Tag bad ideas | Main Street Coin

January 18, 2016

Five Ways To Ensure Your Coin Collection Is A Good Investment

The idea of making money from your coin collection is intoxicating. Every coin collector dreams of stumbling upon a rare, undiscovered treasure worth millions—maybe hidden in an estate-sale find or forgotten in a chest in your great-aunt’s attic.

But we live in the real world, and here, valuable collections rarely happen by accident. Instead, they come from hard work, smart purchases, and patience.

If you want your coins to gain value as they age, do not buy unless you can answer “Yes” to all of these questions.

Is It Rare?

Chances are if a coin wasn’t particularly rare when you purchased it, not much is going to change with the passing of a few years. If you are looking for an investment then the coin needs to be rare, preferably with a demand that exceeds the supply.

Delving into U.S. coins with limited runs or the rarest coins from a particular series is a good way to start. Certified ancient coins are also worth consideration.

Is It Authentic?

If you’re planning to drop a lot of money on coins, make sure you’re getting the real thing! Whether you are purchasing rare U.S. coins or ancient coins, make sure they are certified. Familiarize yourself with reputable grading services like PGCS for American coins or NGC for ancient coins.

Is It in Good Condition?

You already know that condition affects the value of a coin, but increases in value aren’t always consistent across grades. If you are looking to make money on an investment, purchase the best specimen that you can afford of a particular coin.

Can You Move It?

Just because the value increases doesn’t necessarily mean there is anyone out there willing to buy it. As we mentioned earlier, focus on coins that have greater demand than the actual supply can satisfy. If there isn’t interest from collectors, you may have trouble moving certain coins.

The last thing you want to do is discount the sale of an investment!

Is It a Fair Price?

Just like any other investment, the number-one rule is to buy low and sell high.

It’s easy to get excited when you find a coin you want—and too easy to rationalize that purchase. But when looking at coins from an investment standpoint, it’s not about your desires. It’s about the market and the appropriate price range for that coin.

Finding them takes more time, but you’ll get the biggest return over time if you buy coins below their fair market value.

December 6, 2015

Three Worst Mistakes to Avoid When Starting a Coin Collection

John’s in deep trouble. He just started collecting coins, and had a great collecting plan: a smart budget, an interesting collection type, and a steady approach to shopping for his first coins.

Then he forgot it all and started making big mistakes. He got overexcited, pulled the trigger on a bunch of coins without researching them first. He blew his whole budget (and then some!) on a stack of coins worth less than what he paid for them.

Now he’s broke, has no money for new coins or anything else, and his wife is on his case.

Don’t be like John.

Coin collecting is a fun, rewarding, and potentially lucrative hobby. Stay smart and avoid these beginner mistakes.

Avoid Impulse Buys

Buying on impulse is the fastest way to throw away good money on a bad investment. Don’t get suckered by a smooth-talking salesman or a shiny Instagram pic.

Think about it just like any other investment. Do your research. Look at CoinWorld.com, PCGS, the Red Book, and other reputable resources to get an approximate valuation for that coin. These tools will let you pay a fair price and avoid those bad deals.

Store and Handle Coins Properly

Some inexperienced collectors take their coins home and toss them together in a box or storage container. The coins spend their days rattling around together, getting tossed out on a table and manhandled by grimy, uneducated hands.

This is a great way to destroy the value of your coins—so don’t do it!

Coins should be properly stored in special coin albums or folders. This prevents them from coming in contact with other coins, which will cut down on nicks, scratches, and other damage.

When handling the coins, hold the edge of the coin—never the flat obverse or reverse faces. This will minimize the transfer of oils to the coin, preventing unnecessary erosion or other damage.

Don’t Clean That Tarnish!

This is where many collectors run into trouble. It is important to use proper cleaning techniques on coins in your collection. The best advice for cleaning coins: DON’T.

It can be tempting to remove tarnish and imperfections from a coin, so you have a pretty collection of bright and shiny coins. However, this is one of the worst things you can do for your coins. Tarnish gives a patina to a coin that makes it more valuable to other collectors.

Store your coins properly and keep them away from cleaning supplies.

Did you like this post? Check out “Should We Say Goodbye to the Penny?” and our other great articles.