Monday, November 4, 2013

5 Mistakes Coin Collectors Make

Beginner Coin Collecting Tips, Rare Coin Collectors Guide

Beginner Coin Collecting Tips: Avoid These 5 Mistakes

When one takes on any new endeavor, there are many early obstacles to watch out for and coin collecting is no different. For the veteran coin collector, some of these mistakes may seem obvious, but only because they’ve learned through trial and error. You don’t have to make the same mistakes we did! At U.S. State Quarters, we want new coin enthusiasts to avoid early setbacks and get their coin collection in full swing in no time.

The purpose of the rare coin collector’s guide below is to make you aware of the five most common mistakes beginner coin collectors make – and how you can avoid them.

Paying More than You Should

Often, numismatic coin vendors will list items at more than they are worth, banking on the naivety of collectors who will gladly pay the asking price. How to avoid this mistake: Do some research on the merchant and the coin before you spend big bucks. The latest version of the Official Red Book is a great resource in determining the value of collectible coins.

Purchasing Sets that Don’t Contain Silver

Although they may be silver in color, not all coin sets contain actual silver. Many new coin enthusiasts purchase sets unaware that there is more to them than meets the eye. How to avoid this mistake: Since the early 1990s, silver proof sets have come in boxes that are red or black and state that the set contains silver.

Purchasing Ungraded Coins

The value of a coin is heavily dependent upon its condition. Many coins that look nice from the outset are in fact poor in quality. Many beginners, judging a coin by its appearance, are deceived. How to avoid this mistake: Buy coins from companies that have a good reputation within the community. Additionally, when purchasing expensive coins, try to buy ones that have been graded by professional organizations such as the PCGS, the Professional Coin Grading Service, or the NGC, Numismatic Guaranty Corporation, if possible.

Focusing Only on Proofs

Proofs are essential to any coin collection because of their authenticity and, as they are often encased, their shiny, well-kept appearance. However, it’s a mistake to think that proofs are always the best investment. Raw uncirculated coins are ideal for capitalizing on increases in the cost of silver and gold. How to avoid this mistake: Have a balanced collection that features both proofs and uncirculated coins.

Buying the Latest Coin

Many coins, when they are first released, are in high demand and therefore at their most expensive. It is easy to get carried away by the hype and pay more than you need to for the latest coin. How to avoid this mistake: Wait until the buzz has died down a little before making a purchase.

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U.S. State Quarters has been serving the online community of rare and U.S. coin collectors for 15 years. We are happy to share our expertise with fellow coin collectors new and old. Subscribe to our blog to keep up with the latest news from the numismatic community as well as more tips on coin collecting for beginners. You may also contact us with any questions or concerns you have about your collection.

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