newby, just read Scott Travers, I am more educated but still don't know what to do?

I am nearly done reading Scott Travers book The Coin Collector's Survival Manual. Wow, there is so much info in it, its hard to take it all in. But it all seems like very good advice on making profitable decisions. I realize that Mr. Travers deals with very expensive coins and wealthy collectors and his advice and experience is invaluable. I am certain that his advice would help most any collector. Only problem is I am a newbie, I do not have any expensive coins, do not expect to buy any expensive coins soon, and cannot afford them right now.

One of the points he makes is not to waste money buying common coins. As common coins will always be common and not appreciate much in value, where rare coins can become scarce and be very profitable. Makes perfect sense to me.

At my experience and comfort level, I do not really feel I should be spending more on a particular coin than say in the $10 to maybe $50 range. I suspect that in that price range you are only going to find "common" coins, even if they are slabbed. I want to enjoy buying coins that I like, but would like to think the money is being invested and not just spent to buy just another coin. I realize there are no guarantees, but really not sure what to do, as his book really did not cover what to do in my situation.

All I know to do at this point is to pick a coin series that I like and learn all I can. The coins that I am drawn to are these coins and in this order, Mercury dimes, Jeff nickels, Indian Head cents, and Franklin halves. I am not feeling compelled to complete a series right now, but would just like to work on getting nice examples of a particular series.

I would appreciate any thoughts or advice on this, and hope my comments or questions are too broad. But thanks for reading and replying.

Randy

 

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Randy - collect what makes you happy. If Mercury dimes float your boat, learn all you can about them. Buy the ANA grading guide. Go to a coin show and look at lots of slabbed dimes to get a feel for how the TPGs grade them. Learn a little before you spend any big bucks. If you're spending $10-50, your downside is fairly limited. I think Travers counsel is for a much higher dollar collector/investor. Focus on what YOU like, worry less about making money.

 

Do as catbert says, collect what you like and continue to read more books on the subject, many will say to get a red book which is all fine and dandy. Im currently reading NGC Guide to grading modern coins and think it is a pretty good book for someone such as yourself. It'll give you an idea of were to begin and how to pick out those tresures even if it isn't the most exspensive coin. Also I think starting off with the Jefferson Nickels would be a exelent start for collecting.

 

Randy,

It's one thing to try to educate yourself so you don't get taken to the cleaners, but if you intend to collect coins more as an investment than a hobby, you might as well buy real estate. While I've never read Travers' book, if as you say, it suggests buying high-end coins, this is where "investing" comes into play for the wealthy clients who can afford them. It's definitely not a plan for the average-income collector. You should collect what you like and can afford. If it just happens to be common-date "widgets", so be it!

Chris

 

Randy,

I read Travers' book. I've read dozens of books on investing and collecting. I do ok, but I am certainly not a man of means who can roll the dice on a 20k coin - hoping that it will increase in value. If I took a hit on something like that I'd be exposing my family to big time financial trouble.

I really, really, like coins. I am interested, like everyone, in making a little bit of money while enjoying my hobby. However, I've been a serious collector for only a year. You can read as many books as you want, but unless you have decades of experience in high investment grade coins you will never really understand the market. Keep in mind as you read things written by people like Travers that you would be competing against guys like him in the investment arena. I'm pretty confident I'm going to lose that game 100% of the time.

I've concluded that if I can enjoy this hobby for 20 years and then sell all my stuff and get my investment back, plus inflation, I will have done well. How many hobbies can you engage in for two decades and then recoup the money spent enjoying it? Not too many. I'm a type collector at the moment. I don't really have the drive to get all the Peace Dollars or all the CC Morgans. A nice representation of each in as high a grade as I can afford is enough for me.

For my stab at investment, I try to buy key dates/conditional rarities in series that are sleeping right now. Jefferson Nickels, Roosevelt Dimes, Washington Quarters, etc. They are inexpensive and have the possible upside of increasing in value years down the road if the series gets more popular. If they don't increase in value, no big deal. Most of them cost less than $20.

Leave the investing to the guys who are players in and understand the rare coin market. You won't beat them. You'll also just be another stressed out "investor" not a happy, interested guy with a neat hobby!

HAVE FUN.

 

Collect what you can afford. I am just getting into coins worth $100+. My goal is to build a beautiful set of V nickels. You can pick Mercs up for $1.30 or so a piece.
Roosevelt dimes in low grades are cheap too. Travers is just trying to make people dream of getting rich. Certified coins is a tough market with gradeflation. But the key thing is remember to enjoy the hobby and collect what makes you happy! There are plenty of series that can be built on small budgets. tommybee is right with investing in sleepers. Maybe common BU silver quarters will skyrocket in future years. So just buy what you can afford! Do not get discouraged by people who try and make you dream of getting rich.

 

Well said tommybee. Randy, do as Catbert said. If you really like coins and the hobby, just collect what you like. If you're looking at it as an investment, you really won't enjoy the fun part of collecting IMO.

 

First, thanks for all the thoughtful replies. I will do as you all suggest and just work on collecting coins I like. I realize that I will not be able to retire on coins that I paid under $100 unless of course I have lots of them. I really want to learn enough not to loose my butt buying coins.

I have bought a Red Book, Cherrypickers Guide Vol 1 and Grading Coins By Photographs and have read the text in them. The Cherrypicker guide is interesting, but have not figured out a method to use it practically.

Lately I have been looking at some slabbed war time silver Jefferson nickels that are in my price range on I thinks its called Collectors Corner that is linked to PCGS site. I do not live close to any coin stores or coin shows. I attended a show in Charleston WV last Oct and plan to go back this year, but its about a 2 hour drive. So I hope that one of better dealers on that site would be a safer bet than ebay.

Again, thanks for taking your time to reply and help me out.

Randy