Collecting Coins As An Investment

If you are someone who wants to invest in rare coins and hops to reap a profit from your collection you will likely need the services of a good coin dealer.  Unfortunately, many new coin collectors try to do the collecting on their own without professional help.  These novice coin collectors, who try to build a collection on their own, sometimes end up being scammed out of hundreds or thousands of dollars.

Coin dealers are experts in their chosen fields.  They have better connections for finding the right vendor or wholesaler than the individual who is trying to buy coins on his own.  The coin dealer will have a better chance to learn of sales of the type rare coin that interests you.  If you are new to the coin collecting trade it can be a difficult task to find the right vendor or wholesaler.

Good coin dealers are more likely to recognize a counterfeit coin. They will also know if a coin offered for sale is being over-valued or under-valued.  This kind of information is vital to your success as an investor.

When you are looking for a coin dealer it is important to know the area in which the dealer specializes.  There are many different types of rare coins people collect.  It is not possible for a coin dealer to be a true expert in all the various fields of rare coins.  A dealer may be able to recognize every rare American coin at a glance, but may not be expert on the legal tender from medieval times that you want to collect.  You want to find a dealer who specializes in the type rare coins that interest you.

A coin dealer who is highly motivated will go to retailer auctions and coin shows and keep on top of current prices and trends.  The dealer will generally be up-to-date with the current market for coins.  A motivated dealer will be more likely to provide you with excellent service and the best rare coins.

It is important to learn the coin dealer’s professional qualifications.  Does the dealer you are considering belong to any professional organizations?  How long has the dealer been in business?  Can the dealer provide references from satisfied customers?  Is the dealer a member of the Professional Numismatists Guild (PNG)?  This group has an emphasis on ethics and its members include the most reputable coin dealers in the business.

Once you have decided on the coin dealer you want to use you want to be a regular customer of this person.  Most coin dealers will charge a lower premium on the sale of coins to their best customers.  It makes good business sense to get the most profit from a person who will do business with you only once.  If you are in a long- term business relationship with a dealer the margin does not need to be as high for the dealer to make a profit. Building a long-term relationship with a good coin dealer is the best way to protect the money you invest in rare coins.

You are likely to get the best prices and service from a coin dealer who knows that you are working exclusively with them.