Whether you buy coins for hobbie or for an ivestment, get started off in the right direction.
Looking for that elusive hobbie or investment, Become a Numismatic, its a whole different world of collecting.
Follow my tips on how to build that coin collection you have always wanted.
Collecting coins can be an exciting hobbie or an exciting investment, start your coin collection off in the right direction.
Before you start your coin collection,
Ask yourself if you want to collect coins for profit or pleasure, if profit you must do what any investor does:
1/ Research the item you think will rise in price & find out the availability and value.
2/ Ask yourself can I afford to buy the coin & hang onto it for a reasonable amount of time to see it rise in value before I sell to another coin collector.
3/ How will I find a buyer to sell to make my profit?
4/ Am I going to buy high quality or lower grade coins?
5/ Is the coin in demand, is it too early or late to sell?
6/ Is the profit from the coin more than I would get from other investments, that are easier to sell?
7/ If you have only a little knowledge of coins ask a dealer or fellow coin investor for what is a safe steady investment, the answer is always the same, get to know about the item you are about to buy, the profit comes from knowing a good investment from a common one readily available to everyone.
8/ Attend coin auctions in your capital Cities (check newspapers), see what is on offer before bidding.
Status coin auctions are well known and have catalogues online giving realistic prices, also past auction results, so you can see what is on offer or search online at ebay or Amazon & other online stores.
Remember there are no easy ways of making money it is in the research, budget & some hard work along the way.
All coin collectors need a set of high-magnification hand lenses this is an invaluable tool for coin collectors. This is to get up close to see any imperfections such as toning (colour change), rim knocks (marks or dents on the round of the coin), wear contact marks (loss of detail).
A bunch of up todate reference coin books to check current prices & types of coins.
A set of coin scales to weigh the coin or coins.
A pair of cotton gloves for handling uncirculated coins (coins never been in use)
A coin album with untouched plastic sleeves.
A bundle of coin pouches for individual coins not in set.
A well lit room.
If your collection becomes rare & worth alot of money, buy a safe or get a safe deposit box at your local bank.
Owners Insurance for your collection.
Here is a basic guide for grading a coin.
1/ Check the coins high points for wear, common signs of wear are indicated by the color of the high points. On coins made of copper, the high points after wear are dark brown. On coins made of nickel, the high- point color after wear is dark gray. On coins made of silver, the color is dull gray, on coins made of gold the high-point color after wear is dull.
2/ If it looks bad dont buy it, Use your gut feeling. Blotchy colouring, obvious scratches and spots which penetrate the surface of a coin are disturbing to the eye, if the coin appears like this to you, it will probably appear that way to other people, too. Therefore, you should leave it well alone.
3/ Look beneath the toning, this is probably the most important point of all. This is the easiest way to determine whether a coin has artificial toning.Toning can cover up a multitude of wear marks & scratches, chemical cosmetics etc. Many times, coins with imperfections are artificially retoned to conceal flaws. By using your magnifying glasses we can detect even more of these imperfections.
4/ A very important thing to remember is to have good lighting when grading a coin, poor light can hamper your decision on a coin or give it a false grading, this can cost you money in the long run or spoil a great collection.
5/ Check for hailine fractures on the coin, these very much influence the grade of the coin. If in doubt take it to an expert in the field of grading coins.
6/ There are a multitude of books, online ebooks, coin forums & coin clubs to seek out if you are unsure of what you are doing. A coin collection is a long process, dont rush what could be a great love affair or investment.
Coin research can be very daunting to the beginner, at first try to pick 1 or 2 coins to focus on buying & learn as much as you can about these coins, I call these niche coins. Maybe you have found an old penny in your garage junk or your house hold coin tin, look it up in a coin guide or online & if it has some value add to your collection with other pennies from the same era or pennies with rare dates.
You never know before long you may have an extensive range of pennies worth some value or just priceless to you, remember the coins must be in good condition & this is where your coin guides come in very handy.
Some collectors only buy, lets say florins from Australia, pennies from the United Kingdom, Spanish pillar dollars, Eventually you will probably have a collection of about 20 different niche coins, maybe from all different countries or from just the one country or region its up to you on how big you want your collection to be.