8 Common Mistakes Beginner Coin Collectors Should Avoid

 

There’s never a wrong time to start collecting coins. Coin collecting can be a lucrative endeavor if you make the right choices. If you’re just getting started with coin collecting, there are some common mistakes to avoid so you don’t regret your decision to collect rare, artistic, or ceremonial coins or the more commonplace gold, silver, or platinum options that tend to be more affordable. Below, we go over eight of the most common mistakes collectors make.

1. Getting Overwhelmed

It’s easy to get overwhelmed when you first do an online search. Just searching for gold and silver alone brings up many results. Don’t assume first page results are the best sellers. Do your homework and have a plan first so you’ll know where to start and how to refine your online searches.

2. Not Doing Your Research

The importance of getting a basic knowledge of coin collecting can’t be emphasized enough. Look for reliable resources like Numismatic Guaranty Corporation (NGC), Professional Coin Grading Service (PCGS), and sovereign or private mints around the globe. NGC and PCGS are the leading certification companies in the world, so you can trust the information they provide. For personalized advice on buying silver, platinum, palladium, or gold coins, Scottsdale beginner collectors can rely on the expertise of the professionals at First National Bullion.

3. Buying from TV Coin Dealers

Coin dealers advertise on TV all the time, so it’s tempting to use this convenient source as a way to start your collection. Before doing so, realize the prices include advertising and marketing fees. It’s often easier to get the same coins cheaper from an authorized dealer online or in person from a dealer.

 

Also, the coins shown on TV may look all nice and shiny, but you may not receive these coins in the same condition, even if they’re certified by NNC or PCGS. Lastly, the coins advertised on TV probably aren’t rare if they can be made readily available to thousands of customers at once via TV ads. Instead, do your own searching for coins that are meaningful to you.

4. Buying from Private Sellers

Individuals use online platforms such as eBay to offer a wide variety of coins for varying prices. Even if you find a good deal, it can be risky to purchase coins from private sellers. Leading collectors advise against this practice, even if the coins are said to be certified.

5. Taking Advice from Friends & Family

While they may mean well, it’s not a good idea to take advice from friends and relatives about hot coin deals. The only exception is if they happen to be coin experts or work for one of the two certification services mentioned above. Otherwise, it’s best to take such advice with a grain of salt. Instead, seek out experienced dealers and ask for their input.

6. Cleaning Coins

It’s tempting to clean old coins from the 19th or early 20th century if they’re tarnished or not looking all that great. However, cleaning coins takes away some of their natural charm and value. What’s referred to as a patina or coating is often prized by collectors.

7. Handling Your Coins Directly

You should always wear gloves when you handle coins. Oils from your skin can damage the coins or cause damage over time. Also, don’t remove your coins from the slabs they come in. Doing so can minimize their value. You can still display your coins in a special case—just leave the slabs in place.

8. Not Knowing the Difference between Low Mintage & Rare

Just because a coin is said to be low mintage doesn’t mean it’s rare or in demand. For instance, a gold coin commemorating the most recent Olympic games may be low mintage but not highly prized among collectors. Rare coins like the 1964 Kennedy half dollar are what’s really valued by collectors and buyers. 

 

Whether they’re looking to purchase silver bars or buy gold coins, Scottsdale collectors know they can trust the reliable professionals at First National Bullion. We can answer all your questions and help you find all the information you need to decide whether precious metals are the right investment for you. Give one of our experienced dealers a call today.

 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.