Savvy collectors and rare coin dealers throughout the world buy and sell countless coins—some for substantial sums of money. But each of them had to start somewhere. Here are a few tips to keep in mind when starting your venture into rare coin collecting.
Starting Your Collection
Typically, most collectors are hobbyists. Some are casual collectors who started after sorting through some loose change or catching a coin show on TV, and they may have an interest in art or history. Others see coin collecting as an investment, hoping to cash in later in life. Figure out what drives your interest and go for it.
What Can You Afford?
How much you can spend depends on what is in your budget. It also depends on if you view rare coins as collectibles or as an investment. Oftentimes, investors or collectors will dollar cost average, much like investors do with traditional investments, to reduce their overall basis. All serious collectors spend money buying coins, visiting rare coin dealers, attending conventions and shows, as well as various other events. Collectors spend anywhere from $500 to $50,000 or more on coins based on their disposable income.
Start a Collection
American state quarters are the most popular coin series for starting a collection. Each state’s coin has a unique design, which is usually appealing to anyone thinking about collecting. Assembling a collection of state quarters can be a fun and exciting way to assemble a collection, as many of these coins can be found in general circulation. Other intriguing series are the $1 Presidential Coins, Lincoln Cents, Jefferson Nickels, and Roosevelt Dimes.
Do Your Research
To succeed, learn everything you can about coins. Check in regularly for status and inventory updates at your favorite dealers. Without taking the time to educate yourself, you risk falling into the trap of common coining tricks and wasting money on coins that are counterfeit, erroneously graded, or have obscure problems. Get yourself some reliable reference books, and learn how coins are appraised. Scour the internet and subscribe to some publications on your favorite area of coin collecting. Visit some rare coin dealers. The more you know, the better.
Cultivate Your Collection
If your collection is stagnant, purchase some rolls of coins from a local bank. Keep any that contribute to or complete your set, then, return the rest and buy more rolls. Meanwhile, keep researching and seek out other collectors with interests similar to yours. Once you’ve decided on the coins you want to collect, find out where you can get them.
Preparing for Rare and Valuable Coins
So, you have started small and have an adequate collection without spending much money. With what you’ve already learned about rare and modern coins, their history, and the value of those in your collection, start to work your way back through older coins. Check out the appraised value of rare coins with some rare coin dealers.
Starting a coin collection can provide years of enduring enjoyment, and for some, a wise investment. You just have to figure out what you like to collect.
