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The majority of individuals desire a hobby or pastime that has no clear end, and coin collecting fits that description perfectly. The number of types is practically limitless, just within the realm of collecting British coins alone, for example.  

People become addicted to collecting coins for a variety of reasons, including an interest in specific design types, historical eras, variations of a particular type, coin manufacturing, or obtaining every date, etc.

Some of the most common reasons for coin collecting are listed in this article. Let’s get into that. 

Why Do So Many People Collect Coins? 

The hobby of coin collecting has persisted into the present day since ancient times. When middle-class people could acquire US or UK coins in the 1800s, coin collecting became more popular. 

Related Lingo: The term for the act of collecting coins is ‘numismatics‘, while someone who collects coins is called a ‘numismatist’.  

What type of collecting appeals a particular person has depends on their personal interests. The intrigue and backstory of the people and civilizations who formerly used these coins in daily life appeal to coin collectors who focus on a specific region, time period, or nation. 

When you hold an antique coin in your hand, you have a connection with history and culture and may envision how it was once utilized to purchase necessities of existence. 

Many coin collectors view collecting as a hobby rather than an investment, while others regard it as a means of earning some extra money. If you’ve discovered your motivation for wanting to be a coin collector, begin wholeheartedly collecting coins right away, and enjoy including them in your everyday life as a hobby or investment. 

Coin collectors have a variety of motivations for collecting coins, and they frequently begin in one area of interest before branching out into another. Here are 10 of the main reasons for coin collecting – 

1. Coin Collecting Is Super-Easy And Convenient: 

The fact that anyone can start collecting coins is one of its perks. A coin is a form of currency that every country issues, making it extremely accessible and available. 

Most people in the world have access to at least 3-4 varieties of coins on a daily basis. It’s all too easy to start looking through those coins in your wallet or change containers to choose which ones you would like to keep. 

Also, the fact that it doesn’t need any significant investment to start makes it more convenient and lucrative to the mass. Coin collecting on a basic/entry level is an inexpensive hobby until, of course, one becomes more fervent about it. 

2. Coin Collecting Is Great Fun And Relaxing:   

Adults and children alike will enjoy doing it. Putting together a coin collection or researching the history of a particular piece can help you forget about the pressure and stress you face throughout the day, nearly every day. Ultimately, that’s what hobbies do to us. 

3. Coin Collecting Can Be An Investment Instrument: 

Coin collections can also be used as an investment mechanism that can potentially diversify your portfolio. A reliable coin dealer can enable you to add value to your investment by trading precious gold and silver coins. 

Experts say that the risk factor associated with an investment strategy can be reduced by investing in bullion coins made of precious metals. These coins’ values will change along with the price of the metal. Fortunately, metal prices tend to rise frequently, especially in a fragile economy like now. 

Tip For Investment: 

If your goal of coin collecting is solely financial gain, you must become thoroughly knowledgeable of the rare coin business. Prices can be hugely impacted by changes in supply and demand for coinage. 

Additionally, familiarize yourself with the coins you are buying. Before making any coin purchases, grab a book or perform some online research.  

4. Coins Are A Profitable Saving Even Outside A Direct Investment: 

The monetary reward of collecting – well, money, is sometimes the most appealing aspect of coin collecting. You don’t need to acquire all those gold bullions or rare sterling silver coins with great historical value in order to get a decent monetary return from your collection of coins. 

There are 3 ways your seemingly plain and inexpensive collection of coins can bring you a monetary (most of the times, profitable) return – 

I) More Time, More Value:

Even if a box full of pennies may not appear thrilling or valuable right now, their worth will rise over time. Any random copper-nickel coin from even a couple of decades back has an appeal to a devoted collector, and its collection value frequently exceeds its face value by a significant margin. 

That’s because coins gain value through time, just like old paintings do. Therefore, if you want to make more money, you can sell your coins after a considerably long amount of time. That way, you can get at least 10-15% more than the coin’s face value – for example, you may get $1.15 for a coin with a face value of $1. 

Many collectors create a series of coins in their collection based on date or year and are interested in even steel or nickel pennies, cents, or quarters from the 90s.

II) Less In Number, More Value:

If you’re thinking that holding a coin long enough isn’t possible for you, therefore, your coin won’t be sold for a premium (a higher price than its face value), then let me tell you that this is not the case. Even a newly minted coin made of ordinary metal sells at a premium if its availability is low. 

Countries with a low number of coin mintages are quite popular among collectors. So, for example, if you have a currently circulating regular coin from Fiji, Nauru, or even Mauritania, you can get 20-50% higher than its face value, at least. 

Additionally, some special coins, such as commemorative ones, almost always sell at a higher price than their purchasing rate, regardless of time. 

III) Money Begets Money: 

Apart from all the scenarios mentioned above, you can easily liquidate your coin collection for face value if you want cash instead. After all, 99% of all coins are currencies in the very first place. You should not be surprised to know that some people primarily collect piles of coins as a means of storing money! 

Most coins not only increase in value but also ensure that you’ll get the entirety of your monetary investment back if you decide coin collecting is not suitable for you after giving it a try – this is unlikely regarding most other types of hobbies or investments. 

5. The Hobby Of Collecting Coins Throws A Unique Challenge:

It’s basic human nature to want to pursue things through to their end. Successful coin collectors start by deciding what they hope to collect. When they find the right coin for their collections, the thrill of the chase often makes them happy.  

For some collectors, the quest for the ‘perfect’ coin is simply a challenge they enjoy pursuing. Any coin can be bought with an unlimited budget. The true issue for collectors is locating that coin at an affordable price.

