| The thought of investing in rare coins is alluring. | | | | agree with another. Similar to visiting a doctor |
| When we first start coin collecting, we often | | | | about a significant medical procedure and getting |
| dream about finding that "one" rare coin to add to | | | | several opinions about the diagnosis, getting a 2nd |
| our collection. Dreams of discovering a gold | | | | opinion as to the grade of the coin is prudent. |
| doubloon that washed ashore while strolling along | | | | 4. Use an independent grading service. Rare coins |
| a white sand beach. Rare coin collecting in reality is | | | | derive their value primarily from their rarity ad |
| much different than our dreams and requires | | | | grade. With the value reliant so heavily on the |
| careful research and analysis. | | | | grade it is important they are graded correctly. |
| If you are considering investing in rare coins, you | | | | Even among legitimate coin dealers the grading |
| need to take steps to protect yourself and your | | | | assessment can differ and this can be very costly |
| investment. The best way to do this is to study | | | | to you. |
| the many areas of coins, including; rarity, grading, | | | | 5. As with research for any significant purchase it |
| and price trends...your success will depend upon it. | | | | is wise to comparison shop. I doubt you would |
| Here are some things to consider before buying: | | | | spend $50,000 on a new car without comparing |
| 1. Spend as much time researching the reputation | | | | prices from several dealerships, the same is true |
| of the coin dealer as you do the coins. Do not | | | | of rare coin collecting. Look at the major coin |
| just rely on what the deal or his/her | | | | publications, auctions, and other dealers for prices |
| representatives tell you, but find other collectors | | | | for similar coins. It is likely that you will find some |
| that have used the dealer, check references, and | | | | differences in state coin prices, and you will need |
| contact any organizations they claim membership. | | | | to determine the reasons for these discrepancies. |
| If you can find solid references and they check | | | | Rare coin collecting is a fun, exciting addition to |
| out, then great, otherwise look for another dealer. | | | | the hobby of coin collecting. However, investing in |
| 2. A common sales tactic used by coin dealers is | | | | rare coins is serious business and needs to be |
| to promise to buy back your coins at or above | | | | viewed in this light. Making the change from |
| what you paid for them. Let me ask you this, | | | | hobbyist to investor is a big step and requires |
| what would happen if you purchased a gold coin | | | | careful consideration as to your motives and |
| when gold was at $600 oz and wanted to sell | | | | capabilities to enter into this marketplace. Begin |
| when gold was at $300 oz? Do you think the | | | | with this list of rare coin collecting tips, and then |
| dealer would actually buy it back at a loss of $300 | | | | take the time necessary to study all of the |
| oz? If it sounds too good to be true, it probably | | | | aspects of investing in rare coins. Many successful |
| is! | | | | investors spend months and months analyzing |
| 3. Elements of the Grading process are | | | | specific coins before they make even a single |
| subjective, and the opinion of one dealer may not | | | | purchase. |