The Difference Between Stacking and Collecting Coins
When the idea of purchasing precious metals coins arises, many people use the term “coin collector” and “coin investor” interchangeably. While there may be some overlap of the two groups, they are actually quite different with different interests and objectives. We’ll take a look at the key differences and discuss whether one group is better than the other.
Collectors
A coin collector is a person who will buy and trade coins primarily because of the interest in the coins themselves. The reasons for the numismatic interest include design, rarity or history. Coin collectors are a very methodical, meticulous group of people. They will usually keep meticulous notes about their collections, stay abreast of rare coins that may become available and will also often take pride in showcasing their coin collections.
Some coin collectors will hold onto coins that are passed down from generation to generation, understanding that rare coins become more valuable with the passing of time. This is important to coin collectors and they understand the value associated with rare or historical coins, but it is not their primary motivation.
While coin collectors are similar in a number of ways, they are a wide and varied group. Different coins hold different value for different collectors. A Mexican Gold 5 Pesos coin might be of significant value to a collector. Another collector, on the other hand, may have no interest in the Mexican Gold 5 Pesos coin and instead values a 2018 1 ounce Canadian Gold Maple Leaf coin. Neither collector is right or wrong; it all depends on what is valuable to them and what they believe may be valuable to others.
Stackers
Those individuals who buy and hold quantities of precious metals for the primary purpose of investing are known as stackers. Similar to collectors, stackers may have some interest in the beauty, design and rarity of certain coins, but their primary objective is to buy precious metals in order to invest. Their interest is as a hedge against inflation or to one day sell their collection in order to receive compensation. The overlap between the two groups may include coins such as the American Gold Eagle coin, where it has numismatic value but can also be used as an investment. This, and other coins, can be purchased from Metals.com.
Coin collectors will often store their coins at home or in a safe deposit box at their local bank. Stackers, while sometimes storing their collections at home, will often use the services of a storage company that specializes in valuables like precious metals — especially if the volume is significant. The storage company — either via their own means or through partnership with a precious metals dealer, may also buy and sell the bullion on behalf of the investor.
Stackers may sometimes become collectors and vice versa. Stackers, after accumulating certain coins, might discover additional numismatic value in the coins they have in their possession. In turn, they could begin accumulating coins for this added reason.
While both collectors and stackers exhibit some differences in relation to their objectives, storage habits and ideas about what is valuable, neither group is better than the other. In fact, these groups have more in common than not.
The Metals.com Staff
