Are you planning to make money collecting coins?
Some coins are worth millions, such as the 1794 Flowing Hair Silver Dollar. It’s unlikely for you to come across something so expensive. However, you have lots of opportunities to earn as a collector.
If you wish to become a coin collector, continue reading this guide. We’ll discuss some tips to make the most profit in your make money collecting coins operation:
1. Educate Yourself
The most successful coin collectors in the market study hard. They learn as much as they can about numismatics. Aside from studying coins, they strive to study the market dynamics whenever possible.
It’s best to buy and read as many books as you can about coins. Supplement these learning materials with specific catalogs. These should relate to your chosen specialization.
As a serious collector, you can even make a database of prices. List down the costs of each coin related to your specialty.
Subscribe to periodicals to enrich your knowledge. Join the American Numismatic Association since they send books to members. Expect to receive these educational materials via the mail.
Do you have good social skills? Find other collectors in your area and become friends with them. Never hesitate to ask questions and improve your coin collection strategy.
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2. Develop Your Specialization
Starting a coin collection is difficult if you have no goals or boundaries. It’s best to use a micro perspective when viewing numismatics. For example, collecting Charlotte gold coinage limits you to 52 specific issues.
When you commit to this specialization, you’ll become an expert in this area within a year or so. Meanwhile, it takes several years to achieve a similar level of knowledge in a larger field.
A well-versed specialization allows you to make the playing field fairer between you and other coin dealers. It also ensures you make better coin purchases.
3. Always be Patient
Most new collectors make the mistake of jumping in too fast. They become obsessed with completing their coin sets as soon as possible. However, the best coin collections take many years to build.
Sometimes, you can buy some great coins within a short period. The usual situation is the opposite. The opportunities are few and rare.
As a new collector, never feel tempted to buy the wrong coin. It applies even when you need it for your set. Rash decisions can cost you a lot in the long run.
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4. Develop Connections
It’s better to learn about topics like pricing, market conditions, and future trends from dealers and collectors. It’s especially when they attend shows and auctions. Most coin brokers or sales personnel aren’t as trustworthy since they only get diluted information.
Sometimes, newsletters and coin magazines are out-of-date and biased. Establish a good working relationship with reliable dealers. If they have lots of meaningful connections, you’ll get unbiased information.
5. Think Like a Collector
You’ll lose money if you approach numismatics with dispassion. Meanwhile, pure collectors make money despite themselves. It’s because they buy coins for the sake of loving them.
These people thoroughly study their purchases for the sake of their interests. For example, they will likely know their purchased coin sold for 10% more at an auction. They aren’t buying overhyped coins during a promotion.
Professional coin collectors aren’t buying coins because someone told them. They don’t fall for sales pitches, even for a specially designed coin.
When you think and act like a true collector, you’ll have fun and expect a more reasonable profit margin. It’s a wonderful trait since you’re playing the long haul.
6. Learn How to Grade Coins
Some people spend millions on rare coins without learning how to grade. These collectors blindly trust their dealers and third-party graders. It’s a baffling attitude since it often causes you to lose a lot of money.
A good attitude is to avoid buying specific coins if you aren’t comfortable grading them. It’s especially when you’re starting your career as a coin collector. For example, avoid buying Indian Head half eagles when you lack the knowledge to grade them.
When grading, view as many coins as you can. Attend lots of shows and auctions to look at them. If you have time, sign up for grading classes and seminars.
Again, it’s better to specialize in specific coins to make grading easier. Ask for grading tips from dealers you trust.
7. Think About the Long-Term
If you’re looking for a quick buck, coins are a terrible investment. Even when you buy them at a fair retail markup, you’ll pay over 10% of its typical price. It means you have to wait for them to increase at least 10% in value to break even.
Some collectors hold coins for over a decade to make the most profits. The best coin collections, such as the Norweb, took over fifty years to build.
8. Focus on Quality, Not Quantity
High-quality coins are already hard to find, making them more expensive. It’s why you must focus on buying a few high-grade coins than lots of mediocre ones.
For example, your budget is $20,000 each year. Instead of buying twenty $1,000 coins, get four $5,000 ones. Get the best coins you can afford since it’s a more intelligent decision in the long run.
Some of the best dealers say your entire collection should fit a small shipping box. A generalist is better off collecting a few high-grade coins.
9. Buy the Best Coins You Can Afford
Avoid buying anything expensive until you have enough knowledge about the coin market. Start small and study the market for at least three months. After you feel more comfortable with what you know, it’s time to plunge deeper into the market.
Make Money Collecting Coins Now
These are some tips to make money collecting coins. Never let various types of coins cloud your judgment. Use these to ensure your collection has the best chance of earning you a fortune.
Did you find this guide informative? Consider reading our other posts and expand your knowledge today.