In a recent piece by Peter Mosiondz, Jr. for CoinWeek, the author offered useful guidance on collecting coins and outlined three kinds of people who purchase them. Atlanta Gold & Coin agreed with the article’s collecting guidance as it appeared when this article was originally published, but considered its descriptions of coin purchasers somewhat incomplete. This archived article sets out what Atlanta Gold & Coin viewed at publication as the three main groups of people purchasing coins and examines each group in more depth. Some readers may have recognized themselves in one category while finding that their longer-term objectives better matched another. Where that happened, the original article explained ways a person could reconsider priorities. It also discussed sources that, at the time of publication, purchasers were advised to avoid and noted several recurring problems Atlanta Gold & Coin had observed over the years while evaluating coin collections.
Coin Collectors
At the time of publication, Atlanta Gold & Coin described a coin collector as someone who acquired coins chiefly because of enjoyment of the hobby. Many people fit that description. Within that group, some collectors devoted substantial time to study, research, and carefully selecting pieces for their collections. Those people might be called “numismatists,” although the original article noted that they were more often simply serious, high-end collectors. They were the collectors likely to investigate a coin thoroughly and then wait for weeks, months, or even years for the right example. Their collections might not have contained the greatest number of coins, but they commonly included attractive, high-quality examples of the coin types they chose to collect.
A second kind of collector was the general collector. When this article was published, that person might have wanted the newest U.S. Mint product, one example of every set in a series, or a coin album with each opening filled. As a dealer specializing in purchasing estate coin collections, Atlanta Gold & Coin regularly encountered collections made up of these coins and sets at that time. Whitman coin books often had nearly every space filled except for the key-date coins. In some cases, every “holes” was occupied, although the more valuable pieces could be lower-grade examples or replicas. Based on Atlanta Gold & Coin’s experience, most collectors from the “Greatest Generation” were general collectors, and they often filled gaps using coins they could find in ordinary circulation.
Coin Investors
In the years leading up to this article’s original publication, Atlanta Gold & Coin reported seeing fewer hobby-focused collectors and more coin investors. These were people whose main reason for purchasing coins was investment. They were commonly concerned about the economy and the monetary system, and viewed coins as both an investment and a hedge. Many believed their coins would rise in value as economic fundamentals weakened. They also tended to be well informed and to read popular alternative financial websites, including ZeroHedge. The original article said they were often called “stackers” because they routinely accumulated gold and silver bullion coins and stored them in a safe. At that time, they could generally state how many ounces of each kind of coin they had on hand at any given point. No single social or economic class defined this group: the investors Atlanta Gold & Coin encountered ranged from survivalists to CEOs. Their purchase frequency and volume varied, but they shared an outlook about the future value of precious metals. If other investments appeared, some might liquidate bullion coins to pursue them; however, when this article was published, many believed stocks, bonds, and real estate were all in a bubble.
Coin Buyers
The final group of people purchasing coins, as described when this article was originally published, was “coin buyers.” These individuals often bought coins after being persuaded by a polished advertisement or a coin broker that the items were sound long-term investments. Although they might have called themselves “investors,” they often did not research coin market values or historic prices for specific coins, and frequently accepted a marketer’s statements without further checking. The original article reported that many coin buyers were retired and purchased from television programs or advertisements in favored circulars. It also cautioned that such companies often targeted older people. When these collections later came to Atlanta Gold & Coin for evaluation, the business reported being struck by the excessive prices charged by less-ethical companies for items that, in many instances, had only face value. Atlanta Gold & Coin disliked seeing people misled by questionable sellers and had previously warned customers about purchasing from non-numismatic sources. At publication, readers who wanted to gauge whether an item was priced excessively were invited to ask a sales associate about the buy-back rate before completing a purchase. If the associate avoided the question, the article suggested that the buyer might be about to overpay substantially.
Assessing Your Category
The original article asked readers whether they identified with one of the categories above and, if so, whether that category matched their long-term goals. If it did not, Atlanta Gold & Coin recommended at publication that they take steps toward the category they preferred. Its stated recommendation was that “coin buyers” immediately stop purchasing coins from non-industry sources and pause to determine the desired category. For readers then interested in purchasing coins as an investment, the article suggested considering low-premium gold and silver bullion coins, particularly if they believed gold and silver were undervalued. For someone whose interest was truly collecting, it recommended education through sites such as CoinWeek and the American Numismatic Association, or consulting an experienced coin dealer they trusted. For readers who had collected without much direction but wanted to advance their collections, the archived guidance was to research the market value of the desired coin, use leading third-party grading companies such as PCGS and NGC, and review population figures for the coins sought to confirm that they genuinely qualified as rare coins.
Summary
In closing, Atlanta Gold & Coin’s view at the time of publication was that coin purchasers generally fell into three groups: collectors, investors, and coin buyers. Collectors could be divided further into higher-end collectors, who spent considerable time researching and studying numismatics and were sometimes called numismatists, and general collectors, who acquired coins and built collections for accomplishment and the enjoyment of the hobby. Coin investors were another category; they primarily purchased gold and silver bullion coins expecting them to increase in value over the years ahead. Finally, the “coin buyer,” tended to purchase coins recommended by brokers, offered through home-shopping television programs, or presented in favorite circulars. Whatever category readers occupied at publication, the article expressed hope that its information would help with future coin-purchasing decisions.
