Collecting Coins

[PAPPY]

Coin collections fall into two categories--those done for the fun of it and those undertaken by collector-investors who mix value with the fun.
Collectors who are only looking for a pleasant hobby usually restrict themselves to inexpensive coins, Basic procedure: Obtain the standard books and buy albums in which to mount the coin purchases. Join clubs and attend shows to build up expertise at your leisure.

Collector-investors approach their coins with a higher level of commitment. Main difference: They spend significant amounts of money in the hope of reaping financial rewards.

SALIENT FACTS

The market for US Treasury-minted coins was once fairly steady since only collectors bought and sold. But starting in the mid-1960's, noncollecting investors began to move cash in and out of the market, buying and selling coins as speculative investments much as they might stocks and bonds. The injection of volatile money transformed a relatively steady market into one of cycles, with booms and busts. Speculation increases demand for investment grade coins, which makes those that are extant more and more valuable.

Experienced collector-Investors and dealers often use their expertise to take advantage of the novice investor. Result: Thousands of new collectors find that they are stuck with inexpensive junk when it is time to sell.

HOW TO AVOID BEING SKINNED
Study well before making major money investments.
There are a number of books about each major US coin series. These volumes discuss the historical background of the coins. Examples: How well the coins were struck and the condition of the dyes when the coins were made. The rare and common years for the coins and dozens of varations that often give values for the coins, but these are usually out of date. For the latest figures, consult the coin collectors newsletters. Point: Learn all you can about a coin before investing. This background knowledge helps keep you from being cheated by a fast-talking dealer.

LEARN FROM DEALERS
Get acquainted with several to gain a sense of them as people. Be alert to their willingness to protect beginners from their own errors.

DO NOT DEPEND ON THE ADVICE OF DEALERS FOR LONG
To wean yourself away, spend lots of time at coin shows and auctions. Learn to identify and grade individual coins and note their sale prices. Subscribe to and study the literature read by professionals.

CRUCIAL ADVICE
Sell part of your collection every year. This shows you whether or not you knew what you were doing when you bought.

WHAT TO SELL
Duplicates for which you have better samples. Coins from periods that no longer interest you. Samples that have lost their fascination.
Why should you start or rebuild a collection now? In the late 1970's and into 1980, a major speculative boom shot prices far beyond sustainable levels. After some panic selling, many paper profits disappeared. Now the market is pretty well cleared of all excess pricing. The boom drove away many novice and casual collectors as prices soared. But these people started drifting back into the marketplace as coins became more affordable.

PRESERVATION
The value of a coin does not depend entirely on the market cycle. It can drop rapidly from poor handling or cleaning, or even from coughing on the coin. BEST: Check with dealers and consult literature on the best methods of preservation. AVIOD: Plastic holders made from polyvinyl chloride (PVC). This material breaks down with time and releases and oil that oxidizes the copper in coins, turning them green and oily. NOTE: Although damaged coins can be cleaned, they never look the same to an experienced eye.

[Buster]

Good info Pappy...Thanks....Buster...........

[anne]

Sound advice Pappy

[homefire]

Thank you for the advise Pappy!

[schoser]

very good,sir .thanks !

[Lt1stone]

Good info!

[Dugday]

Thanks for the info!

[Zman]

Thank you Pappy, great info.