Options
Advice for beginners
hchcoin
Posts: 4,825 ✭✭✭✭✭
Things I have learned or read from others over the years:
1. Knowledge - Invest in good reference books and use them. The cost of the books is tiny compared to the cost of mistakes because of ignorance.
2. People - Get to know other collectors and dealers so you can learn from them. Books are great but getting to know other like minded collectors will open up your eyes way more than any book can. Don't be a hermit.
3. Trading/Selling - Don't trade/sell unless you understand the value of what you have. There is no worse feeling than selling something only to find out it was rare and valuable after the fact.
4. Shows/Auctions- You can learn more from going to big shows than you ever could buying and selling off eBay. There is no substitute for seeing first hand what really great coins look like in person. If you have never been to a big show with a big auction, you don't know what you are missing.
5. Buying - It may seem fun to buy 10 coins for $10 each but you would be better off to buy only one great coin for $100. Stretch for a great coin and it will hold its value. When it comes time to sell, it will be much easier selling the one great coin than 10 average or junk coins.
6. Cleaning - Don't do it. If you can't help yourself, clean one of those junk coins mentioned above to learn what you are doing or better yet, get some help from someone who knows what they are doing.
1. Knowledge - Invest in good reference books and use them. The cost of the books is tiny compared to the cost of mistakes because of ignorance.
2. People - Get to know other collectors and dealers so you can learn from them. Books are great but getting to know other like minded collectors will open up your eyes way more than any book can. Don't be a hermit.
3. Trading/Selling - Don't trade/sell unless you understand the value of what you have. There is no worse feeling than selling something only to find out it was rare and valuable after the fact.
4. Shows/Auctions- You can learn more from going to big shows than you ever could buying and selling off eBay. There is no substitute for seeing first hand what really great coins look like in person. If you have never been to a big show with a big auction, you don't know what you are missing.
5. Buying - It may seem fun to buy 10 coins for $10 each but you would be better off to buy only one great coin for $100. Stretch for a great coin and it will hold its value. When it comes time to sell, it will be much easier selling the one great coin than 10 average or junk coins.
6. Cleaning - Don't do it. If you can't help yourself, clean one of those junk coins mentioned above to learn what you are doing or better yet, get some help from someone who knows what they are doing.
0
Comments
"A dog breaks your heart only one time and that is when they pass on". Unknown
If you collect coins for fun, then have fun buying 10 coins for $10 each.
If you collect coins because you are worried about resale, then maybe "fun" is not your objective for collecting.
Have fun ... it's a hobby!
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
Add "7. Join a local Coin Collecting Club and join the ANA." It took me 40+ years of collecting before I finally joined the ANA. I should have joined decades ago.
How much does it cost to join? Is it really worth it?
Successful transactions with: wondercoin, Tetromibi, PerryHall, PlatinumDuck, JohnMaben/Pegasus Coin & Jewelry, CoinFlip, and coinlieutenant.
I don't agree with #5.
If you collect coins for fun, then have fun buying 10 coins for $10 each.
If you collect coins because you are worried about resale, then maybe "fun" is not your objective for collecting.
Have fun ... it's a hobby!
Good point. I have a hard time following #5 myself. Just passing along the wisdom I have been told by collectors much wiser than me.
4. Shows/Auctions- You can learn more from going to big shows than you ever could buying and selling off eBay. There is no substitute for seeing first hand what really great coins look like in person. If you have never been to a big show with a big auction, you don't know what you are missing.
Well I completely disagree with this one.
Buying and selling on eBay will teach you the hard knocks of the coin market as well as intense knowledge of your your area of interest.
I built a coin business thanks to eBay.
4. Shows/Auctions- You can learn more from going to big shows than you ever could buying and selling off eBay. There is no substitute for seeing first hand what really great coins look like in person. If you have never been to a big show with a big auction, you don't know what you are missing.
Well I completely disagree with this one.
Buying and selling on eBay will teach you the hard knocks of the coin market as well as intense knowledge of your your area of interest.
I built a coin business thanks to eBay.
I can see your point and think eBay and the internet has been a game changer. Have you been to a national show with a premiere auction? It sure is nice to see all those great coins case after case and row after row. In addition, you can spend hours in the auction viewing room examining coins that may be out of your comfort zone.
Maybe you wouldn't have had so many hard knocks if you had gone to more national shows before building your coin business on eBay
I don't agree with #5.
If you collect coins for fun, then have fun buying 10 coins for $10 each.
If you collect coins because you are worried about resale, then maybe "fun" is not your objective for collecting.
Have fun ... it's a hobby!
