DOs and DON'Ts of Coin Collecting

[Market Harmony]

Coin collecting and bullion investing typically go hand in hand. A bullion collector may start into coin collecting by first filling a blue Whitman album with all of the Roosevelt Dimes or Washington Quarters that he/she buys for bullion content. Pretty soon, that "bullion" collector wants to upgrade the appearance of the collection and will begin to purchase coins for more than just the metal for which they contain. This "Whitman Bingo" is the typical path of advancement into the hobby of kings from being a bullion investor. On the other hand, coin collectors can also turn to bullion as an expansion of their investment or collection. For both parties, there are lessons to learn and a quick guide will help to avoid mistakes.

DOs:
1) Buy the book before the coin- Educating yourself on a purchase will ensure that you know what you are buying when you buy it
2) Collect coins that you personally like. This can be anything from a particular series, denomination, appearance, or rarity.
3) Buy the best coin that you can afford- one $100 coin is better than three $33 coins
4) Buy from reputable dealers and ask if they offer a return policy
5) If you are buying raw coins (not in a professionally graded slab), then it is a requirement that you know how to grade that coin. If you are unsure, then try to get another opinion. Also, determining whether a coin has been cleaned is paramount to ensuring a fair deal. This is a skill which needs to be honed. Helpful tools include a high intensity light and a jewelers loupe which can be 5X, 7X, 10X and higher magnification.
6) Determine for yourself a minimum price for which you will require a coin to be slabbed when you buy it. Key date coins sell better when they are professionally graded. If you pay several hundred dollars for a raw coin in a certain grade, then be sure that you agree with the grade. One grade can mean a big difference in price.
6) If you are buying a professionally graded coin, then be sure that it is from a respected third party grading service (TPG). These include, but are not limited to, PCGS, NGC, ANACS, & ICG. There are some TPG's which should be avoided.
7) Price is last part in any deal. Be sure to use reliable sources for price ranges. Nearly every dealer uses the Greysheet, and collectors typically carry a Red Book. There are online resources, such as Numismedia- http://numismedia.com/fmv/fmv.shtml

DON'Ts:
1) Clean coins- NEVER EVER EVER clean a coin. Just let it go. If you don't like the way it looks, then don't buy it. Cleaning seriously diminishes the value of a coin. Cleaning will never increase the value of a coin.
2) Buy on impulse- The coin that you are looking at will most likely be seen again. Some things are best to wait on, and only the rarest stuff is worth buying when you first see it. Leave the quick buying and selling to the dealers. Buyer's remorse is worse than any regret you might have from not spending your money
3) Mistrust your instincts- If something seems too good to be true, then it probably is
4) Take someone else's word on a coin. (see DOs point 1 above)

Feel free to post more DOs and DON'Ts of your own and I will update this post. Also, feel free to tell us a story that others may find entertaining or enlightening.

[Rodebaugh]

Pretty Solid. Nice work.

One extra Do that I live by: If it is valued at $500 or more only buy/own it certifed. Raw is to risky at these ranges. Let the 3rd party grading Co eat the mistake if there is one.

[Market Harmony]

Pretty Solid. Nice work.

One extra Do that I live by: If it is valued at $500 or more only buy/own it certifed. Raw is to risky at these ranges. Let the 3rd party grading Co eat the mistake if there is one.

Good point! It's one that I advocate as well. I also take it to a different level... if the coin is not a key or if there isn't much of a jump in price between grades, then a coin valued at $300 is the minimum before considering to send a coin off to be slabbed.

[socaldsal]

DO collect what you enjoy collecting. It's your money, your enjoyment. I was pushed in to buffalo nickels, and while I won't turn a really good one down, I don't actively look for them because they're simply not my thing.

DO research. It prevents getting burned. On some coins the jump in grades from MS 63 to MS 65 can mean a lot of money. It definitely helps to recognize when a coin that is VF at best is being passed off as BU.

DON'T buy with the sole intent of making money if you are just starting. Many things can go wrong and you may end up losing money overreaching for "that coin" on places like ebay. See the second DO I listed above before getting in to selling for some profit. Chances are very high (99.99%)that the guy savvy enough to sell online is no fool and has done serious research.

DON'T believe every "found them in my grandma's closet jar" story you see at online sales outlets. See the last sentence of the last DON'T I put up there. The guy that didn't know what they were either spent them (check your change), or just got finished selling them off at a discount at your local brick and mortar shop or coin show.

All I can add.

