Many people have found that collecting coins is a true passion that can thrill and captivate them for a lifetime. Because of the potentially expensive nature of this hobby, it is important to protect yourself from fraud and dishonest dealers. The most powerful tool against these unfortunate aspects of the trade is knowledge.
Always keep in mind that the same information that dealers have is available to you as well. When it comes to collecting rare coins, a little bit of research can go a long way. All coin enthusiasts want the same thing – a high quality product at a reasonable price. If you are able to point out why, for instance, a particular coin may not have been graded correctly, it is easier to have more bargaining power.
Dealers often deal in large volumes of coins. While you would assume this means that they must be experts, the reality is that they usually do not have time to learn the intricacies of particular coins. If you know what you are looking for, it is highly recommended that you learn every possible detail about that coin so that you are an informed buyer. A retailer is much less likely to try to oversell their product if they can tell that you possess a wealth of knowledge about the product in question.
By purchasing from a reputable dealer who has a long history of quality customer service, you can be positive that you are paying for certified coins and not a counterfeit or replica. Peace of mind is an essential component to an enjoyable hobby. Knowing that your money has been converted into a hard asset that will benefit you for years to come is a feeling that cannot be measured.
Always be extremely cautious if you find a bargain price coin. Most dealers are well aware of the going rate for their coins, and if they are selling them at bargain prices, it is normal to feel skeptical. Often these deals are the result of a tiny flaw in the condition that may be difficult for a non-expert to identify. When possible, have an expert examine your coin before buying, or at least be sure that there is a solid money back guarantee should things go awry.
There are many factors that go into being a shrewd coin collector and investor, but the most essential is to just stay on your toes. Be smart and don’t jump into anything and you will do just fine.
As far as how to build your collection, the possibilities are truly limitless. Some collectors opt to collect coins from a favorite time in history, while others seek out foreign coins, or simply sets or series of interest. But the rules remain the same; however you decide which coins you will target, you will need to research them. You should be the foremost authority on your collection and the collection you are trying to build. This will allow you to set reasonable goals for yourself and to budget the money you wish to invest in your hobby.
As I mentioned above, a relationship with a professional, reputable coin dealer is invaluable. While you may have access to the same coin resources as him, he has presumably spent years creating a vast network of buyers and sellers that you can tap into. He will be the first one to know when a rare coin is bought or sold, and having someone like this in your Rolodex can be as much of an asset as a rare coin itself.