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But what are some of the reasons one should not collect coins?
Following is my take on this.
Some reasons coin collecting isn’t for everybody.
#1 – Coins are not a “sure” investment.
Okay, we have all heard before that coins make fantastic investments. You know what, that’s right — they are great investments. But they are not “guaranteed” investments. Nothing is.
We have learned that in the past year with real estate. And we were taught that lesson in the early 2000’s about so-called dot.com tech stocks. And, we also experienced the bad times in the coin market in 1989 and 1990 — when certain investment-level coins plummeted in value in a matter of days.
A look at coin value guides from years ago shows that, over the long term, most coins do generally appreciate in value. However, the increases may take many years for significant growth in values. The price elevations may beat inflation and the stock market returns, but not necessarily pay for your kid’s college tuition next year.
Invest in coins carefully and for the long term, not necessarily for guaranteed, short-term investment performance.
#2 – Coins can be expensive to collect.
While it is highly possible to collect coins on a tight budget — and many blue collar, working-class people build very large and interesting coin collections without having to take out loans for the hobby — it can also be very hard to build the kind of coin collection your heart desires if your name is not Rockefeller or Gates. No joke.
If you have your eyes set on collecting gold coins but you work a minimum-wage job, you may find it frustrating when you realize you may spend many, many years saving up to buy even one or two certain gold coins. The same goes for those entering the hobby who are determined to acquire rare coins, some old coins, or investment-level coins.
While persistence is key, and most anyone with enough patience and the ability to save money can manage to squeak out an expensive coin purchase at some point down the road, you may want to readjust your coin goals (or even stay away from the hobby altogether) if all you will settle for are rare, pricey coins, yet all you can find in your pocket are moths and lint — and you balance the books with red ink.
#3 – Coins can raise insurance premiums.
Kind of like that red sports car that increases what you pay for auto coverage, owning expensive coins can usually raise your home insurance premium — if you claim them, of course.
The quandary is, if you own expensive coins, why would you not want to have them insured?
Protect your investment and get insurance for your coins if your policy covers them, but beware that you likely will see a noticeable increase in your premium once you begin claiming such valuable collectibles.
#4 – Coins can be a hassle to store and protect.
Collecting coins is not usually as simple as stowing away a bunch of pennies in a jar — though some people prefer to go about the hobby that way.
Preserving coins properly requires space and money. You need to buy albums and holders — often expensive — to keep your coins housed in a safe, inert environment.
And where will you put these coins? You better find a good spot, because most coins don’t like moisture, extreme temperatures, dirt, grime, dust, pollution, pets, or immature hands. It may be difficult to find a safe, dry, clean, cool location in your house or apartment. And if space is highly limited, then you may find your coin collection growing to the point that it is pushing you out of house and home.
Believe me, it has happened before. Have you ever heard of those people dropping off truckloads of pennies at the local bank?
I’m the Coin Editor here at TheFunTimesGuide. My love for coins began when I was 11 years old. I primarily collect and study U.S. coins produced during the 20th century. I’m a member of the American Numismatic Association (ANA) and the Numismatic Literary Guild (NLG) and have won multiple awards from the NLG for my work as a coin journalist. I’m also the editor at the Florida United Numismatists Club (FUN Topics magazine), and author of Images of America: The United States Mint in Philadelphia (a book that explores the colorful history of the Philadelphia Mint). I’ve contributed hundreds of articles for various coin publications including COINage, The Numismatist, Numismatic News, Coin Dealer Newsletter, Coin Values, and CoinWeek. I’ve authored nearly 1,000 articles here at The Fun Times Guide to Coins (many of them with over 50K shares), and I welcome your coin questions in the comments below!