Coin Collecting: Mad Money or Pennies?

“How to make money?” Coin collecting!

As a child, I collected stamps (and was even president of our grade school “stamp club” - with all the benefits of getting out of fourth period math class to discuss the latest in philately). My grandfather, on the other hand - was more of a coin guy. These days, I’d wager his collection is worth more - as coins have been around a lot longer than stamps! So, the question I pose is: how profitable coin collecting be as an investment? The consensus seems to be to that if collecting isn’t a labor of love, then perhaps the long term payoffs simply aren’t worth the effort.

Martijn Buurman

I think it is not too profitable. You have to consider that a lot of coins take 50 years or longer to become rare. The only option in my opinion is to buy a collection from somebody who has not got the slightest idea of what he is selling (”I inherited this collection from my mother in law”). But that chance is very small….

Mathew Shember

You really have to know what you are doing. I knew someone who did it rather willynilly and didn’t make much more then he spent.

Scott Thompson

As with all “collectibles” collect them because you enjoy them. They are after all called collectibles not investables! If they do increase in value great if not you get to enjoy them even longer!

Anatoly Reznik

I don’t think it can be profitable unless you spend a lot of time researching and traveling to tradeshows and conventions. However, just like most things if you put your mind to it, you can make it happen. Here’s a link to a good article for beginners.

Stephen Dyer

Numismatics is a hobby, not an investment opportunity.

I must admit, though, that the commercials for buying “rare” or “limited edition” coins are fairly funny.

William Vu

I think that being involved with collectibles depends on the ability to buy or acquire at wholesale and sell at retail. Not buying at retail and hoping to sell at higher retail later. Salvaging a ship with $500 million in gold coins might be a good investment. With that said, generally, the best, most desired and most expensive collectibles, are able to increase in value beyond inflation. Rare precious metal coins, Old Masters painting, the Honus Wagner baseball card and the like would probably be your best bet, but this requires a lot of money and effort. Remember, these are not liquid investments with established markets by any means.

Tanya Bronstein

You can invest in hard currency, which can be profitable — especially in recent years since the price of gold and silver has been on the rise (for example, gold has doubled against the dollar since 2001). Thus, for me, buying coins has nothing to do with numismatics; it’s more about having gold and silver as a physical asset. (I hate to quote Wikipedia, but I’m short on time — gotta take off my tin foil hat before anyone notices — and maybe you could use it as a start).

Kathy Gill

Like most people who have already answered, I think coin collecting is a hobby … but it can be a very interesting touchstone with the past. I had a friend who always gave a mint set of that year’s coins to high school graduates as their graduation gift. Assuming that they didn’t lose it … it was more valuable 25 years later, in a sentimental way, if nothing else. :)

I’ve started putting together sets of coins (like the US state quarters) for nieces and nephews … as gifts sometime in the future. But for investment, I’d probably be better off buying them blue-chip stock. ;-)

Kannan Ramasubramanian

I think collecting coins can be hugely profitable. You could even become a billionaire. Of course, you need to collect **lots** of coins…

Maybe I should go with Beanie Babies, instead?

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