• Numismatics and Saving Money

  • by Nate Nordstrom

Numismatics is one of the most intriguing hobbies/industries in the world. Numismatics is essentially coin collecting – or coin investing, as some like to refer to it. In my opinion, it is quite like investing in buried treasure. There are many different types of coins from all over the world and from all different time periods. For the average collector, it is a hobby. However, there are many who find appreciation for rare coins and use them as an investment route. For the most part, coin collecting is no different than buying gold and silver. Coins will always retain the value of the metal from which they are made, which is the cool part, even if the numismatic value does not hold on.

The part about numismatics that speaks to me is that it is both an investment route and a hobby, similar to collecting art, except less expensive (for the most part). The appreciation for coins is notable to many across the world. Many people save their change versus saving dollar bills. And when people find a coin that is extremely old, they hang onto it – even though it may not be worth much. While many are turned off or uninterested by numismatics, there are many more coin collectors than people think. In fact, “The Great One,” Wayne Gretzky, is a noted coin collector.

Coin collecting can be a great way to trick yourself into saving a money every month – even if it is only a few extra cents or a couple extra dollars. For example, if you bought one Morgan dollar every month, you’d be saving extra money (because it is made of silver), while also enjoying the hobby of collecting coins and trying to get different years and different dates to complete the set. Coins can be used as a smart way to save extra money for some people because it’s a way you can trick yourself into saving money every month. That’s because you are not only collecting something cool, it has value. The Morgan Dollar is made of silver, a precious metal, so it is actually worth more than a dollar. Depending on what coin you collect and what the cost of its material is, you may have something worth hundreds. Even if they don’t grow in value, they’ll always hold their face value. So, after collecting 100 quarters for a few months, at the end, you’ll at least have $25.

One of the best parts about coin collecting is that coins hold their value really well and are not as volatile as gold and silver prices. People often will pay a premium for a rare coin because it is rare, not because there is silver in it.

Coin collecting is not for everyone, but it is worth a try. It can take you around the world and teach you about history and culture. It can also be an investment. What you use it for is up to you. And either way, if you ever find yourself in a financial jam, you could look to your collection to help you out – depending on what you’ve saved.