What Kind Of Coin Collector Are You?

Casual coin collecting

The most ordinary type of coin collector is the casual collector. Casual collectors are both kids and adults. They collect random coins because they like the fun of it. The casual coin collector does not spend as much money on buying and preserving coins as a more advanced coin collector. Casual coin collectors usually have interest in coins with a special meaning to them, like for instance a coin minted in their year of their birth. Casual collectors often get hold of more interesting pieces as gifts from friends or family members. The gift of a rare coin has transformed many casual collectors to curious collectors instead.

Curious coin collecting

When a collector goes further than just circulation finds and getting gifts. He develops more of an interest in coins and becomes more a curious collector. The curious collector will buy some inexpensive coins, maybe look around coin shops or look at coins on eBay or other related internet sites. That way a survey of potentially interesting areas of coin collecting is made, and as the curious coin collector interacts with more seasoned collectors, he is bit by bit learning the trade of buying or selling coins. Like for instance studying coin books before making any serious decisions about buying expensive coins. At a point most curious collectors learn enough to become an advanced coin collector.

Advanced coin collecting

Every advanced coin collector is a unique coin collector. Some are dedicated generalists looking for a few examples of all kinds of coins. If they do have enough resources, this can result in an astounding collection, as that of King Farouk of Egypt, who collected everything he could get his hands on.

Many coin collectors are completists who want an example of everything within a certain set. For instance Louis Eliasberg was the only coin collector thus far to assemble a complete set of known coins of the United States. Other coin collectors focus on coins of a certain nation or historic period. And some collect coins from various nations or settle on error coins or exonumia like tokens and medals. As you can see, it can vary a lot.

At the highest levels of coin collecting, it is a highly competitive sport. It can lead to astronomical prices as enthusiastic collectors struggle for the very best examples of each date and mint mark combination.

Historical coin collecting

Coin collectors of ancient and medieval coins are more interested in historical significance than other coin collectors. The coins of Byzantine, Roman, Indian, Greek, Celtic, Merovingian, Parthian, Ostrogothic and ancient Israelite origin are among the most popular ancient coins collected. Specialties tend to vary a lot, but the common approach is collecting coins minted during a particular emperor’s time in power. A completist would for example strive for a representative coin from each emperor.

National coin collecting

Usually coin collectors of national coins specialize in the coins of their own country. A common way to collect national coins includes collecting one of every date and mint mark for a particular series. This is termed collecting by type. For instance a date set in Britain may include one Queen Victoria large penny for each year, 1837–1901. In another example a U.S. type set might include an example of each variety of each denomination produced. Most coin collectors of national coins create unique combinations of date, mint mark and type sets.

Error coin collecting

Collecting error coins is a modern development made doable through the automation of coin manufacturing processes. Coin collectors of ancient and medieval coins; accept coins with errors because manual coin manufacturing processes lend unique features to each coin struck.

Examples of coin errors could be repunched mint marks, doubled dies, double strikes, overdates, off metal coins, clipped coins, displaced or off center coins, and different denominations on two sides of one coin.

World coin collecting

World coins are collections of relatively recent modern coins from nations around the world. Geography is often the engine for this type of collector; he can travel around the world through his coin collection. Many collect by subject, for instance collecting coins from around the world featuring animals.

World coins are usually inexpensive and may be a good starting point for children. Most children find foreign coins by looking under change-to-cash machines, where customers throw away assorted coins found in their penny jars. It is possible to find coins from all over the world, ranging from Canada, to South Africa, to Korea.

Rare And Beautiful World Coins

Ideas for Collecting Coins from Around the World

Collecting world coins is a fun hobby that gives you the feeling of travelling the globe vicariously through your coins. A collection of world coins offers a unique insight into the culture and history of other countries, and encourages you to learn at least a few words of a variety of different languages. World coins can also be an interesting step into the world of coin collecting, because it is a relatively inexpensive pastime. Many of the coins are still in circulation, making them easy to find and light on the pocketbook to buy. Oftentimes, children start their coin collections with world coins for this reason.

