Are Collectible Coins a Good Investment? - Hero Bullion (2024)

FAQs

Is it better to invest in coins or bullion? ›

While gold bars give you the best option if you want to preserve your wealth, gold coins offer the best value when selling. Of course, gold bars will offer the best value when buying but they don't give you the flexibility that you want when you want to sell.

With coin collecting, as with collecting other items, the more rare the coin, the more valuable it is. investing in rare coins has the advantage of potentially providing significant profits. However, it also has downsides to consider, including the fact that earning money investing in rare coins takes time.

The bottom line

There are several reasons to consider investing in 1-ounce gold coins. These coins are often collectible and have a relatively low cost of entry. Moreover, the potential tax and diversification benefits that come with gold coin investments can be hard to ignore.

While coin collecting may seem like a trivial hobby, the reality is that there are some coins out there that are worth so much that they can fetch thousands, or in some cases, millions of dollars.

For example, many collectors are willing to pay more than the spot price for a new American Eagle or an old and interesting Buffalo coin. Collector's coins also tend to increase in value over time as they become rarer, so this makes bullion coins an especially good long-term investment.

Both are sound investments, but investing in coins might be more suitable if you have collector tendencies. Silver bullion may be best if you're looking to invest larger amounts and lock in a stable price.

What we often refer to as 'numismatic' pieces are crafted for collecting, whereas our 'bullion' coins are manufactured with investing in mind. Both numismatic and bullion coins are made from exactly the same purity of metal – 9999 gold, 9999 silver, or 9995 platinum. In many cases, they even share the same designs.

If you're looking to buy gold coins, 1 oz is the best size to go for.

What coins are collectors looking for right now? ›

There are plenty of inexpensive coin sets to collect. The Washington quarter set has more designs to collect than any other coin. There are more than 100 designs, with the 50 States and America the Beautiful quarters. Buffalo nickels and pre-1965 Roosevelt silver dimes are also popular first coin collections.

That's what happened to several pennies produced in 1982, which pushed their value up from 1 cent to nearly $20,000. The penny in question is the 1982-D Small Date Copper Alloy Lincoln Cent, which sold at auction in 2016 for $18,800, according to Numismatic News.

Many buffalo nickels can be traded for about 50 cents but under the right conditions it could be worth over $1,000, according to coin collector David Sorrick at In God We Trust LLC. “The series itself is fairly affordable for the average collector. Yet enough work goes into it to make it worth the chase,” Sorrick said.

1796 Draped Bust Quarter: A Relic of Early America

Only a handful of these quarters remain in existence today, making them highly sought after by collectors. With a value exceeding $1 million USD, the 1796 Draped Bust Quarter is not just a coin; it's a tangible piece of early American history.

If your coin collection is pristine, the value will most likely be higher unless you have a few rare gems in the mix. Any errors on your coin such as misspellings or incorrect dates could make the value skyrocket.