My unsolicited list of 20 collecting tips/comments/advice...

Below is my list of 20 collector tips/comments/advice that I have posted on a few coin forums and which appears on my website. I thought that I had already posted it here, too, some months ago, but I couldn't find it. As I am unfamiliar with the intricacies of "search" function here, I certainly could have missed it. Either way, here it is, and I hope that it is of some benefit to some of you.


Following, in no particular order of subject matter or importance, are my unsolicited comments and advice about coin collecting for collectors - please feel free to contact me at any time if you'd like to discuss any of these topics.

1. Buy/collect what YOU like. But keep in mind that when it comes time to sell, not everyone else will necessarily like what you did/do.

2. Examine as many coins as you can which have been certified/graded by the most highly respected grading companies. This can be done at coin shows and in auctions and is a great way to improve upon your grading skills.

3. The best way to improve your grading ability is to find someone who is highly qualified AND willing to spend time reviewing coins with you. That person can be a dealer or collector, but he needs to be more than just a friend - he needs to be a teacher. Many individuals are "qualified" OR "willing to spend the time", but few are BOTH.

4. Don't keep buying coins without ever selling any of them - learn what it's like to try to sell, too. Once in a while you should offer one or two of your coins back to the dealers you acquired them from. See how they deal with that type of situation and whether they want to re-acquire those "gems" they sold to you.

5. Don't be afraid or embarrassed to ask lots of questions. You and just about everyone else can learn a great deal that way.

6. Be aware of privacy and security concerns. It might not be fun to do so, but it's extremely important.

7. It's always good to get a second opinion. Doing so doesn't make you less knowledgeable, worthy or confident - it simply makes good sense.

8. Don't try to get bargains at the expense of quality and desirability for the coins you're buying, or you'll likely end up with sub-par coins which aren't bargains, anyway.

9. Generally, I advise against "investing" in coins. Even if you are very well informed, based upon buy/sell spreads and other factors, the odds are against your success. That said, I understand that many collectors end up spending significant sums of money on their collections and can't/shouldn't ignore the financial implications.

10. If you are going to "invest", I'd suggest diversification - not putting too much of your money into one coin or one coin type. I'd also recommend staying away from especially esoteric and/or illiquid and/or currently "hot" items.

11. While it is not a pleasant mindset to engage in, think about and plan for how your coins should be disposed of if/when something happens to you. Make your spouse and/or family and/or friends and/or an attorney aware of your wishes. If you have a particular dealer or coin/auction company that should be contacted, have that information recorded, along with costs, sources, purchase dates, etc., of your coins.

12. Eye-appeal is hard to ignore, but technical quality shouldn't be over-looked/compromised.

13. If you participate in auctions, whether over the Internet or in person, set your price/bidding limits in advance and stick to them. Auction fever hits many bidders, and almost always to their detriment.

14. Find time for other activities that don't have anything to do with coin collecting. Don't make coins your whole life - life is too short for that.

15. If you are going to stretch to buy a coin, do it for a coin which is truly special and/or virtually irreplaceable, not on an ordinary one. There are far more of the latter than of the former, and there will almost always be other opportunities.

16. Don't talk yourself into buying a coin. If something about it bothers you now, there is an excellent chance it will bother you as much or more later.

17. Don't be lulled or suckered into a false/unrealistic sense of security by the strength of many areas of the market that we have experienced for several years now. There are good markets, and, while some current participants might not have experienced them yet, there are bad markets too - I promise.

18. Do not buy rare coins on a sight-unseen basis, regardless of the seller or the images.

19. Enjoy our hobby.

20. I repeat, enjoy our hobby.

 

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Excellent tips Mark!

I'm working on #4 right now, it will be my first sale. So far it's not going to well, but we'll see by the end of the week.

I also tend to have problems with #8, but I think I need to look at it like I'm buying the coin(s) for someone else. I did this with my father-in-laws 1937 birthyear set, and I think it came out pretty good.

 

Good tips!

Now for #4 - if you do all the other steps why would you want to sell? Just curious how this fits in - and I do agree it can be a humbling experience. I forced myself to return one of the "gems" to where I bought and took a loss - I do not blame the dealer it was my lack of knowledge for buying the coin at that time. I also know I probably could have tripled what I got for it by selling on ebay. I did fine with my bullion coins, but this one was kind of a beating.

 

"

16. Don't talk yourself into buying a coin. If something about it bothers you now, there is an excellent chance it will bother you as much or more later.


"

good one

 

Thanks for the tips. I sure did the opposite of what you say several times when I first started to collect. But then again, who didn't?

Unfortunately, some of your advices have limited utility for someone like me. For example, #2: you won't find many (if any) TPG graded examples of the type of coins I usually buy. Still, even if learning about prices is out of the question, you can still learn basic grading skills that way that you can apply to the type of coins you buy.

 

Great Job Mark!! I love buying coins but I also like to sell them when I loose interest!!

#1 Buy what you want and if you like it that is all that matters.

 

I liked em' all

About number 18 though... Are you suggesting not to buy rare coins over the internet, such as heritage, or an auction with a full refund if not satisfied?

 

As long as you can get a full refund in the event that you're not happy with the coin, that's fine. At that point, it becomes a sight-seen transaction, however.

 

Yes indeed it does Mark.
I've bought two coins in person, and the rest have been online.
I would say that number 18 could be changed, or re-worded a bit.
There is nothing wrong with spending 1 million dollars on a coin over the internet, as long as you can return it.

 

I am going to disagree to a degree, if I buy a million dollar coin from a guy with a storefront, he more than likely be there next week, at least the odds are higher. A guy over the internet could dissappear immediately. My opinion, I will never (of course I have never spent over $1,000 on a single coin) spend $1,000 on a coin without holding it.

 

If you can return the coin (without penalty), then the coin transaction isn't really "sight unseen" per-se.

 

Okay so maybe $1,000,000 was a little extreme, but $1,000, or even $5,000 might not be. Just think of it this way, if he disappears, and you don't get your money back, you can sue him, or you could file a dispute with paypal.

Yes, I guess so, but taking it literal, "sight unseen" making it so you buy the coin without seeing it first, then buying it, but there would be no risk, that is all I am saying.

 

I agree with most of your tips except #4. I hate selling and won't do it. I like collecting coins and I collect ones that I like. Why would I sell something that I bought that I liked? Do I want to torture myself later by having to sell them, something I hate? Life is too short and I don't need the stress.

 

Well you can always sell what you like, for something that looks better.... Upgrading...
Also, interests change, one year you could love barber halves, the next year, indian head cents.

 

My interests do change but my lack of wanting to sell never does. I hate selling stuff. When I tire of stuff, I give it away. On the other hand, I've never tired of any of my coins.

 

That's fine with me - it's your coins and your decision. I'm glad to hear that you are that happy with all of your coins. And you are not the first collector to take issue with me on that point. I will say that by offering a coin for sale once in a while, there is potentially much to be learned about the market, your coins and the sellers you acquire them from.

 

Don't be modest - I knew you were a big spender.

 

The internet makes a market read incredibly easy. It is a wonderful thing.

 

I disagree. The internet is of some help in that regard. But I have seen numerous collectors shocked at how difficult, if not impossible, it was to sell their coins at what they (mistakenly) thought were realistic prices. Back to my original point - unless/until you try to sell, you can't know.

 

I've spent maybe a little more than $1,000 on coins since I started collecting 1 year ago
So I have a rather small budget, compared to what is in your inventory Mark