Ideas for Collections of World Coins

While some people may enjoy collecting world coins haphazardly, simply enjoying whatever coins they happen to come across, others prefer more of a challenge. While it may be impossible to collect every coin from around the world, you can create a lovely coin collection that is challenging and fun to complete by selecting a particular theme to pursue.

The most obvious theme for a collection of world coins is a concentration on a specific country. If that idea seems a little bit stale, you can also broaden your collection by concentrating on a region or aspect of a country. For example, you could start a world coins collection from South American countries, nations where English is a national language, or from island nations.

Another interesting possibility is to combine two interests by concentrating on a favorite thing or hobby outside of coin collecting. For example, a coffee lover might collect world coins from countries that produce coffee beans, or an auto enthusiast might collect coins from countries that produce his or her favorite automobiles.

You don’t have to use countries as a central point of your world coins collection, however; you can also build a collection around a specific motif on the coins themselves. Some people have collections of coins featuring a particular animal, such as an eagle or a panda bear. Others concentrate on flowers, trees, or birds. Someone interested in military history might enjoy a world coins collection featuring famous fighters, for example.

Another idea for starting a collection of world coins is to concentrate your efforts on coins from a particular year. Some people really enjoy collecting world coins that were minted in their birth year, or which commemorate another date that is important to them.

If none of those ideas appeal to you, perhaps you’d like to concentrate on a specific metal used to make the world coins. While precious metals like gold and platinum are obvious choices, some people enjoy putting together collections of world coins minted from common nickel or copper.

If any of these ideas have inspired you to start a collection of world coins, you might want to pause a moment before you start building a collection, and check out the prices and availability of coins matching your desired theme. It won’t be much fun to start a collection of gold bullion coins, only to realize that you can’t afford more than one or two pieces. A few minutes with a world coins catalog will help you decide if your ideal theme for a collection is also feasible with your budget.

Start Your Own Coin Collection

Coin collections can be prized possessions that can be handed down from generation to generation. There are even coin collections today that can fetch a prize up to hundreds and thousands of dollars. Coin collecting, more importantly, can be a very engaging hobby to follow. Anyone can enjoy collecting things as a hobby. So why not collect something that can appreciate in price as time goes by? That is just one thing that a coin collection can reward its collector. Such a collection can increase in value in time.

People may not be aware of it, but most may have a start of their own coin collection. It is a wonderful hobby worth taking. Coins should not be that hard to collect since there are plenty to go around with. But that is depending on what kind of coins you wish to collect. Regardless of that, a coin collection can be a breeze to start. You might begin with what is easier to obtain in your area. You can collect your own set of good luck coins. Maybe you can add in to that collection a silver dollar, an old Indian token, or a souvenir token. As you keep on collecting, you might find out sometime later that you already have a coin collection before you.

Coin collecting can be a fascinating hobby because each coin reflects stories from the past through its marks. From royalty, great leaders to power and patriotism, each coin provides a history of the place where it was issued. Famous figures from history are forever depicted in each coin so you have an accurate portrayal of how such famous people look like during their own time.

Deciding on what coins to collect will usually depend on the collector. There are no stated rules on what coins you can collect. But there are different methods that you can use to help you in your coin collecting. One method you can use is by collecting a series or a complete set of the coins in a series such as collecting a series of coins issued at a specific date in time. You can also use the shotgun method where you collect coins that have special interest to you. You might also be able to specialize in collecting coins of unusual shapes such as those found on other countries. This might prove to be a more challenging task but it can also be more rewarding for you as you continue on adding to your collection.

There are many ways available for you to be able to start your own coin collection. There are many places where you maybe able to look for coins to start off your own collection. First off, you can check your own pocket for coins that you might have otherwise discarded. You might have traveled to other countries and they might have a lot of interesting coins worth collecting. You can also check out coin shops in your neighborhood for more valuable coins that you may want to add into your own collection. But be prepared to dish out some cash for some coins that you might want to acquire.

Coin shows also offer you another venue where you may be able to check out a wide selection of coins from dealers from all over. You might also be able to meet up with other coin collectors and build many friendships along the way. You can also ask the help from your friends and family for a coin or two that they might have. Even flea markets provide you with a great place to look for valuable coins at a bargain price. But you might need a good eye to look for such coins.

