Coin collectors choose to collect coins for many various reasons. Some of them are personally interested in the designs of different coins and denominations and collect only for their personal enjoyment. Others aim to make a profit from their coin collection down the road. Coin collecting to make a profit is considerably more difficult than collecting for personal enjoyment. To make money on coins, one must be familiar with the grading of coins and which ones are more likely to be worth more.
- Skill level:
Take a class on coin grading. Counterfeiters often doctor, or manufacture, coins to trick non-savvy coin collectors into spending money on coins that are essentially worthless. Knowing how to grade coins yourself helps you to be able to detect these counterfeit and doctored coins. Grading is not a perfect art, but it can prevent you from making a costly mistake.
Research how many of a particular coin were minted. Older coins with fewer minted have a higher chance of being more heavily sought and, thus, worth more. Keep in mind that only a fraction of coins minted will still exist, as many coins are eventually recycled by the government into newer coins.
Purchase older coins. Older coins are more tried and true in their values. If you purchase newer so-called collector coins, there is no guarantee that their worth will increase. Older coins that are in good-to-excellent condition can fetch you a higher profit.
Compare prices. Seek out the lowest price you can find for a particular coin you are searching for. The biggest key to any investment is to buy low and sell high. Some people are unaware of the value of old coins and sell them for a price much lower than what they are worth. Find these people and you will get a higher return for your investment.
Invest in Australian coins. Of all the coins in the world, Australian coins are some of the most profitable. Australian coins minted between 1855 and 1858 are a good investment, as are the 1933 shilling, 1923 halfpenny and 1925 penny. Do your research on these coins, and buy them as low as you can.
Buy only graded coins. These coins are the most likely to be of good quality and not altered in any way. Remember that grading is in the eye of the beholder and not all professionals would give the same grade to each coin. However, purchasing higher-grade coins increases the likelihood of receiving a good return on your investment.
Consult a professional if in doubt. Sometimes a second opinion can aid you in making choices. You may feel that a coin is priced too high, and you will not make any money if you buy it. However, another investor or coin expert may have another take on the situation and give you his or her advice.
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