Collecting rare silver and gold coins is a fun hobby, but it is also a smart investment. However, it can be difficult to know the best way to start a rare coin collection. Here are some things to keep in mind to make your coin collection the best investment it could be.
Study coin grades.
Before heading into a rare coin dealer, study the coin grades that are available. A coin grade is the condition of the coin itself and it significantly influences the price, sometimes by up to hundreds of dollars. Because coin grades are difficult to spot for new collectors, it is wise to not only study coin grades beforehand but also to look for coins that are verified by a third-party grade service. Some examples of services like this are NCG, ANACS, or PCGS.
Shop around.
Most likely, there are multiple coin dealers in your area. Shop around at these dealers to compare prices on similar coins. Once you have an idea of what a certain coin should cost, you will also know if a particular dealer is charging more than necessary. Also, keep in mind the state of the market for metals when you are looking for a coin dealer.
Watch the market.
As mentioned above, it is important to keep an eye on the market for the cost of silver and gold. For many common or newer coins, the cost will be based mainly on the value of the silver or gold that the coin is made from. Knowing the market, or spot, price of silver and gold can influence your decision in a dealer. Try to find a dealer who is charging just under the spot price for the metal.
Look for trusted dealers.
When investing in rare coins, it is easy to be scammed out of money by an untrustworthy dealer. There are multiple organizations for dealers that can vouch for their authenticity. For example, PNG has a strict set of guidelines a dealer must abide by in order to be a member. Additionally, groups like PNG offer protections for customers who purchase from their authorized dealers.
Find a focus.
Instead of trying to collect every coin you find, try to narrow your search. For example, you can narrow your search by deciding to only collect coins from a single country or a single year. Some collectors even collect every minting of a particular type of coin. Finding a focus like this earlier on will help you put your money towards coins you really want to collect.
Enjoy yourself.
Collecting coins is a type of financial investment, but it is also something you should enjoy. Every coin has a history behind it, so don’t be afraid to learn that history and enjoy the actual process of collecting the rare coins. The search for rare coins is as much an adventure as it is a financial plan. Finding coins of decent value is good, but make sure those coins are also coins you want to be adding to your collection