What is the Difference Between a Coin’s Price and its Value?

Price and Value are Not the Same Thing

There is a big difference between the price of a coin, and the value of a coin. Although you often see these words used interchangeably, it is important that you understand the different concepts represented by each.

The “Price” of a Coin is How Much it Would Cost You to Buy it From a Dealer

This is pretty straightforward. The “price” of a coin is merely the amount that it would sell for on the open market, otherwise known as its “retail price.” Coin prices are set by many different factors, including the type and grade of the coin, its rarity and desirability, and to some extent its availability in the marketplace. The most frequently used price guide to U.S. coins is the Red Book.

The “Value” of a Coin is How Much You Can Sell it for Today

Here’s where it gets a little complicated.

When you want to establish what your coin collection is worth today if you wanted to sell it, you are establishing its value. The amount you can sell your coins for (its “value”) is considerably less than its “price” if you had to replace them. Dealers need to make a profit to stay in business, so when you go to sell your collection, you’re not going to get those nice, high Red Book prices. The Red Book prices are retail amounts.

Consider the Blue Book

There is another book, known as the Blue Book, (formally titled “Handbook of United States Coins”), which is the most widely used guide to wholesale coin values. These are the values a coin dealer will offer to pay you for your collection. They typically run about half of what the coins retail for. Coins which derive most of their value from bullion (such as common-date American Eagles and Double Eagles) will get you more (75% to 85% or so) because most of their value is based on the gold itself, rather than the rarity of the coin.

Appraising Your Collection for Insurance Purposes

The one time when it is correct to use the “Price” metric to determine what your collection is worth, is when you are establishing its value for insurance purposes. In this case, you want to insure the replacement cost of your coins. Since you’d have to pay the Red Book (retail) price to replace them, this is the metric you should use.

Always be Realistic About Prices and Values

There is nothing more satisfying to a collector than to pluck a coin worth $100 in the Red Book out a dealer’s $10 pick bin. And in this case, you’ve probably done very well, because it’s likely the dealer overlooked something here. But the more typical case is finding lots of $20 Red Book priced coins the $10 bin. This is because the dealer is probably overstocked in this material, and would be happy to get his cash back to make more marketable purchases. Be careful that you don’t get carried away thinking you’re getting bargains in cases like this, because the amount you can sell the coin for, its value to you, is about what you paid for it. In other words, don’t deceive yourself into thinking that the value of a given coin is equivalent to the price you paid for it.

How Coin Collecting Began

A Brief History of Coins and Coin Collecting

Very few things tell more about a country in fewer words than the coins it produces. Coins hold a wealth of information on their small faces, from the year of their birth to the language spoken at the time, from the metals a country holds valuable to the cultural influences and historical figures that its people hold valuable. Coins can also be strikingly beautiful in their own right, with the top designers of a nation striving to have their motif chosen for immortality on the face of a coin. With so much information and beauty contained in so small a package, it is no surprise that coin collecting has been a hobby nearly as long as the concept of coins themselves. An understanding of the long history of coin collecting, once known as “the hobby of kings,” will make this pastime even more enjoyable.

The Origin of Coins and Coin Collecting

The hobby of coin collecting began nearly as soon as the first coins were minted in Asia Minor, around 650 B.C. Before that time, gold and silver ingots were the most common form of legal tender. Because there was no standard, however, each trade necessitated a careful weighing and examination of the precious metals being offered, and it was easy for unscrupulous merchants to pass off a lesser quality of gold in trade. Coins, which were printed on standardized weights of precious metals and stamped with a government guarantee of value, was the answer to this unwieldy, easily sabotaged trading process. Within one hundred years, the concept of coins had been adopted by all of the major trading cities in the civilized world.

At the beginning, coin collecting had a very practical reason – there were no banks in which to store money. People hoarded coins as a way of safeguarding their wealth. Those coins that were especially beautiful were hoarded the longest, often being passed down within families.

