Advice for the novice and middle collectors

Bear

1. If you are like me and just average or a little better at grading

and spotting doctored coins, then for expensive coins 100 dollars

and up buy slabbed coins by the two top TPGs.


2. Develop a relationship with a circle of dealers that have stood the test of

time with you. They must always buy back coins that they have sold you, at

a fair price . They must advise you when they think that a coin is not right for

your collection. They must always describe a coin to you truthfully, warts and

all. They must charge you a fair mark up on nice coins. When you find several

dealers that meet these criteria, treat them like gold. Pay fast for your coins,

or tell the dealer in advance exactly when and how you will pay for the coin.

If the dealer is kind enough to send you a coin on approval, if you do not

like the coin, let the dealer know specifically why the coin did not meet with

your approval and be a sport and reimburse the dealer for their in shipping.

Thus, when you find a dealer(s) that treat you right, always treat them right

in return.


3. Put together a library of reference books, on the series of coins you collect.

knowledge of these coins will be well worth you time and effort. I do not know

If you will actually buy the book before you buy the coin, but buy the book as

soon as you can.


4. Keep good records on your coins. From who purchased, when, how much paid.


5. Over time, give thought to focusing on what you wish to collect, what grade

you prefer ,what appearance do you prefer the your coins to have.

(toned, white, in between, Circ, MS or PR)


6. Resist the impulse to buy everything you see. You will only end up with an accumulation

rather then a collection and it will be very hard to sell at anything near what you paid for it.




If any one has additional recommendations to make, please add them to this thread.

Moldnut

Words to live by

ldhair

Great advice.

Fairlaneman

This might not be very popular but I think number 2 is hogwash. Once a dealer, seller or whatever finds out that you are coming back to him constantly you are toast. When you try to sell back to him you are toast also because he knows what you paid for the item. Play the field and only buy nice coins at a nice price.

Number 4 is something I have never done. Once you buy the coin the money is gone and when it comes time to sell the market of buyers will determine what the coin is worth. I guess if you want to keep tab of gains or losses you could keep records outside of that why waste the time?

Ken

breakdown

4 makes a lot of sense to me. How else are you establishing a basis when it comes tax time?

I like 2 a lot, as well.

Great words of wisdom, Bear. I might add, Know your limitations and do not overestimate your ability as a grader.

collegecoincollector

If I live to the average age of 75-80, that will be a minimum of 55 more years of collecting. It seems that experience is what helps the most in the hobby, second is perserverance and third is patience. I think those three words are very similar to the above points.

InternetJunky

Very good advice. I'll admit I did #6 the first few months of collecting - BIG mistake. When it came time to sell I got about half of what I paid - sometimes even less

JBN

Sage advice.

It is an amazing leap of faith that dealers send me coins on approval. I've always appreciated it - both for the convenience and because it shows a level of trust. For my part, I do always return payment ASAP.

My biggest problem is number 6. I'm getting better at it, but still have the occasional 're-lapse'. There is so, so much candy out there.

TwoSides2aCoin

If a coin won't give you potential profit when selling, don't buy it. If it won't bring you pleasure owning it, don't collect it. If it brings any negative aspect to your life, run from it. I learned my lesson after hoarding for years. Nothing made me so sick as holding "stuff" I didn't even like.
To dealers it as a commodity (and that's all it is), and if you're a pack rat, search out the best stuff and haul the rest off to a dealer. Trade up to gold or platinum or a higher graded classic worth having.

Excuse my straightforward thinking.

COALPORTER

Expensive coin = $100 ? No one wants to waste 100 bucks, but at that level coins are barely worth slabbing. I start worring at a grand or so.

mattniss

Great advice from a wise Bear!