Building a coin collection is a fun and rewarding experience that you can share with loved ones and fellow connoisseurs from around the world. But one common criticism of our profession – and your hobby – is its perceived riskiness. Today we’re going to discuss the risks and corresponding rewards of coin collecting.
Let’s start with the big one…
Risk: Your coin’s valuation could decrease over time.
Reward: While there are never any guarantees, with an accurate up-front valuation, you are more likely to make a smart purchase that will increase in value over time. Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC) are services that authenticate and grade coins to help determine their worth. At Preferred Coin Exchange, we offer a Profit Guarantee. If you purchase a coin from us that features our 180-day profit guarantee and you are unable to sell it for a profit, we will buy it back from you! Not only will we buy your coin back, but we will pay a minimum of five percent additional on top of the original sale price so that your coin trading endeavor was still worthwhile.
Risk: You will eventually lose interest in your collection.
Reward: Life circumstances can certainly change, but we’re guessing you got into coin collecting because of a genuine passion. It is unlikely that you’ll completely lose interest in your collection, but consider the upsides if you do – you can still bequeath the collection or even sell it at a (likely) profit. There is a robust market for coins and for every investor looking to back away, there are new aficionados entering the marketplace to build their own collections.
Risk: You will unknowingly sell your coin for less than its worth.
Reward: This risk could apply to you or your heirs. Establishing a trusted relationship with a reliable dealer will certainly minimize the likelihood of a financial loss. Obtaining an updated grading in the case of certain coins could also be worthwhile. Using services like PCGS and NGC will also help you, or your heirs, determine the coin’s fair value. Finally, selling through reputable markets is key to obtaining fair value. Contact Preferred Coin Exchange for our recommendations!
We founded Preferred Coin Exchange because of a clear demand for a trustworthy coin dealer which values long-term customer satisfaction. We hope you will manage your risks and rewards with us!