Coin Collection in Renaissance Times

Modern coin collecting, where the coins are viewed as a work of art as well as a collection of valuable legal tender, is widely thought to have begun with Francesco Petrarca, or Petrarch, who is often called the father of the Renaissance. Although there is reason to believe that Roman emperors and citizens paid prices higher than face value for coins that were no longer in circulation, Petrarch was known to be an avid collector, and often spoke of his collection in his writing. During the Renaissance, popes and nobility began collecting coins for their artistic and historical value, and the name “the hobby of kings” was born. So popular was the pursuit and trade of ancient Greek and Roman coins in this time period, that a brisk business in high-quality counterfeits sprang into being. Today, these counterfeits even have a high value, due to their age, quality, and historical significance.

Coin Collecting in Modern Times

Coin collecting has been a favorite pastime of many people with a reverence for history, including U.S. Presidents Thomas Jefferson and John Adams. The development of two large coin organizations in the mid-to-late 1800s, the American Numismatic Society (ANS) and the American Numismatic Association (ANA), helped spark American interest in building and maintaining a coin collection. Today, there has been an explosion in American interest in coin collecting, in large part due to the ease and availability of obtaining interesting coins. The U.S. Mint has successfully increased interest in starting a coin collection through the minting of specialty coins, such as the bicentennial half dollars released in 1976 and the current release of quarters commemorating each of the fifty states.

How Do I Sell My Coin Collection?

So, you feel it is time to sell your coin long-time collection, or you have inherited a collection and you know nothing about coins and you want to sell them. As with the sale of anything, you want to make sure you get a fair price. Sounds simple enough, right? In the area of numismatics, when it comes time to sell, offers for your collection can vary greatly. The following tips will help guide you to getting a fair and reasonable offer. I will talk more on the term “reasonable” a little bit later. Coin Dealers, like any other profession, number in the thousands. From part-time single person businesses to huge companies that buy and sell millions of dollars of coins annually. And like other professions and industries, we have a few crooks. By following the general tips in this article, you should be in a better position to realize your collections value. So here we go!

First and foremost, you need to know what you have. Why? If you do not know what you have, how do you know you are getting fair value? If you have thousands and thousands of wheat cents, I am not saying you need to inventory them all. In fact, it may not be worth your time. The chances of finding a key coin are slim at best. But you should know how many pennies you have. How? Simply weigh them. Wheat pennies come to about 148 pennies per pound. The same rule can apply to other common coins such as pre 1965 Roosevelt Dimes and Washington quarters as you may just a bullion price on these. For the rest of your collection, you may want to count the number of each piece. Make sure you have a complete list of your collection.

OK, time to contact a dealer? No, not yet. How do you know you are getting an honest one? Before contacting a dealer, you need to do some homework. Does the dealer belong to any organizations and clubs such as ANA or BBB? How long has s/he been in business? What is their reputation? Check out a couple of dealers before you make that call. Also, just because they advertise in a major coin collecting publication, does not make them honest. I know of one dealer who advertises in a major publication and sells cleaned coins as BU/Unc originals. Most novice collectors would not know the difference.

Now that you have done some research, it is time to contact the dealer. This can be done in many ways. You can give them a call or if you are the shy type, just send them an email. In your email, identify yourself and that you have a collection for sale. Include in the email the inventory you completed. This may come as a shock to many, but some dealers will NOT want your collection. Many dealers specialize in certain types or series, or just may have too many coins in their inventory. If your collection is an average collection of common coins, you may be disappointed to learn that many, if not all of the big dealers simply do not want to bother with you. It is too time consuming to sort the common collections and the margins are too small. Do not fret, all is not lost. Many smaller dealers will welcome the chance to obtain your collection. Many of these dealers work in mail-order only and may have only email or a PO Box as contact information. While they may appear shady, these folks generally are quite reputable. As before, contact the dealer and ask if they are interested. If they are not, just move on to the next dealer. If they are, ask them for their “buy price” list. Many dealers will publish a list of what they are willing to pay for certain coins.

