Collecting coins can be a fun way to invest your money if you avoid some of the mistakes inexperienced collectors make in the beginning. Remember, your best friend is knowledge. Read more books on the topic of collecting, chat on numismatic forums with more experienced collectors. Take your time and try to just enjoy your passion.
1. Be careful with online shopping
Of course, not all online sellers will try to cheat you. But given the high advertising and marketing costs, be prepared for the overpriced coins you purchase. Especially if these coins are certified (for example, they have an international certificate PCGS, NGC), this only guarantees you its authenticity, but not an adequate market price.
2. Don't trust first-hand information
Just like with stocks and bonds, you will meet people who know best what coins will be worth tomorrow, next month, or the next decade. But if it was possible to predict the future with such ease, it is unlikely that they would have shared such valuable information with you. This is especially true for people who have "accidentally overlooked" these particular coins. Only listen to advice from trusted sources: a seller or collector you have known for a long time.
3. The certificate is not a panacea
On the market of collectible coins, a popular service is to assess their condition and authenticity (grading), with further packaging of coins in special "weak" (transparent sealed containers inside which the coin is stored) and issuing a corresponding certificate, the number of which must be entered into the database. In the international market, the most famous organizations providing this service are: PCGS, NGC, ANACS and ICG. These companies have established themselves in the market for providing these services for many years. In Russia, recently, this is a privilege of the NNR (National Numismatic Register).
However, there are coins on the market that are either counterfeit weak or counterfeit and low grade coins in real weak. More often than not, just low-quality coins with an overestimated estimate of their condition, marked as MS-70 (as experts designate the most valuable specimens on a special Sheldon scale).
4. Buying coins in bulk lots
There is nothing wrong with buying coins in wholesale lots (by weight). And this is a good start to start a new collection. Unfortunately, you won't be able to check individual coins before purchasing. Most often, such lots include coins that do not meet the required quality standards. Therefore, it is unlikely that you will come across a rare specimen in such lots.
5. Buying foreign coins of small countries
Every even the smallest country issues its own coins. Such coins are considered rare because they are issued in a limited edition, which does not mean an increase in demand and prices for them over time. Better pay attention to the countries that issue commemorative coins: for example, Liberia, Isle of Man, Marshall Islands, Guinea. Also, avoid multi-colored coins and those coated with a thin layer of precious metal (silver, gold, or platinum). Such coins are not popular either with investors or with numismatists.
6. Explore more
Buy a book before buying coins. People who made more money from their hobby were, first of all, collectors. Your main goal is to collect a solid and high-quality collection of coins, and not try to get rich as soon as possible. Such an investment is always long-term. To make your financial investments reasonable, study the necessary material on the topic more. In the world of numismatics, there are no universal get-rich-quick formulas. Expect your acquisitions to pay off in the future.
7. Distinguish experts from regular salespeople
Coins can be bought everywhere: by mail, via the Internet, through advertisements. More often than not, sellers will advise you on which coins to invest in right now. And, oddly enough, just such coins can be bought from them, and even at the lowest price. These are ordinary sellers. You will not find cheap coins from experts, but you will be sure that the price, firstly, is fair, and secondly, you will receive an expert opinion from a professional numismatist.
8. Buying coins from the bag
These are coins that the mint packs in bags (in the USA and Europe, packing in "rolls" is accepted). In such bags, money is stored that has not entered circulation, for which they are appreciated by collectors.
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