The world of coin collecting is like a treasure hunt. There’s research, strategy, and the thrill of the find. Yet collectors know that it takes much more than dumb luck to build a valuable collection. We’ve taken the time to outline five starting point questions to consider before buying an old coin.
1. Who Am I Buying the Coin From?
The most important consideration is identifying a reputable, experienced dealer and building a trusting relationship with that business. You need to know that you can rely on the dealer for honest advice and accurate valuations. The perk of such a relationship? Your dealer will get to know you and your collection, and will help you find your next treasure!
2. Does This Coin Fit Into the Goal of my Collection?
Speaking of goals, what are yours? Are you interested in a particular mint year, time period, or country? Do you want your collection to be focussed or eclectic? Specializing tends to drive most collectors, but there is no right or wrong answer here. Just make sure the coin you’re looking at fits in with your current (or aspirational) collection.
3. What is the Coin’s Grade?
Studying the intricacies of grading is quite a commitment. This is where the importance of #1 comes into play: Working with a trusted dealer who can guide you in the grading process. But learning the key concepts will make your treasure hunt that much more fun! Plus, the coin’s condition will often drive your purchasing decision.
4. How Long do I Plan to Keep the Coin?
Most discerning collectors take the long-range strategy of holding their collections for a long time. These collections are probably going to be passed down through multiple generations. But there are some situations where a short-term flip may make more sense – that’s where keeping an eye on the market and buying/selling comes in handy. Keep this question in mind when purchasing your coin.
5. What is the Coin’s Value?
Now you may wonder why we’ve put this question last on our list. Coin value is just one factor in your purchasing decision, and it may not be the most important. Referring back to #1, working with a reputable dealer will take the uncertainty out of a coin’s valuation. But obtaining an accurate valuation will ensure you are paying a fair price for your new treasure, and give you an idea of its potential future value. (And if your dealer is Preferred Coin Exchange, you also have our exclusive Profit Guarantee.
Using these five concepts, you should have a great starting point for your next old coin purchase! If you would like more information or have general questions about coin collecting, reach out to the numismatists at Preferred Coin Exchange — your destination for the best rare coin dealers and coin collecting consultants.