Coin Collecting and Investing Tactics for Future Profits - By: Randy Harrison

While coin collecting is a fun and enjoyable hobby for most of
us, there is no reason it can't be a profitable endeavor also
with a well thought out plan. If you are just starting your
collection or advancing to the serious money stage lets consider
these facts before taking the plunge.

The key dates and semi-keys of any series have out preformed the
common dates in all grades in the past and there is no
fundamental reason for that to change in the future. The market
for these scarce low mintage coins is driven by supply and
demand and new collectors coming into the market should keep the
demand strong and healthy. On the other side of the coin, no pun
intended. If you are going to spend money buying coins for your
collection, why not buy key and semi-keys with more potential
value appreciation in the future? The investment theory here is
that the coins will have to be held for a period of time, maybe
years before a profit can be realized.

Should one buy slabbed or raw coins? Keep in mind there are fake
coins on the market, especially expensive key date coins. Set a
limit that you are willing to pay for a raw coin and don't go
over it. When buying coins graded by one of the major grading
services, ANACS, ICG, NGC and PCGS you can pretty much be
assured the coin is genuine and the assigned grade is close to
correct. Don't buy coins graded by inferior or less known
grading services. Note: I have seen slabbed coins that have
changed in color and toning from when they were originally
graded due to improper storage over time.

Buy from a well established dealer so that you can return the
coin in the event that you are not happy with your purchase.
Expect to pay close to the current book value for problem free
key-dates and semi-keys. If the asking price sounds too good to
be true it probably is. There are no bargain basement prices to
be found, simply because the demand is so strong for these
coins. In most cases the dealer had to pay top price himself and
is unwilling or unable to discount the coin.

Major coin shows are a good place to find a wide variety of the
coins that you are looking for under one roof with knowledgeable
dealers from all over the country. Internet auctions are risky
at best, especially when buying raw coins. Be very cautious
because a lot of the sellers don't know how to grade coins, much
less know if the coin is a fake. They state in their write up
description of the coin something to the effect, "We are not
coin graders - you grade using the pictures or the scans we have
provided." The sad part is the Companies running these auctions
make big bucks from the listing fees, final value fees etc., yet
they take no responsibility for what is being sold to the buyer
and they don't do anything to stop the sellers from selling
coins under these circumstances. Avoid this type of auction
completely.

Learn to grade the coins that you are interested in before you
buy the coins! The ANA (American Numismatic Association)
publishes a good book on coin grading called ANA Grading
Standards. Buy the book. Many books and articles have been
written by experts on coin grading and are available for
specific coin series. Remember coin grading is not an exact
science it is a subjective matter that is why it is important
that you become a knowledgeable grader yourself.

Any type of investing carries risk and the rare coin market is
no different than other markets in that respect. The coin market
can be and is very volatile at times. You could loose your money
or not make any money at all. You should never invest more money
than you can afford to loose. No one can look into a magic
crystal ball and predict the future. If that was true we would
all be multi-millionaires!

The key dates and semi-keys of any series have out preformed the common dates in all grades in the past and there is no fundamental reason for that to change in the future. The market for these scarce low mintage coins is driven by supply and demand and new collectors coming into the market should keep the demand strong and healthy.

I have been involved in the coin business for over twenty five
years. I buy and sell raw and certified coins by ANACS, ICG,
NGC, and PCGS. Please visit our site for good deals on coins. http://www.coinliquidations.com/