Coin collecting, like stamp collecting, is a hobby suitable for all ages. There are several things that need to be taken into account, both positive and negative, before starting collecting coins in earnest.
Building up a varied coin collection is easy enough for someone who travels to different continents. But a coin collector who is selective about what they collect will have a better chance of benefiting financially, though that will require significant investment. The advantage of being knowledgeable about coins, especially rare ones, will give a collector a head start over a collector who goes into his hobby ‘blind’.
The Casual Collector
Some collectors will be casual about collecting coins, to the extent that it can hardly be considered a hobby at all. They will just hoard coins that come their way, in the hope that they will be fortunate enough to be the recipient of a coin that is valuable. This type of collecting relies on little effort, but it may well prove to be stressful at some point. If this type of collector runs into money problems, then they may start searching desperately through their coin collection, only to end up disappointed.
Collecting coins should really be something that actually interests an individual. Then if their collection never amounts to much, in financial terms, at least it’s still been time well spent, and any disappointments will not be so acute.
The Investor Collector
For the investor collector, an incentive to collect coins is that the worth of coins tends to stand up over time. As with real estate, coins don’t normally decrease in value. Coins are a good collectible to invest in, and one of the simplest reasons is that they are virtually unbreakable. A porcelain figurine may look beautiful, but will obviously become worthless if it breaks to the extent that it can’t be fixed. Thus, coins are easier to insure.
The investor collector may also consider turning his or her coin collection into liquid assets. But a collector will need to have enough liquid assets in the first place to purchase coins that are valuable enough.
The Professional Collector
The professional collector will often be interested in collecting coins for a mixture of reasons, including their aesthetic quality and their history. Some coin collectors, or numismatists have an interest in collecting all sorts of things related to money, including banknotes and cheques, as well as coins.
Coin collecting is not an easy way to make a fortune. But it is an enjoyable hobby, and some collectors would never dream of parting with their collection for money anyway.