This helpful beginners guide for coin collectors will give you the tools to collect coins with confidence. Many collectors launch into numismatics with enthusiasm only to be sold on the wrong coin or pay way too much. It is true that collector coins are just that, collector coins, and they can be sold for what people are willing to pay for them. However, having a better understanding of the market and knowing where to find low-premium coins will keep you ecstatic about your hobby for years. Like with any hobby, the better informed you are, the better collecting decisions you will make.
The first step in getting better acquainted with your hobby is to understand coin terms. When a coin salesman throws a bunch of fancy terms at you to describe a coin, it’s always nice to understand them as if he was talking about options on a new car. Be weary of representatives using high pressure tactics. This is a big red flag. There are certain situations where a company may only have a couple of an item in stock, but do not allow their inventory to sway your decision.
Basics of Coin Grading and the Importance of Quality
The topic of coin grading and in particular, the Sheldon Scale, is something all coin collectors need to understand. We cover this topic in a previous blog post where we breakdown the Sheldon Scale. Back in the 1940′s, Dr. William Sheldon began establishing a unique method of organizing his massive penny collection. Completed in 1949, his quality scale of 1-70 was quickly adopted by other collectors as “the best way to describe the quality of a coin”. Recognizing it’s efficiency, the American Numismatic Association (ANA) adopted the Sheldon Scale in 1977 with the major grading companies following shortly thereafter in the early 1980′s.
The single most important determining factor of value in a coin is it’s condition. The higher the grade, the more the coin is worth. Collectors have had and always will have a desire to own fine things. Knowing you have something of better quality than the majority of other collectors makes one feel good. Owning something that not everyone has a chance to own is why collectors collect. You may ask yourself why pay more for MS70 coins? Perfect 70 graded coins are highly desirable because of their flawlessness and rarity. Very few coins minted ever get submitted for grading and of those that do, a small percentage merit the flawless 70 grade. The natural minting, packaging and shipping processes leave way for small defects and scratches on coin surfaces. Any coin not in circulation will grade between 60-70.
It is extremely important to have an experienced advisor you trust to work with when collecting coins. This goes for new and veteran collectors. A good collectible coin advisor stays up to date with the market daily and has a better feeling for when great deals become available. At CoinAdvisor.com, we specialize in just that, offering each collector a person advisor to inform you of market updates, great deals and answer all of your collecting questions. To get in contact with one of our friendly advisors, fill out this contact form and we will be in touch same day.
Enjoy Discount Pricing on Your Collectible Coins
There is no worse feeling that finding out you paid way too much for a rare coin. This is another benefit of having an advisor you trust that proves themselves time and time again to you. There are many choices a collector has when buying collectible coins; online dealers, auctions, coin/currency expos and TV network infomercials. Without knocking any of these medias directly, you must realize that if the production costs to promote a coin are high, than so are the premium added to the coin. Some large companies that sell coins on TV pay millions and millions of dollars in media costs to air their coins and pay their hosts. This overhead has to be accounted for somewhere, unfortunately it trickles down to the cost of your purchase.
On the other hand, great buys can be found more regularly online and at coin expos because of the low overhead to market their products. Auctions are also becoming more popular however they takes days of close watching to get a good deal and you have little recourse if you don’t receive exactly what you bought.
Our online store offers the coin market a low-cost option to buy rare collectible coins. Compare our pricing with the major coin catalogs out there and you will see the savings is significant. Browse our online coin store here and save up to 20% and even more shopping your favorite collectible coins. Enjoy FREE shipping and handling as well on all orders. We hope this guide is helpful for newer coin collectors. Remember, the more informed you are, the better collecting decisions you will make.