Yes, but if one gets more excited looking at the $100 coin than at the ten $10 coins, then shouldn't they buy the single piece? (Remember the "fun"issue.)
Of course, most people have a price limit and comfort level so there are limits. But if one really has heart palpations while considering the purchase of a single $100 coin, then should they be spending money on a luxury item any way?
Please don't criticize me for what may seem to some to be an elitist statement. But think about it!
5. Buying - It may seem fun to buy 10 coins for $10 each but you would be better off to buy only one great coin for $100. Stretch for a great coin and it will hold its value. When it comes time to sell, it will be much easier selling the one great coin than 10 average or junk coins.
I'm sorry but this sentiment is one which I always disagree with and makes zero sense IMO. It's in the same vein as "buy the best you can afford". It is inherently illogical.
For some, they might be comfortable buying 10 $100 coins but should buy 1 $1,000 coin. And of course, for those that can afford 10 $1,000 coins, they might as well just buy 1 $10,000 coin and so on and so on.
Basically, in the end, one can only draw the logical conclusion that all coins are NOT worth buying except for uber expensive rarities.
If you don't buy into that notion, then all coins should be worth buying whether they are $1 coins or $1 million coins. Unless you feel there is a certain arbitrary number at which "worthwhile" coins should be bought. In which case I'd love to hear what that number is and why.
#5 is totally legitimate and wise advice, but obviously, even any good advice, if taken to the logical extreme (as above) can become poor advice.
The idea behind this concept is that for any given set your are collecting, you should decide on an optimal grade to collect. And, since you are investing both your time and hard earned money, whether you end up with a bunch of "stuff" (or worse) or something that can be appreciated by others and an accomplishment in which you can take some pride, is certainly a worthwhile goal.
Obviously, everyone's budget and goals are different. But, after paying out real money for what some might see as mere "pocket change," you would like to have something to show for it. Maybe that isn't a set of MS67 FH, FS or FBs, but some pq quality 64s, 65s or 66s will look basically as nice and have willing buyers when the time comes to sell (which it does for all of us, eventually).
And, #10... buying rarity first, then the common stuff, will make perfect sense 10, 15, 20 or more years down the road. The price increases for rare stuff (assuming problem free) has always outpaced the common stuff (and inflation) - which means if you wait to buy that key or semi key, you may not be able to (or complete your set). The common stuff will still be that and available.
Add "7. Join a local Coin Collecting Club and join the ANA." It took me 40+ years of collecting before I finally joined the ANA. I should have joined decades ago.
Joining a good local club is more important than the ANA. You will learn far more from knowledge collectors than you will from the ANA.
You're merely drawing arbitrary lines of MS64 or whatever, probably based on what you find suitable based on your own budget. If you were much richer, I'm sure you're line would be drawn much higher. Wouldn't buying MS64, even if you were Bill Gates, still be a worthwhile pursuit though??? And what about all the collectors who may not afford an MS64 set or whatever you deem acceptable, should they not even bother to collect that particular series?
I'm with you in this "fight"....
But I also see where the other side is coming from. "Don't buy low just because they are cheap. In the long term, it's a false savings".
That said, I would re-word the whole advice to something more like:
"Set your own goals based on YOUR desires and YOUR price comfort level. Don't buy beyond your means, but at the same time, don't settle for less than you could attain, just to save a few bucks."
There are "serious" collectors at all levels of the hobby...so do yourself a favor and BE serious! And don't let anyone demean your level just because their level is higher, (or lower).
Add "7. Join a local Coin Collecting Club and join the ANA." It took me 40+ years of collecting before I finally joined the ANA. I should have joined decades ago.
Joining a good local club is more important than the ANA. You will learn far more from knowledge collectors than you will from the ANA.
+1, the keyword is a "good" local coin club
I don't agree with #5.
If you collect coins for fun, then have fun buying 10 coins for $10 each.
If you collect coins because you are worried about resale, then maybe "fun" is not your objective for collecting.
Have fun ... it's a hobby!
Yes, but if one gets more excited looking at the $100 coin than at the ten $10 coins, then shouldn't they buy the single piece? (Remember the "fun"issue.)
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
I don't agree with #5.
If you collect coins for fun, then have fun buying 10 coins for $10 each.
If you collect coins because you are worried about resale, then maybe "fun" is not your objective for collecting.
Have fun ... it's a hobby!
I agree with you. Buy what you enjoy. Collecting should be fun.
You're merely drawing arbitrary lines of MS64 or whatever, probably based on what you find suitable based on your own budget. If you were much richer, I'm sure you're line would be drawn much higher. Wouldn't buying MS64, even if you were Bill Gates, still be a worthwhile pursuit though??? And what about all the collectors who may not afford an MS64 set or whatever you deem acceptable, should they not even bother to collect that particular series?
