Tips For The New Coin Collector

Are you new to coin collecting or want to start the hobby? If so, there are a few things that you should know in order to avoid making some of the same mistakes a lot of new collectors have made.

Tip #1: Don't Clean Your Coins

I tried to do this when I started out in the hobby. If the value of the coin partly depends on its condition, it seems logical that cleaning a coin will improve its condition and, in turn, its value. Don't make this mistake. There really isn't anything that you should do in order to clean the coin. Any attempt to do so can be seen by another collector with a good eye. It will not increase the coins value.

Tip #2: Handle the Coin by Its Edge

This one doesn't matter as much if the coin's been handled quite a bit before you got a hold of it. If the coin is uncirculated, however, you want to make sure that you put it in a plastic or mylar coin holder. If the coin is out of its case and you need to hold it, grab it by the edge of the coin. This will keep your fingerprints off of the face or obverse (tails side) of the coin.

Tip #3: Don't Pay Too Much For a Coin

Like anything, it's tough to know when you've paid too much for something... actually, it's tough to know beforehand that you'll pay too much for something -- it's usually pretty evident later when you've overpaid. It's tough to figure out the true value of a coin. There are monthly value sheets that you can subscribe to or find online. These are fairly good guides, but they aren't always the end-all, be-all.

Try to find out what price local and online dealers are selling (and buying) their coins. The more information you have, the better your chances of knowing a good deal when you see one.

Tip #4: Seek Out a Mentor

If you don't know any experienced coin collectors, seek some out. Befriend someone at a local coin auction or join a forum like www.CoinTalk.org. Bounce ideas off of them and learn as much as you can from them. Most numismatists love to share their knowledge to help those just starting the hobby.

Tip #5: Learn About Grading Coins

If you're going to be spending a lot of money for a coin or you want to make sure that there is little dispute over the value of a coin that you are wanting to invest in, make sure that you understand how coins are graded. You can read about different coin-grading methods at your local library or online. You don't have to be an expert, but it helps to know what to look for when shopping for a coin.

If you are buying directly from a dealer, make sure that they belong to a group like the Professional Numismatic Guild (PNG) so that you can be reasonably certain that they abide by a set code of ethics in their business.

If you are wanting some assurance that the condition of the coin is as stated by the dealer or the packaging, buy an encapsulated coin that has been graded by PCGS (Professional Coin Grading Service) or NGC (Numismatic Guaranty Corporation).

Collecting coins is a great hobby that combines art and history. It's an enjoyable hobby that you can share with others. The more you educate yourself about collecting coins, the more you'll ensure your chances of getting a good return on your investment and the more fun you'll have.