After some hard work, you have a couple offers on the table. The offers are not anywhere near what you expected. Remember what I said above about a “reasonable” offer? Here is the painful truth. Coin Dealers are in business to make money. Sure, many of us chose this profession because we love it, but like everybody else, we still have mortgages, car payments, and college for kids, etc. Many people will look in the latest Coin Prices magazine to come up with an idea of what there collection is worth. Magazines such as Coin Prices are really a list of prices of what you can expect to pay a dealer for a specific coin, not what you can expect to get paid. Markups can range from 20-50% or more for smaller denomination coins such as wheat cents. As I mentioned earlier, some dealers just may not want what you have. Also, many, if not all dealers, reserve the right to revise the offer on inspection of the collection. If you think all your Morgan Dollars are BU, but they are really AU, this would make a huge difference in price. Grading is highly subjective. Also, for larger, more diverse collections, a dealer may spend a considerable amount of time reviewing the collection to ensure a fair price.

So, what to do? Take the best offer and run? Maybe, maybe not. If this is an inheritance, and you have no emotional attachment, you can just sell and never look back. If this is your collection of 50 years, well this may be painful. You can continue to contact different dealers and wait for a better offer. If you feel your collection is really worth more, you can always consign it for auction. With some of the fees the major auction firms charge, it may not be worth it. You can also try your hand at eBay but unless you have a strong feedback profile, many buyers will not bid on your items. You can also locate eBay members who will auction off your collection for you for a percentage of the take. Sometimes this works out well and sometimes not.

For now, let’s assume you have a reasonable offer and you decide to sell. By the way, this should be a written offer sent via the mail or sent via email. Many times, the buyer may be located in another city/state. No buyer will send you a check until they have seen the collection. If the collection is large enough (many, many thousands of dollars), some buyers will come to you. If not, your very viable option is to send the collection to the buyer via mail. Yes, that is right, via the mail. Wait you say, that sounds risky. It can be, but if you take precautions, you will have no problems. First, package the collection up very well. Make sure there are NO LOOSE coins jingling around. The sound of jingling coins is music to a thief’s ear. So be sure to wrap them up well and tight. When sending via the mail, the USPS is fairly safe. Usually, you will want to use USPS Priority Mail. Contact your local post office as you can usually get free boxes. Generally, you will want to use the Flat Rate options as you can ship up to 70 pounds for under $10.00 (not including insurance), but ask your local postal clerk for options. For your protection, you MUST insure your package and pay for delivery conformation. Include in your package an itemized list. Most dealers will appreciate this as they will audit the shipment to the list. If all is well, you can expect a check in the mail in no time.

In summary, here are the tips

1. Know what you have, prepare a comprehensive inventory

2. Research some dealers before you contact one.

3. Talk to dealers before sending coins to gage interest

4. Send your coins. Package them well and insure them

5. Review the offer

6. Collect the cash!

As always, happy collecting!

Determining the Values of Your Coins

Factors that Influence the Value of Collectible Coins

If you are interested in collecting coins, it’s important to be able to have a rough idea of how much coins are worth. Knowing how coin values are determined will enable you to find good deals, and ensure that you don’t get cheated into paying too much money for a coin with a low worth.

Supply Influences Coin Values

One major factor in determining coin values is the law of supply and demand. If there are many coins of a particular type available, that coin will not be worth much. On the other hand, if only a very few coins of that type are produced, the coin values will rise. This is why a completely normal-looking copper penny minted in 1943 is worth about $200,000, whereas a 2,000 year old Roman coin may be worth less than $100 – because thousands upon thousands of Roman coins were minted, but only 40 pennies produced during war-time 1943 were made out of copper.

Demand’s Effect on Coin Values

Even among coins with a similar number of copies in existence, some have a higher worth than others. This is because some coins are in higher demand, driving up the coin values. Coins may become popular because they are particularly lovely to look at, because they are part of a topical set that is often chosen by collectors, or because they have a certain historical significance.

Precious Metals and Coin Values

Some coins are made out of precious materials like gold bullion or platinum. These coin values are less volatile because the worth is guaranteed in part by the material. A gold bullion coin, for example, is usually worth more than its melted weight, but it is never going to be worth less.

