Hoarding coins is rapidly becoming a popular form of investment. Here are some tips to make coin hoarding work better for you.
Since I was a young girl, I have been interested in coins. I have a rather amateur coin collection. I like looking for older coins, and I enjoy collecting coins from other countries. However, I've never been much into hoarding coins. A movement, though, is growing for coin hoarding.
Why is Coin Hoarding Growing in Popularity?
One of the main reasons that it's becoming popular to hoard coins is due to the fact that a number of economic factors point to the idea that inflation could be coming — and coming soon. Base metals, like those found in some coins, are expected to rise in price as the purchasing power of the US dollar decreases. Nickel hoarding is becoming popular because the metals contained in nickels are worth more than the face value of the coin. The same is true of penny hoarding.
If you think that all the recent quantitative easing will lead to hyper-inflation and serious currency debasement, or if you think an economic collapse is coming, it can make sense to get into hoarding coins. After all, if you think that our fiat money system can't survive, having tangible coins — with increasing valuable base metal content — makes sense.
Tips for Coin Hoarding
There are many different ways to get involved with base metal investing, from investing on the commodities market to buying appropriate ETFs. And, of course, you can get into coin hoarding and keep the tangible results of your efforts. Here are 5 tips that can help you coin hoarding:
- Know Where You Will Keep Your Coins: One of the biggest challenges of hoarding coins, whether you buy gold and silver coins, or collect coins with base metal content like nickels and pennies, is knowing where you will keep them. You can keep them in barrels in the garage, or in a safe, or buried in the ground. You can also pay for storage. There are companies that will allow you to buy lots of coins — sometimes by the ton — and then charge you a small monthly fee for storage off site. Figure out where you will keep your coin hoard, and recognize the pros and cons of self-storage vs. paying someone else.
- Understand the Metal Content: When hoarding coins for the base metal content, it's important to understand what's in the coins. For example, pennies minted after 1982 don't have a very high copper content. As a result, the value of the metals in them aren't as high. Do your research into the metals that are used to make the coins, and be discerning about which coins you hoard. If you buy large lots, make sure you know what's included. Many bulk sellers will put a large number of zinc pennies a lot, or they won't go through the lots to make sure that most of the pennies have the higher copper content.
- Consider Collector Value: Remember that many of these coins have some collector value. It can be worth it to check into the collector value of your coins. Since it's currently illegal to melt down US coins, and you can't carry or mail large quantities out of the country (to be melted down elsewhere), it's worth it to determine whether or not you might have valuable pocket change. Consider collector value, and consider selling some of your coins on that basis as well, if you happen to have something worth selling.
- Buy Foreign Coins: Another option is to buy foreign coins. You will, once again, want to research the base metal content, but some foreign coins are made from metals that make their value more than face value. You can find foreign coins on eBay, and through other sellers, as well as keep them from trips you make to foreign countries. Buy coins from countries where the dollar is worth more, and you could end up with quite a quantity of coins.
- Look for Good Prices: If you are going to buy large lots, you want to look for good prices. Like everything else right now, the prices for coins are in flux. From collector coins to lots of coins, prices are changing constantly. Be on the watch. The first rule of investing — buy low, sell high — still applies when you are hoarding coins for the base metal value.
What do you think? Are you into coin hoarding? And what do you recommend for getting the best value?