Coin Collecting and Investing Tactics for Future Profits

While coin collecting is a fun and enjoyable hobbycoins. In most cases the dealer had to pay top
for most of us, there is no reason it can't be aprice himself and is unwilling or unable to discount
profitable endeavor also with a well thought outthe coin.
plan. If you are just starting your collection orMajor coin shows are a good place to find a wide
advancing to the serious money stage letsvariety of the coins that you are looking for
consider these facts before taking the plunge.under one roof with knowledgeable dealers from
The key dates and semi-keys of any series haveall over the country. Internet auctions are risky at
out preformed the common dates in all grades inbest, especially when buying raw coins. Be very
the past and there is no fundamental reason forcautious because a lot of the sellers don't know
that to change in the future. The market forhow to grade coins, much less know if the coin is
these scarce low mintage coins is driven bya fake. They state in their write up description of
supply and demand and new collectors comingthe coin something to the effect, "We are not
into the market should keep the demand strongcoin graders you grade using the pictures or the
and healthy. On the other side of the coin, no punscans we have provided." The sad part is the
intended. If you are going to spend money buyingCompanies running these auctions make big bucks
coins for your collection, why not buy key andfrom the listing fees, final value fees etc., yet
semi-keys with more potential value appreciationthey take no responsibility for what is being sold
in the future? The investment theory here is thatto the buyer and they don't do anything to stop
the coins will have to be held for a period of time,the sellers from selling coins under these
maybe years before a profit can be realized.circumstances. Avoid this type of auction
Should one buy slabbed or raw coins? Keep incompletely.
mind there are fake coins on the market,Learn to grade the coins that you are interested
especially expensive key date coins. Set a limitin before you buy the coins! The ANA (American
that you are willing to pay for a raw coin andNumismatic Association) publishes a good book on
don't go over it. When buying coins graded by onecoin grading called ANA Grading Standards. Buy
of the major grading services, ANACS, ICG, NGCthe book. Many books and articles have been
and PCGS you can pretty much be assured thewritten by experts on coin grading and are
coin is genuine and the assigned grade is close toavailable for specific coin series. Remember coin
correct. Don't buy coins graded by inferior or lessgrading is not an exact science it is a subjective
known grading services. Note: I have seen slabbedmatter that is why it is important that you
coins that have changed in color and toning frombecome a knowledgeable grader yourself.
when they were originally graded due to improperAny type of investing carries risk and the rare
storage over time.coin market is no different than other markets in
Buy from a well established dealer so that youthat respect. The coin market can be and is very
can return the coin in the event that you are notvolatile at times. You could loose your money or
happy with your purchase. Expect to pay close tonot make any money at all. You should never
the current book value for problem freeinvest more money than you can afford to loose.
key-dates and semi-keys. If the asking priceNo one can look into a magic crystal ball and
sounds too good to be true it probably is. Therepredict the future. If that was true we would all
are no bargain basement prices to be found,be multi-millionaires!
simply because the demand is so strong for these