Coin Values are Tempered by Grade or Classification

The final major factor in determining coin values is the grade or classification of the coin. The more wear and tear that a coin has undergone, the less value it is going to have. This is why uncirculated coins are usually more valuable than coins that have been passed from hand to hand. Uncirculated coins have always been kept in the very best of conditions, making their value much higher. A coin in flawless condition may be worth hundreds of times more than a low-grade version of the exact same coin.

Now that you understand the basic factors that influence coin values, you have a better grasp of which coins may have real value and which will be worthless. In order to get a ballpark estimate of the value of any coins you might have, you will first need to determine its grade or classification. You can do this by comparing your coin’s condition to a published list of guidelines. Then look up the value of a coin in that condition in a book such as “The Standard Catalog of World Coins,” which should be available in most public libraries. If you need to know the exact amount that your coin is worth, you should take it to a coin dealer and let him or her evaluate it for you.

Coin Values – How Much Is Your Coin Worth?

One of the most enjoyable parts of coin collecting is learning about coin values. After all, as enjoyable as coin collecting is on its own, seeing the investment potential of a coin collection is also enjoyable. Besides, when you can see your coins increase in value, it makes your hobby feel functional. And, when you can see how many coins your current coins are worth, it is a self-expanding hobby. However, to enjoy this aspect of coin collecting, you are going to need a way to look up coin values.

One of the best places to go for coin values is to a coin dealer. These people are experts in their field and they are likely to stay abreast of prices, auctions, information and news related to coin collecting. And, because they are probably coin collectors themselves, you can sit down with them and discuss coins and how you can improve your collection. And, because dealers buy and sell coins, they can help you sell your coins if and when you want to sell portions of your collection; by either buying the coins directly or connecting you to other buyers they are familiar with.

Another method for determining coin values is through coin blue books. There are several books out there that contain complete lists of almost every coin ever struck and their current values. These books come out every year and they list the market value of coins by year, minting location and condition, as well as any other pertinent information that may affect market value. However, their information is fixed once they are published and, in some cases, the information is already out of date by the time the book hits the stands. But they will, at the very least, give a good idea of how much your coins are worth.

The Internet is also a very good source of information, thanks to several sites that offer lists of coin values. Many of the sites are very up-to-date and stay close to new developments, though it depends on the particular site. Unfortunately, since many things on the Internet are not always reliable, it is best to check a few sites in order to ensure that the information is correct. By looking at a few different sites, you can get averages of several sources and avoid getting bad information from one site that is neglecting to update.

Of course, coin values are not just arbitrary numbers. In fact, the value of a coin is actually the amount that someone would expect to receive upon selling a coin. Which means that it is, essentially, how much someone should be willing to pay for a given coin. So, if you want to figure out what a coin is worth, you should see what people are paying for it. With all the auction sites and coin sale sites out there, you can find the information you need just by researching what other people are asking or paying for a particular coin.

Finding coin values takes a little effort and diligence, but it is certainly worthwhile. It allows you to find out what your collection has been doing for you and it lets you determine how well you have chosen the coins that have gone into your collection. And that has a lot to do with the fact that coin values also determine how many other people want exactly what you have sitting in front of you.

Coin Collecting Opens The Door To The Past

Coin collecting or numismatics is probably one of the most popular hobbies in the world and also one of the oldest. Many individuals at some point in time have collected coins. If you want to start a coin collection, a lot of research and study should be devoted to the hobby of coin collecting.

Coins have often been regarded as ‘mirrors of history’. Other than the monetary value and worth of antique coins, they also possess historical value. Coins belonging to different ages have different stories to tell of empires and emperors.

Amateur coin collectors generally start their coin collection by collecting coins that belong to their own country, as this is the easiest and the most cost effective way to start a coin collection. With time this may give way to specializing in collecting coins that belong to a particular type. Coin collectors may specialize in coins of a particular country or of a particular period or metal. Commemorative coins, such as those released during sporting events or those that mark the independence day of a country, can also make an appealing collection. Coins with faults or defects are also popular among serious collectors.

