Repost--Thread about advice to newer collectors on how to buy without being victimized

Decided to re-post this one, and hope that comments will be restricted STRICTLY to advice for new and middle-level collectors, who are just getting their collections together. Can we keep this one argument-free please, as there were some excellent suggestions:


Just wanted to write a few notes on some suggestions for purchasing coins, and not being oversold, or vulnerable to scams, frauds, and misinformation. This is in NO WAY a condemnation of dealers (I have lots of dealer friends), veteran collectors who have "their way" of doing things, or investment "rollover" collectors. I just want to say a few words for the new collector, or middle-level neophyte who still has not acquired a lot of experience in purchasing coins and assuring that he/she is not over his/her head:

1. Buy from reputable dealers only. There are many of them on this forum, and lists abound here. Reputable dealers are honest, decent, nice people who deserve our patronage, to keep their businesses profitable. If someone is offering you a deal that seems shaky, or too good to be true--it is!!

2.Develop a rapport with dealers and collectors--if you are friendly with them, they will be friendly in reciprocation. Your purchasers will be worry-free.

3. To quote an expert on this firm who has written extensively, "BOOKS BEFORE COINS." He is right--learn your coins first by reading about them, before you touch metal. Lists of books abound here, and on other message boards and sites. Learn the series that you wish to collect before you buy.

4. Be cautious of Ebay. If you don't know the seller, or the seller has some negative feedback, that should be a warning. Notice that I did not say "avoid Ebay," as a lot of beautiful coins can be found there for the right price. Just do not impulse buy there. Many of the posters here have Ebay stores, and will be happy to deal with you. Once again, if a coin just "Does not feel right to you," listen to that feeling and pass on it. Once warned/not burned. There are lots of scams on Ebay.

5. Be cautious buying raw. Many coins can appear nice. However, if you are not familiar with the series--don't buy a coin until you check with people who know better, or look at your books, and compare appearances. There are lots of really bad, doctored, cleaned, damaged coins that bring in much profit for the dubious dealers, especially on Ebay. Learn to grade, and recognize a damaged coin before you dabble in the raw market (unless it is the bargain bin, where you don't have much to lose).

6. Unless you are expert, NEVER buy a key date that isn't certified, and make sure the slab isn't a fake one. This is especially important so as not to lose money on expensive coins, only to find out that they are not what they seem.

7. Learn to grade. Learn the rubrics of the hobby--the Sheldon Scale, PCGS photo grade standards, and the overall ANA standards for appropriate grading. As you might notice, even the more expert collectors disagree, but there is at least a standard that needs to be mastered. Doug has oft times said this, and I agree---learn to grade. TPGs help tremendously (whether you like them or not), but they do make mistakes. Don't blindly buy a coin that is slabbed if you have doubts as to the grade.

8. Go by your gut--if it doesn't feel like a wise, intelligent purchase, it probably isn't. Your subconscious is telling you something--don't pull the trigger and open the Paypal account if you don't feel comfortable about the purchase.

9. Don't insult an honest and hardworking seller of coins by lowballing. It is highly doubtful that you will get the coin for that price, and if you don't, all you do is insult the person selling the coin. Imagine how you would feel if someone lowballed your merchandise. Make mutually fair offers.

10. Go to shows. Expose yourself to the people, the goods, and the experience--it is exciting and educational. Talk to people and ask questions--most coin hobbyists are only too happy to share knowledge.

11. You are not going to buy a 1909S.VDB for $20. Be suspicious of obvious bargains such as that, and don't think you can beat the seller. You are most certainly falling for a scheme, such as a doctored coin, fake coin, or blatant fraud. Be intelligent about that.

12. Narrow your purchases. One cannot collect every series--too many forks in the road. If you like Silver, consider dollars, halves, quarters, etc. If you want Copper, stick to it--very popular nowadays. If you like moderns, don't believe all the negative talk about the US Mint, and how terrible coin mintage is from them. You can begin a beautiful collection of moderns, just as easily as older coins.

13. Read, read, read, and then read again.

14.Set a budget, and set limits on your spending, unless your funds are unlimited. This is an expensive hobby. If you can afford (for instance) $100 a month, don't go over that by more than 5-10% maximum, no matter what. Don't jeopardize your finances for a collection.

15. Last, ENJOY YOURSELF. If you are getting angst from coin purchases, that should tell you something. It is a hobby, and you should get pleasure from it. Don't get into anxious situations, just to own a coin.

Good luck and good hunting. I am sure others have many suggestions.

 

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Wonderful post.