Hobbies And Interests
Things You'll Need
Instructions
Choose a theme. Building a successful collection from scratch can be daunting; however, if you begin with an end in mind, this will help you in selecting the first coins to pursue. A theme might be silver and gold coins from the early post-Revolutionary era to the end of the 18th century. Or, it might be gold dollar coins, or coins from territories before they were annexed into the U.S. The theme will help you in deciding what sorts of coins to purchase, and it will help you complete a niche collection in a shorter amount of time, which will increase the value of the overall investment.
Find an expert to value the coins. This will be easier once you've determined the niche, as you can consult expert dealers of this niche, or other collectors. You can also use online resources, such as the Professional Coin Grading Service's (PCGS) Internet database, which sorts coins by category and offers current-day values for the types of coins they've graded. Knowing the value before you make a purchase will help you when it comes time to make the transaction, especially if it is an in-person transaction.
Find a reputable coin dealer. Again, it helps if the dealer is known for dealing coins that fall within the theme you've chosen. The most important thing, though, is that this dealer has a good reputation. Ask other collectors whom you trust about dealers if you can. Also, being in business for a long time is usually a good sign.
There is also a valuable resource called the Professional Numismatists Guild (PNG), which certifies coin dealers. The average PNG dealer has more than 25 years of experience, according to the PNG website.
Verify the authenticity of the coin. There are a few coin grading services that offer certificates of authenticity. One well-known coin grading service is called the Independent Coin Graders. If the coin is authentic, the dealer should have an original certificate from the coin grading service that he will pass to you upon purchase so that you can, in turn, prove the authenticity to others.
Purchase the coin. If this is an in-person purchase, the transaction is fairly simple. If you are buying online and having the coin shipped, make sure that you or the dealer pays for shipping insurance to protect the investment. It's also a good idea to have the coin shipped to a secure P.O. box, or require signing upon delivery.
Preserve the coins. You should keep collectible coins in what's called a coin album, which not only acts as a nice display, but prevents the coin from being damaged. Mint-condition coins are often sold in plastic coin holders. It is best to keep the coin in the display if you want to avoid scratches and preserve the full value.
According to the ICG, there are eight factors affecting the overall grade (and, in the end, value) of a coin: luster, contact marks, strike, color, toning, friction, die cast flaws, and obverse grain consolidation (see: ref. 3). Some of these are beyond the control of the collector, but you should do the best to preserve the condition in which you received the coin so as not to lower the grade.
Store the coins in a secure place. The coin collection will grow in value with each coin you add, so it's important to keep it in a place that is safe from robbery. An at-home safe might be a good choice, as it will still afford you the opportunity to show the collection to visitors. For extremely rare and valuable coins, a safety deposit box might be most prudent.