Losing Money Investing In United States Coins
Don't Take Any Wooden Nickles
OK so you've decided on a series to collect and a date range. Your grade is the next step. Make sure that the hardest coins, or highest priced ones that you need to complete the set, are going to be within your financial capabilities.
If you are collecting and building a type set, then the most expensive varieties should be obtained first. The highest grades of these key dates should be obtained that can be afforded within your budget. After the hard holes are filled, so to speak, the rest is easy.
Caution must be used when investing in this area. Ones that have been cleaned are worthless and it can be very hard to detect if some unscrupulous dealer or collector has whizzed the coin. This is chemical dipping that actually removes a layer of the base metal the coin is made from. Once this has occurred on a coin the coin is destroyed and holds no further value.
Counterfeits are another way that the layman can get burned. I recommend that any coin worth over a hundred dollars be certified right away. Make sure the person you're purchasing from understands that you are going to submit the coin for certification and that if it doesn't come back at least the grade they are calling it, then you'll be returning it for your money back.
If the seller refuses this arrangement, then they may know something more then they are letting on about the coin. Use your best judgement when buying because raw coins is where you'll find the best potential for profit; they are however the most dangerous area to buy in.
Over graded coins can also cost you a great deal of money. Many dealers will advertise an uncirculated coin when they are actually selling one that is almost uncirculated. When we're talking about investment grade coins this can be a difference of thousands, if not hundreds of thousands, of dollars.
Amazon Price: Buy Now
(price as of Mar 6, 2016)
Which Coins To Buy To Earn Money Today
Where's The Beef In The Market
Knowing which areas to invest in within United States numismatics is information that is time relevant. In other words, what is right to buy today could be the wrong ones tomorrow. The market is a fickle one and constant attention must be paid to avoid entering the wrong area at the wrong time.
After developing a fondness for one type of coin, this is just what happens with research, you'll need to look up trends for that type. See how it's done historically and what the upside potential may be will emerge.
If the coin has short runs and low mintages, but you feel it is under priced in the auctions you've been seeing, then this may be a coin of interest that will achieve your goals of selling for more then you pay for it.
How much you make on any investment will be decided by its rarity and the public demand for the item. It will matter how many others are for sale of the same type and grade. Are the competition coins getting what you want when you sell? If not then you need to move on and find another area.
Copper coins offer a lot more uneducated sellers. The precious metal in gold and silver coins alert the average Joe to what he has. The subtle copper large cents and half cents hold mystery to many. Learning about the early issues of these types can offer a lot of areas to make a tidy profit.
eBay is always the best place for the money to do research - it's free so how can you beat that? Take some time both before and after you decide on a series to do research before you buy. Then use this service to decide how to set your prices when you sell. The information available from that site can help you assure a profit if you analyze it properly.
Uncirculated coins have to be the most attractive area of the market. Better still are those that are certified uncirculated. These are examples of obsolete coins that have undergone a scrupulous process and been assigned a grade and authenticated as real United States coins. Reselling this type of item is easy and the price you can get is a known variable if you've researched the item on eBay.
Again, base metal coins as opposed to precious metals. Certified coins are better than the raw ones for security reasons, but raw offers the best potential for a huge profit. Buying a certified coin usually means you're dealing with someone in the know as opposed to the average Joe selling that cup of weird coins they found over the years.
Amazon Price: $34.50 Buy Now
(price as of Mar 6, 2016)