As with any other hobby, the coin collection market is flooded with fakes and if you are not an expert in this field it is very difficult to separate the original genuine coins from the counterfeit coins. Before buying expensive coins it is a good idea to get the coin authenticated by reputable coin grading and coin authentication services. The condition of a coin is denoted by a coin grade. For a detailed study on coin grades, read Photograde by James Ruddy. Currently, the more reputable coin grading services are Professional Coin Grading Service, Numismatic Guarantee Corporation of America, ANACS and Independent Coin Grading Co.

The best places to buy coins are reputable coin dealers, auctions, coin shows or from other collectors, though you should avoid buying from the internet as it is hard to judge online whether the coin you are interested in is genuine or counterfeit. Coins may be stored in coin cases, coin trays and coin albums. However, you should avoid storing coins in jars, as keeping them in a jar may scratch the coins.

Amateur coin collectors may mistakenly think that cleaning coins is an important part of caring for the coin collection. However, the opposite is true; it is best that coins are not cleaned at all. Collectors prefer the original look of coins and cleaning coins may bring down their value. If your coins need any cleaning, you should first consult a professional or an expert. Olive oil or soapy water may be used for cleaning coins. Harsh cloths should never be used to clean, and tap water is a strict no-no as they contain minerals that may harm the coins.

All Coin Dealers Are Not Created Equal

How to Select a Coin Dealer for Your Coin Collection

Why do I Need a Coin Dealer?

It is very difficult to build a collection of rare coins without a connection to a good coin dealer. If you are an investor hoping to make a profit with your collection of rare coins, building relationships with good coin dealers is vital to your success. If you are interested in making the highest profits possible with your coin collection, you will need to find a merchant partner who is experienced in the specific rare coins that interest you, and who will sell them to you at a good price. Most coin dealers will charge a lower premium on the sale of coins to their best customers. After all, it makes good business sense to get the most profit possible from a person who will do business with you only once. If you have a long-term relationship, however, the margin does not need to be as high for the coin dealer to make a good profit.

Because coin dealers are experts in their chosen fields, they will also have better connections than individuals who buy coins on their own will. Finding the right vendor or wholesaler can be a long and difficult task for someone new to the coin collecting trade. Coin dealers will also be more likely to recognize a counterfeit coin, have a higher chance of hearing about the sale of the specific rare coins that interest you, and will recognize an asking price that is over- or undervalued. As an investor, these are all critically important points for your success.

Building a long-term relationship with a knowledgeable coin dealer is the best way to protect the money that you invest into rare coins. All too often, new coin collectors who try to go it on their own without professional help end up being scammed out of hundreds or thousands of dollars.

What Do I Look For in a Coin Dealer?

All coin dealers are not created equal, and it is nearly impossible to specialize in every area when it comes to collecting rare coins. Therefore, it’s important to know what to look for before you select a professional for your coin collecting needs.

The first vital piece of information that you’ll need when considering coin dealers is his or her professional qualifications. Some important questions to ask include, does the coin dealer belong to any professional groups? How long has he or she been in business? Can the coin merchant provide references from other satisfied customers? One of the best indications that a vendor has a high level of professionalism is a membership in the Professional Numismatists Guild (PNG). This group includes the most reputable coin dealers in the business thanks to an emphasis on ethics.

The second most important question to put to a prospective coin dealer is the area in which he or she specializes. There are so many different kinds of rare coins to collect, ranging from gold bullion coins to ancient Roman coins, that it is impossible to be a true expert in all of them. You’ll want to find a merchant that specializes in the particular area that is of interest to you. A trader might be able to recognize every rare American coin at a glance, but that won’t do you a lot of good if you really want to collect legal tender from medieval times.

Finally, you should consider the motivation of the coin dealers you are considering. A highly motivated coin merchant will go to shows and retailer auctions, keep abreast of current prices and trends, and will generally keep up-to-date with the current coin market. Any investor will recognize the impact of current information on profit levels. A coin trader who is highly motivated will also be more likely to provide you with excellent service and the best rare coins.

Once you have selected a coin dealer, it is important to reward him or her with your loyalty. You are likely to get the best prices and service from coin dealers who know that you are working exclusively with them.