[just carl]

Pending on if you are a serious collector or just want to have a hobby for FUN. The rules are really different.
Don't Listen to anyone. Do what you want, when you want, how you want. Either buy an Album or just a place to put your coins. Have fun looking for what you want, wherever you may find them.
Don't Listen to those that scream you have to have the best graded ones. If you want a lousy looking coin, get it. You'll enjoy your coins more if you don't have to worry about them. Sort of like having a car that is so great looking you can't drive it without worrying about the first crash.
Don't run out and buy coins if you can find cheaper methods such as rolls, bags from a bank, neighbors old jars or cans of coins. Also, try relatives, garage/yard/estate sales too.
Don't try coin stores unless you plan on spending way more than a coin is worth. Try to find a few used coin books with information so you can know what your doing, if your really interested, that is.
Remeber that with 300,000,000 people in the USA and possibly 10% or many times more, there are many, many coins you will never find in circulation, at a coin store, coin show or anywhere. So get sort of used to such coins as the 1909S VDB Lincoln Cent being something that would cost to much for a general hobbiest of coins.
There are many, many rules, guides, books, magazines, web sites, etc. for those that take this hobby seriously. Think about how many of the millions that start this hobby and then abandon it due to many, many reasons. One is loss of enjoyment. This should be a hobby for FUN. Try to have fun and you'll enjoy coins much, much more.

[RickS]

So individual coin storage...(not talking safes here)

Are the 2x2 cardboard holders the standard? Up to what "amount"/value before the hard plastic slabs come into the picture? Or is that normally left for the professionally graded coins?

-Rick

[abe]

So individual coin storage...(not talking safes here)

Are the 2x2 cardboard holders the standard? Up to what "amount"/value before the hard plastic slabs come into the picture? Or is that normally left for the professionally graded coins?

-Rick

I have hundreds of coins stored in 2x2 cardboard holders and many more in 2x2hard plastic holders. I believe it was the older cardboard holders is where alot of pvc contaminated the coins. Airtite holders are very safe for coins. Most collectors like using the TPG's for grading and authentication. If you have valuable or key date coins you may want to consider having it done, but I find it expensive and time consuming. The best thig to do is educate yourself on grading and counterfeit detection, you can save yourself a bundle. Certified coins do sell better especially key dates or highly counterfeited coins.

[exbingoaddict]

Great post MH. Words of wisdom for every collector.

#3) Do is key to many new collectors. I.e. buy the best coin you can afford. That's second only to don't overpay. Quality over quantity.

That idea was reinforced after watching somebody sort out somebody's lifetime collection they purchased. Their collection spanned from proof sets to early gold to indian head cents. The guy was an accumulator. Which is fine if thats what you want to do. My thoughts were, I would have traded the hoard for a for a 20 coin TGP case of high end coins. Different strokes for different folks though. Just know what you're doing.

[just carl]

So individual coin storage...(not talking safes here)

Are the 2x2 cardboard holders the standard? Up to what "amount"/value before the hard plastic slabs come into the picture? Or is that normally left for the professionally graded coins?

-Rick

Although most collectors use the 2x2 size cardboard flips, if you go to coin shows or coin stores, you would notice that most dealers use the 1-1/2x1-1/2 inch size flips due to room. There are also larger 2-1/2x2-1/2 inch sizes of cardboard flips. Another thing is most dealers use glass enclosed cases with numerous slotted boards that hold the smaller sized flips. They are usually cheaper and take up less room.
As to sealing them, again most, not all, people use a stapler. Some place 3 staples on the sides that open. Some get carried away with 4 staples. Some use a special stapler that allows the staples to flatten, some use a pair of pliers to flatten the staples and some do none of those. Most dealers at coin shows use those except for the encased by a TPGS in plastic.
At most coin shows you can purchase the 2x2's for anywhere from $2 to $4.50 a box of 100. At most coin shows if you purchase them loose, not in a box, they are much cheaper. At coin shows and coin stores they sell Red or Black Cardboard boxes made by Whitman Publishing that hold either one or two rows of 2x2's. Those too sell for about $3 to $5 each.
Note also that flips also come in plastic and some dealers use them since it makes the coins appear more valuable. And naturally the price of the coins is usually higher to pay for those.
I have 9 of those 2 row boxes full of 2x2's with duplicate coins not yet ready for an Album. I tape the ends shut instead of using a stapler. Safer, easier to use, easier to open, cheaper than staples.
And again, seldom listen to people that tell you how to enjoy a hobby. Always remember a hobby is for fun and if you start going after what someone else tells you to do, you'll never really enjoy this or any hobby.