by A J Grape

Created on: July 30, 2008   Last Updated: November 25, 2008

Collecting coins for your children can be a unique way to invest in their lives. It can also be a very profitable endeavor, with less risk than buying stocks, while make a life-long impact on their future. As you release these coins into their possession, they may create a spark of interest in the hobby which can grow into a mutual passion. Here are some tips for getting started collecting coins for your children.

Collecting the basic Proof Sets

Mint Proof Sets are popular coins to collect. These are inexpensive sets to pick up each year as they are minted. You can first purchase the set dated the same year your child was born and build your child's collection on each birthday thereafter. Buying just one new set each year will build quite a collection as your child grows. The basic Proof Set will include that year's Dollar, Half Dollar, Quarter, Dime, Nickel and Penny.

For about fifteen dollars, you can get a full proof set of each year's six coins minted from each of the three major national coin mints including (P)-Philadelphia, (D)-Denver and (S)-San Francisco. That's eighteen proof coins to add your child's collection each year. This is a great way to build a major coin collection without breaking the bank in the process. The only downside to collecting these sets is that the return can be more sentimental than monetary. They will hold their value, but will not multiply in value for many, many years.

Collecting Graded Proof Singles and Sets

If you want to go after stronger investments, professionally graded singles and sets are going to bring more substantial returns over time. A professionally graded proof coin will be much more expensive than an un-graded coin, but in the long run, they are a better investment. Observing a quadruple increase in value is not unusual for graded proof coins in a few short years.

The most reliable professional grading companies today are PCGS-Professional Coin Grading Service and NGC-Numismatic Guaranty Corporation. Any coin graded by these two companies will be respected and honored by coin dealers and collectors throughout the hobby and industry. Buying coins graded by either of these two companies is like putting money in the bank

Collecting Precious Metal Sets

Every year the government releases special limited edition proof sets, which are minted in precious metals. These are produced specifically in the interest of hard core coin collectors and enthusiasts. The State Quarter program is an excellent example of this. For each

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