In truth, there are probably substantial numbers of traditional collectors who prefer to acquire coins destined to increase in esteem and value over time; treasured heirlooms and a source of pride to be passed from one generation to the next. On the flip side of this equation, it seems implausible that anyone would buy a coin with the hope or expectation to see it stagnate or decrease in value. Indeed, any commentator who suggests the words “investment” and “coins” should never appear in close proximity to one another is ignoring a heavily populated segment of our hobby.

Now that we’ve established that it’s not numismatic heresy to seek coins with strong upside possibilities, let’s get down to basics. The guiding principle is simple: Any coin that has demonstrated solid, consistent gains over a long period of time is likely to show continued growth in the years ahead. Easily said, but as we shall soon see, not so easily put into practice.

So exactly how does a one identify coins with a potentially bullish future? The best clues are revealed by analyzing the retail value trends over a long period of time for a given coin. Observing current prices alone does not yield enough information to correctly evaluate prospective price movements. What was the coin selling for two or three years ago compared to today? Dig deeper, and find the market price for the same coin 5-10 years ago. While you’re at it, get something from 20-30 years or more in the past, too. The more good data researched, the more reliable will be your final conclusions. Now whip out your spreadsheet and chart the numbers, or compute annualized rates of return. Flat or negative trends are bad. Positive trends are good. Steep positive trends are best. Any coin displaying a proven annualized growth pattern of at least 5-10% over a span of many years qualifies as an attractive option for the collector desiring coins headed for much higher price levels a few years down the road.

During the course of my lengthy numismatic career, I’ve researched the long term value trends of most collectible US coins. Thanks to my trusty computer, I’ve calculated annualized compounded percentage return rates and honed in on a handful of coins that have consistently beaten the overall coin market averages. Unfortunately, the blue-chippers are scarcely encountered. Perhaps it is this fact that explains why so many well-intentioned hobby purists scorn the idea of blending coin collecting with the profit motive.

Individuals whose objective is to satisfy their numismatic pleasure by assembling a collection certain to be the envy of tomorrow’s collectors must do their homework today. Remember to research historic value trends and evaluate growth potential based on previous performance. One last word of advice… never loose sight of the fact that you are handling artifacts of America’s past, and that all of us are merely their temporary custodians. Respect these coins and the history they represent, and you’ll always discover new avenues of adventure not found in most other investment opportunities.

Daniel J. Goevert is the webmaster of US Coin Values Advisor (http://www.us-coin-values-advisor.com/), specializing in coin value trends and listing bullish US coins. Other offerings include detailed coin collecting advice plus an illustrated history of the United States and the US Mint.
Article Source: Hobbies

So you can’t wait to start collecting coins. Welcome to a fantastic hobby that will last your lifetime. Something you can pass on to your children and grandchildren.

Don’t Panic. It is a very simple hobby to begin. And will be a lifelong adventure as you grow your coin collection over the years. The thrill of a great find is absolutely terrific.

First off; go and visit the library. Pick up some of the standard reference books on coins. Some examples are:

A Guide Book of United States Coins 2006: The Official Red Book by R. S. Yeoman, Kenneth Bressett

The New York Times Guide to Coin Collecting : Do’s, Don’ts, Facts, Myths, and a Wealth of History by Scott Travers (Foreword), Ed Reiter

The Official Blackbook Price Guide to U.S. Coins 2005, 43rd Edition (Official Blackbook Price Guide to United States Coins) by Thomas E. Jr Hudgeons

Read them thoroughly along with as many other coin collecting books you can find. You will find a wealth of knowledge and ideas. There is no need to guess with so much information available.

Next search for and join some clubs and organizations. Stop by a local coin dealer to get the best recommendations. Become a member and buy some magazines to repay them for the help. Just talking to the people at a coin shop can really assist the beginner.

Now that you have done some homework, it is time to choose what you want to collect. You can have general collection but you will get much better results if you specialize in one area at a time.

Follow what interests you. Learn everything you can about your specialty. You can collect coins from a country or time period, or themes, like animals, airplanes or states. Silver dollars are popular as well as $100 gold coins, tokens, bi-metallic coins. You can collect coins with flowers on them or coins with a specific person. The possibilities are endless. Collect gold rush coins or commeratives like the olympics.

You can also collect coins for specific years like the birth of a child or a graduation year.

Study at your own pace and you will have more and more fun as your knowledge of coins grows. Once you learn what to look for, how to spot quality coins at bargain prices, how to speak coin, and bargaining for coins it is a great hobby for all. Getting a big “find” is one of the thrills that keep coin collecting interesting.

Get out there do a little research and have fun as you build a coin collection that others will admire.

For more info on this hobby be sure and check out our directory of great websites to assist the beginner. http://www.coinsandcollecting.com has quite a few resources for the new coin collector plus a directory of hand picked websites to find expert level tips.

Michael Johnson operates a variety of collectible websites and newsletters. Visit the website for many coin collecting tips. http://www.coinsandcollecting.com.

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