Are you trying to find a unique investment option? Are you trying to find a great asset that can potentially bring in a huge pile of cash within a few years?
Well, you might not have to look further than cash and coins themselves! One of the most unique investment opportunities is to collect vintage currency.
Both types of old money, whether paper money or coins, can often appreciate far beyond their face value.
Here’s what you need to know about coin collecting and gathering old paper money:
Why Vintage Currency Is Valuable
One reason why even seasoned investors hesitate to buy vintage currency is that they worry about liquidation. It’s true that there are fewer interested buyers for vintage currency compared to other assets such as precious metals.
However, what makes old money valuable is that they are rare. While buyers might be few and far between, they’re willing to spend top dollar on old Federal Reserve Notes, Pound Sterlings, Francs, Pesetas, Rupees, etc.
You’ll have to spend more effort finding buyers for your vintage currency. However, due to their rarity it’s often one of the best investments you can make.
What you should do before buying old money is to find interested buyers in your area. Ask them what type of old money they’re most interested in. You can focus on sticking to buying what your local buyer market wants.
You can also look online to find vintage currency collectors across the globe. Online marketplaces can give you a great idea of what types of old money is most popular among collectors.
Acquiring Paper Money
Now let’s look into acquiring paper money as part of your investment plan. When you buy paper money, you want to focus on notes that are out of circulation.
For example, let’s suppose your country’s central bank decides to stop issuing a particular denomination of a banknote. If you own these banknotes, then you should keep them aside.
Don’t spend them even if they’re still considered legal tender. It’s possible that these banknotes might become valuable within a few decades.
One of the cheapest options at present is to buy older European currencies from nations that have adopted the Euro. These currencies such as the Deutschmark, Peseta, or Francs, are old money but aren’t yet vintage.
As such, it’ll be rather cheap to buy money printed in the 1990s and early 2000s before the widespread adoption of the Euro. This paper money won’t be valuable now but might become valuable within a few decades.
If you have disposable income, consider buying paper money from a previous century. As a beginner, stick to one country or region when buying paper money.
For example, you can buy Confederate money or banknotes from Colonial America. You can also buy old UK Pound Notes or paper money from different colonies within the British Empire.
These will be among the most expensive banknotes to buy. However, in the long run, you might be able to sell these banknotes for a six-figure sum within a few years.
The next aspect of investing in vintage currency is to start coin collecting. Many investors like to focus solely on coin collecting and many buyers are more eager to buy coins than paper money.
In many parts of the world, there’s a drift toward a cashless society. In such societies, it’s often the coins that go before the paper money.
As a result, you should try not to spend coins if you can help it. If you have any spare change, keep it aside and don’t spend it or convert it to cash.
As with paper money, start collecting coins that are out of circulation. Once again, the easiest route is to buy old European coins from nations that have adopted the Euro.
When you buy old coins, you want to ensure that they’re of pristine quality. While you can get away with a torn banknote, a stained coin can lower its value. You might lose the potential to earn several thousand if your coin isn’t in the best shape.
The best route is to use an online retailer that specializes in selling old coins. They’ll validate the authenticity of the coin and will provide details on the quality of the coin. You can check out the collection of survival coins from CMI to start your investment journey.
What to Look For
Let’s wrap up by looking at some of the features that make paper money or a vintage coin valuable.
Money that has images of persons is more valuable than images of landscapes or buildings. As a general rule, you should always choose paper money or coins that show a historical figure’s face rather than a piece of architecture.
Money from “former” countries is often the most valuable. This is why you want to buy Yugoslavian currency or Soviet currency. These are more valuable than money from the modern-day countries that were born out of these larger nations.
Next, you want to look at the artistry on coins and banknotes. As a general rule, the more intricate the design is the more valuable the vintage currency will be.
If you find high denomination notes or coins, these might be valuable. Many central banks have issued these high denomination monies during periods of hyperinflation. Collectors would love to get their hands on a 500,000 Yugoslavian Dinar or 100 Trillion Zimbabwean Dollars!
When focusing on coin collecting, stick to coins made from precious metals. For example, all silver-colored coins minted in the United States before 1965 are made of 90% pure silver! These are far more valuable than coins made of base metals such as nickel.
Start Your Vintage Currency Collection Today
Now you know that buying vintage currency is a valuable investment and how to start your collection.
When focusing on paper money you want to set aside all uncirculated currencies. The best option is to buy paper money from former countries. You can start, however, by buying paper money from European countries that have adopted the Euro.
With coin collecting, you want to choose coins made of precious metals. Ensure that the coins are in pristine condition if you want to sell them in future.
You can learn even more about vintage currency on our blog!