Investment in bullion is usually more or less risky. Although there is a limited number of them, the fluctuations on the stock market can be quite large. This is due, among other things, to the fact that many precious metals are reused and the deposits are still not used up.
The paradox on the market, however, is that investing in gold pays off far less than in silver. The freedom of access to this gold makes people much more willing to choose it as an object of their investment. But is it worth taking a serious interest in the silver market? You will find the answer below.
Looking at what is happening in our home market, we can conclude that the most popular type of investment in silver are coins. The tendency to buy silver coins grows every year, as does the number of people who see them as a possibility of income from later sale. Some people treat this as a means of earning money quickly, but there are also people who are passionate about buying coins for numismatic purposes.
Silver coins are so popular not only because of the fact that they quickly gain in value, but also because they are extremely elaborately crafted objects. Sometimes silver is enriched with pieces of amber or coloured glass. This is quite a good way to make additional profits, but also a pleasant kind of hobby (due to the aesthetics of silver coin designs).
How to start investing in coins?
It depends primarily on the amount of financial resources that we want to allocate for this purpose.
Before we invest, we should get to know the numismatic market by reading books, articles, analyzing charts, participating in numismatic forums and, above all, through observations on auction services.
What coins to invest in
When investing coins you should remember that first of all the circulation is important. If you are interested in silver coins you should choose only those with circulations below 60 thousand pieces. In the case of gold coins, those with a circulation of less than 8,000 pieces are worth mentioning.
Numismatics as a diversified investment portfolio?
Many people decide to save 10% of their earned money for investment, while at the same time building their financial independence. The real stupidity would be to allocate all the money put aside in this way to invest in coins, because the investment portfolio should be diversified (i.e. it should consist of various forms of investment, e.g. shares, deposits, funds, land, works of art, gold, silver, coins). Financial analysts claim that the value of coins should be about 10% – 25% of the value of the entire investment portfolio. This means that a person earning $1000 should spend $100 per month on an investment, of which about $25 should be spent on purchasing coins (if a given person intends to use numismatics to create an alternative investment method).
Is it worth buying a coin when its price is in the hole?
Many people say that this is when we should buy coins – when their price is the lowest. “When everyone sells you buy, when everyone buys you sell”. – it is impossible to hide the fact that this sentence may be right in many cases. It is worth analysing earlier how the price of a given coin has been shaped over the course of several years. If we have observed an upward trend, it is probably worth taking a risk. If, on the other hand, the price of the coin did not change or systematically decreased – this is probably a sign of poor interest and here the risk of investment is higher.