I did not mean to suggest literally that MS64 was some "line" that should be a minimum ( or any line at all). It could be a nice Fine or AU. It will all depend on your budget and your goals.
But, the original example of using $100 to buy 10 coins vs. 1 nicer coin holds true. Doing anything well takes time.
Things I have learned or read from others over the years:
5. Buying - It may seem fun to buy 10 coins for $10 each but you would be better off to buy only one great coin for $100. Stretch for a great coin and it will hold its value. When it comes time to sell, it will be much easier selling the one great coin than 10 average or junk coins.
I would not say this is a rule. Don't believe the hype...you can lose lose just as much if not A LOT more money by stretching for coins. Been there and done that!
In fact, I've started a 50 under $50 coin showcase to show people that you don't have to spend a lot of money on nice looking, enjoyable to own coins.
Below is one I paid $48 for, and it also got CAC stickered (I had some credit at CAC so I sent it in). The last similar type coin I bought, I later sold for more than 2x what I paid.
Net-net, I might actually encourage the opposite, when you are just starting out. Minimize your risk and stay away from high priced coins...train your eye and your ability to negotiate/be patient on smaller prices items and graduate to more costly items when you feel more confident.
Add "7. Join a local Coin Collecting Club and join the ANA." It took me 40+ years of collecting before I finally joined the ANA. I should have joined decades ago.
How much does it cost to join? Is it really worth it?
As a function of what you will learn and how much you will spend on coins and/or save on coins, it is invaluable. So, yes, it is really, really worth it in my opinion.
I began collecting in 1997 as an middle aged man, having collected as a child. I almost immediately joined the ANA and then shortly thereafter attended a grading course, to be followed by many more courses. The ANA publications and library are very helpful. The courses are invaluable. If you want to learn and minimize mistakes (and you will make mistakes), learn from the experts, many of whom congregate at Colorado Springs for 2 weeks during the summer. The amount that you will learn will amaze you. But also you will meet many numismatic experts of high integrity and that will serve you in the long run.
Tom
A. Collect for fun.
B. Collect what you like, when you want.
C. Use the hobby to learn; this just seems to come naturally.
D. Don't expect to get rich collecting. It can be done but requires a lot of work and skill.
I will say this. Selling nice coins for the grade is much easier and you get a much better price than selling below average or problem coins. That is the intent of #5. It is trying to help the impulsive, inexperienced buyer realize that there is almost always another coin and if you strive to buy above average coins, you will be better off when selling the collection (or when your heirs sell) plus they are nicer to look at. Generally, you are going to have to pay above or at the price guides to buy these types of coins from dealers. Usually, the inexperienced beginner will look at a below average coin and compare it to the price guides and buy it because they think they are getting a bargain only to find out later that they bought a problem.
Mercurydimeguy gave a great example of a ultra nice buffalo that could be had for under $50. The problem is that the inexperienced beginner may not have the patience or knowledge to find that coin. More than likely, they will buy quantity over quality because it is cheap compared to published prices. They only realize down the road when they gain more experience, show it to an experienced collector, or try to sell it that they would have been better off buying the nicer coin for the grade.
I wonder how many collectors have coins from when they first started collecting that they wish they could return for a full refund now that they know what a nice coin for the grade is.
So, with that in mind, I still think it is better to buy a nice $100 coin rather than ten problem or below average coins for $10 each. In no way am I saying you can't find nice $10 coins. If that were true, I wouldn't have most of my collection
It doesn't really matter what you buy, it is what you paid for it vs what you could resell it for.
You specifically brought up the matter of resale and "willing buyers" when it comes time to sell. Once again, your budget may be $100, but if mine is $1,000, then you are inherently admitting that the coins you buy aren't worth buying at all. And if xyz collector has a $10,000 budget for supposedly worthwhile coins, then his doing himself a disservice buying $1,000 coins and why should I even bother buying if reselling is a serious goal, which it is for most collectors, even if they protest otherwise. Most "diehard" collectors would not pay $50 or $1000 per coin if they knew for sure it could not be resold or have some store of value.
Wow. Interesting extrapolation, but one that is neither "inherent" nor implicit in what was stated (nor even logical). But, I think you are just having fun with this, while acknowledging the truth that a nice problem free coin in a grade that is appealing to a number of potential future collectors is a much smarter buy than a bunch of "stuff."
And, hchcoin said it quite well.
OK, I'll tackle #5
It doesn't really matter what you buy, it is what you paid for it vs what you could resell it for.
OK, I'll tackle #5
It doesn't really matter what you buy, it is what you paid for it vs what you could resell it for.