Along with the difficulty of obtaining the ideal coin, numerous collectors today also act as modern-day treasure hunters. Just picture yourself using a metal detector while strolling down the beach and coming upon an abundance of coins worth a fortune or perhaps more. Despite being incredibly unlikely, it is nevertheless worthwhile to hope for.

6. Collections Are Legacies Passed On To The Next Generation:

Be it coins, notes, books, cars, or just anything people can make a collection of, many do it so they can leave something behind for their children and grandchildren. The next generation will be able to remember you and your legacy through the collection of coins you have preserved over the years. 

They might even recall receiving a special coin from you – memories that will fill their hearts with a certain kind of warmth. 

Additionally, a skillfully planned coin collection that is driven by investments may end up providing your heirs with a significant inheritance. Rarely do coin collectors immediately become wealthy, but with proper planning and consideration, rare and precious coin investments can grow in value over time. 

7. Coins Display Beauty Of Art:

Coins are no short of an artwork masterpiece like a nice painting or statuette people tend to decorate their drawing room with. Or perhaps, like the fine-detailed jewelry we wear to enhance our fashion statement.

A collector appreciates each coin’s intricate design and aesthetic appeal. Some coin collectors define beauty as brilliance and perfection, while others look for coins with captivating motifs or compositions. 

8. Coins Carry History And Cultures With Them:  

Nearly all coins include a historical aspect. It might depict the coronation of a monarch on a medieval currency or the victory in an ancient war celebrated and immortalized on a Roman Empire coin, for example.

Colonial coins produced in the US prior to the formal establishment of the United States Mint are tangible representations of American history. The same is true of coins found in pirate treasure and shipwrecks from many centuries ago.

In addition to the historical significance, knowing and understanding other nations and cultures around the world are made possible through world coins. Coins provide information about the country of origin, the language spoken there, the administration, the religion practiced there, the economic situation, and the title of the sovereign who issued them. 

9. Coins May Be Collected Solely For Their Metal Content: 

Many coin collectors only look for coins to collect with this thought in mind because platinum, gold, and silver always are increasing in value as a result of their limited supply in the world. This is different from investing in bullion or rare gold/silver coins. Here’s how – 

Unlike bullions or rare coins, collecting random coins only for metal content doesn’t concern itself with what kind of coin and how rare it is, what condition it is in, how unique or intricate the designs are, or the amount of precious metal found in it, etc. Many people are surprised to learn that they probably handle valuable coins regularly. 

Do you know that the majority of American coins produced before 1965 contained 90% silver? Few individuals are aware of this and fewer are smart enough to keep such coins when they get the chance. Pre-1965 quarters alone had a silver worth of almost $4.00 as of this writing. 

Additionally, heavier coins have a higher value. So, keep an eye out for these to begin your collection. 

10. Experts Collect Coins For Professional And Academic Purposes:

Numismatics has developed into an academic discipline of study and a profession in the sectors of artifacts, antiques, economics, and finance since coin collecting contains a rich background.

The systematic collection and study of coinage, paper money, tokens, and other items with similar forms and purposes are performed by academics and professionals in the aforementioned fields. Coins help them develop skills and expertise in their respective works. 

Bottom Line:

No matter what someone’s motivation for collecting coins might be, it’s a well-established fact that coin collecting is one of the most, if not the most common, and frequently practiced collecting hobbies ever. 

If you are a coin collector or want to be one, we look forward to assisting you in every phase of your journey and amplifying your enjoyment along the way as much as possible. 

FAQs:

Is There Any Point In Collecting Coins? 

The primary point in collecting coins is as a hobby or pastime activity that many people enjoy pursuing. Now if you talk about hobbies, they don’t always necessarily need to make sense to others. They are mostly for gaining personal pleasure and a feeling of accomplishment for collectors. 

Having said that, there are multiple other reasons big enough to influence people to start collecting coins. In this modern era of the free market and widespread technology, many people deem coin collecting as a financially profitable venture plus a tool to diversify and enhance direct investments. Such monetary rewards are a predominant reason why more and more people are getting into collecting coins over time. 

Is Collecting Coins A Good Investment?

Due to the difficulty and high cost of obtaining really rare or old coins, coin collecting is generally more of a hobby than a full-fledged investment. In the course of regularly collecting coins, you may come upon a few valuable items, but actively buying coins can often be risky.  

You can purchase gold and silver coins from reliable and trustworthy providers and store them. You can later sell these coins for a higher price when the price of gold and silver increases. Gold and silver coins frequently have a higher value than their face value. Regardless, you have put your trust in their authenticity and accept the possibility that their value won’t increase much more in the future. 

When purchasing coins for actual investment value, you should take the probability of loss into account, just like with any other investment. Furthermore, consider how far the value can rise from where it is today, and whether selling them at a later date will actually be possible for you. 

Why Is Coin Collecting A Hobby?

Given the constant availability of new coins, coin collecting is a hobby that can span a lifetime. Coin-collecting strategies are as varied as coin collectors themselves. The choices are limitless, and there’s always something different and new to collect. This aspect of coin collecting gives the hobbyist recurring excitement, and more people start pursuing it as time passes.

One of the other most fulfilling aspects of coin collecting as a hobby is the sense of ownership of a priceless collection. Furthermore, when a task or goal of collecting a particular coin is accomplished, the collectors feel good about themselves. Finding a valuable coinage in the pocket change can also provide happiness. Ultimately, people take up what gives them happiness as hobbies.