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Coin Collecting Tips for Beginners

Coin Collecting Tips for Beginners

 

 

If you are new to coin collecting, chances are you are coming into the game with zero prior knowledge.  There are a few of you who might have a father or relative of some sort that collects coins.  Either way, these tips we are about to share will help you.  It doesn’t matter if you know a lot or a little… you should always follow these basic coin collecting tips for beginners.  

 

  • Use common sense!

One of the best coin collecting tips that I can give is to use common sense. If you study numismatic facts and stay away from the opinionated posts, you will know truth. I if you stick with the truth and use your brain a little bit, you will be just fine.
If you see a good deal at a yard sale or from a non-experienced seller, then go with it as long as it’s not a pricey investment. But what about if you see an amazing deal on a pricey coin?
Let’s say you find a coin on eBay that will sell for $5000 even the worst condition. While searching on eBay you find this coin for sale at a price of $550. Even though this seems like an amazing deal, I would recommend you not purchased this coin unless you have proof of the coins and legitimacy. However, if you find the same deal and the coin has been certified by a known company such as PCGS or PNG, then by all means you should purchase that coin.
This is what I mean by using common sense. Many times if it sounds too good to be true it usually is (there are always exceptions). If possible you should always buy the graded coin before the raw coin because the graded coin is not a risky buy. A graded coin is much easier to sell on the open market than a raw coin.

 

  • Study any relative material you can get your hands on

For all the coin collecting beginners out there, I recommend you purchasing 2 specific books.  The first one is THE CHERRYPICKERS’ GUIDE to Rare Die Varieties of United States Coinsand the second book is THE OFFICIAL RED BOOK A Guide Book of United States Coins.   These 2 books will help you tremendously if you are a newcomer to the numismatic game.  Both of these books are a must have because everyone uses these books!  Every coin store I have ever been in has tried to sell me these books!  They also use these books as a study guide and price guide when determining prices.  I can’t stress enough how important it is for you to own a copy of both these books. Make sure and check out eBay and Amazon to get these books a great price.

 

 

You can also look at other places besides books for information. Websites are great place to find valuable information. You can always register for a free account here at Rich Off Error Coins. There are other websites where you can find loads of information such is doubled die.com and VarietyVista.com.  All of these websites are great places to begin your search for error coins.

 

  • Learn about grading coins

Go to a site like eBay and look around at the different error coins. Check out the prices of every coin and noticed the difference in the fluctuating prices. One thing that you will notice, is the coins that are graded (the coins in cases with a grade at the top) are definitely more valuable.

One reason is coins cost more is because the owner had to pay to have a company grade the coin. Coin grading is very serious. If a coin has been touched by hand instead of a glove that could possibly take away from the grade and therefore the value of the coin. Most the time small scratches that can barely be noticed will take away from the grade in the value of coin.

Another reason is coins cost more is assurance. This grade (when graded by one of the top grading companies) guarantees that the owner is buying a legitimate coin and not a fake. Each coin that is being graded is given a number or barcode and classification. The owner can then look up the coin by that classification to make sure that they are getting the right coin.

The more you know about different grades of coins and anything else related to coin grading, the better you will be at identifying error coins. The better you are finding error coins the more money you will make.

 

 

  • Learn the basic laws of supply and demand

To be able to make money with their coins you must fully understand every aspect of the game. One major part of this game is supply and demand. When you sell anything the basic laws of supply and demand come and play. If a coin is in demand meaning every collector wants one, the price will go up. However, if a coin is not in demand the price will usually be lower. This is the demand part of supply and demand.

The supply portion of supply and demand is talking about quantity. Even if a coin is in demand the price can stay low. Let’s say there is a coin it’s in high demand because 10,000 coin collectors want to own one, but there were 100,000 of these coins minted. Therefore each collector can own 10 of these coins which means the coin would not carry much value if everyone owned one.

Understanding this basic knowledge will help you on your journey to getting rich off error coins.  

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