify one’s investment portfolio. You can start investing in coins by purchasing gold coins, but you can also buy coins made from other precious metals like platinum, silver, and palladium.
Silver coins are an example of a worthy coin investment. Although silver coins ceased to be legal tender decades ago, it has become one of the most prized items for hobbyists and collectors. One of the most popular silver coins, the American Silver Eagle (ASE), is highly valuable for those involved in coin investing. It can be bought directly from reputable dealers like Gainesville Coins, online marketplaces, or direct from the U.S. Mint.
To invest in coins, one follows the “buy low, sell high” strategy in stocks and forex trading. Buying and selling precious coins require knowledge studying coin price guides and reading market reports. Your goal is to build your coin collection and treat it as a long-term investment. The value of precious coins, especially the rare ones, are expected to increase over time.
Reasons to Start Investing in Coins.
Now that you know how investing in coins work, find out why young entrepreneurs should start diversifying their investment portfolio with precious coins.
1. Gain Profit.
Let’s start with the most important reason: to make a profit. Although coin collecting may seem like a hobby that your grandpa would get involved in, the truth is, you can gain a massive advantage from it. Coins, in general, appreciate in value over the long term for a variety of reasons:
Age and Rarity: The older a coin is, the more likely that there are fewer of its kind in circulation, which will make it more valuable. This is especially true if a certain coin was only circulated for a brief time. A good example is the 1933 Saint-Gaudens Double Eagle, which was ordered for recall by President Roosevelt for melting. Apparently, around a dozen were never returned and some resurfaced in the 1990s. A 1933 Saint-Gaudens Double Eagle was sold at an auction for more than $7 million in 2002.
Material: The market value of a coin is also determined by the material used to fabricate it. Gold coins are naturally more expensive than silver or copper coins.
Condition and eye appeal: A coin in pristine condition is more likely to fetch a higher price than one with damage or deformities.
2. Rare Coins Are Stable Investments.
Numismatic coins, especially the gold ones, are a good hedge against currency devaluation and inflation. Young entrepreneurs should invest in physical assets, including silver and gold coins, to balance their investment portfolio. Stock investors do not have any control over economic and political conditions that affect the stock market. Investment coins, on the other hand, allow young entrepreneurs to have complete control over their coin portfolio.
3. Increase Your Knowledge.
You can learn so many things when you invest in coins. First, you will gain more knowledge about the market, how to buy low, and how to sell high. Apart from understanding the market value of coins, you also learn about the facts and history of the coins you collect. You can discover so many things about cultures, society, and politics when you collect and invest in different coins.
4. Help You Become Better at Challenges.
Young entrepreneurs handle business-related problems daily. Investing in coins may sound boring, but it helps you develop traits that you need to become a successful business person. To grow your portfolio of investment coins, you need to be patient and determined in looking for reputable sources of investment-grade coins. Collecting and investing in coins require patience and determination — both of which are essential in running a business.
5. Pass onto the Next Generation.
Think of your coin collection as an heirloom that you can pass onto the next generation. Even if you’re a startup business owner or a successful entrepreneur, your goal is to have the right mix of investments that you can give to your family and children. Growing a business is hard work and involves plenty of risks. Investing in coins are less risky compared to stocks since the value of rare coins generally increase over the long term and is not affected by volatile market conditions. It gives you peace of mind knowing that you’re putting some of your hard-earned money on a sound and stable investment.
Remember that investing in coins, similar to other types of investments, have risks and disadvantages. The value of your coins can increase, but it can also go down. But in general, precious metals will always be a safe and lucrative investment.
To be successful in coin investing, you must be willing to understand how the market works. When the market is down, you can enjoy your collection while waiting for the market to recover. Investing in coins is an excellent way to make money, but make sure that you don’t spend all your money there. The proper diversification of your investment portfolio is possible by investing in coins.