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I am often asked this one question that I believe is the key to any collector......I love to collect coins, but it can be very expensive collecting all the different types of coins. Any advice on "how to collect" strategies to build a collection I can be proud of without spending a fortune.
Here is my advice to any new collector, whether it be for coins or other items of interest.
1. Narrow down the area you like to collect to one specific type. For example, my coin passion is Indian Head Pennies. I have collected them since I was a kid, but as I realized I was spending a fortune on trying to collect both Mint State Indian Pennies and Proof Pennies. I decided to narrow down my collection to strictly Proof Indian Cents and more specifically Toned Proof Indian Cents. I now have an outstanding collection that I am proud of simply because I focused my dollars into this one area. When this collection is completed, I will then go after another area such as Toned Mint State Indian Head Cents.
2. Once you have narrowed down what you want to collect, get to know that area very well. This should include any key dates and what you can expect to pay for certain grades of coins. You can utilize various pricing matrix such as that found on pcgs.com or heritage.com to educate you on pricing. For example, if you like early commemoratives, your budget may only allow you to purchase Mint State 64 (MS64) and lower simply because of costs. Remember, the price difference between an MS64 (Choice) versus MS65 (Gem) can be significant, yet most people cannot tell the difference.
3. Now that you know the pricing of the coin you want, set a monthly budget to fund that coin(s). As most of us are on a limited coin budget, we have to "set aside" money to acquire the coin we want. The greatest pleasure you will have is the "hunt" to find that coin. And make sure when you find it, that it is the one you want. Too often people will settle for something less simply because they want to fill in the slot for that coin. Remember, your are not in a rush to buy anything. Make sure that each coin you buy is the one you definately want. I actually made the decision long ago, that I wanted to accumulate my "coin fund" and buy the higher grade (PR66 to PR67) proof toned Indian cents. This means for me that I may have to save up for many months before I can afford to buy one, but again, I love the hunt and window shopping. Many coin shops will allow you to hold a coin or make payments to them once you have found that gem that you want.
4. I recommend that any coin collector buy coins that have already been graded unless you have gone to a ANA grading class or have a reputable dealer that you can trust his assessment on the condition of the coin. I also recommend buying from one of the top grading companies like NGC or PCGS. When you are going to spend several hundred dollars on a coin, you don't want to find out later that it was overgraded. It has been my personal experience that too many of the second tier grading companies are not consistent in their grading and they typically over grade coins (ie. grade a Morgan Dollar MS66 when it really is a MS64). My position is why take the chance when you don't have too. If you buy a MS66 coin, than it better be a MS66 coin.
5. Frequent local coin shows. Get to know the coin dealers either within your town or at coin shows. Dealers love to talk about coins and can give you helpful advice on what to look for when looking at coins and what to watch out for. They can also help you look for certain coins that you may need to fill slots in your collection (especially key dates) and they will get to know your specific likes and dislikes about coins.
I have been following these steps for years. I still have not completed my Toned Proof Indian Cents collection yet, but I know I will some day. But until then, it is the fun of the hunt that I enjoy.
If you follow these simple five steps, you can develop a coin collection that you would be proud to own, but more importantly, have enjoyed putting together.
Here is my advice to any new collector, whether it be for coins or other items of interest.
1. Narrow down the area you like to collect to one specific type. For example, my coin passion is Indian Head Pennies. I have collected them since I was a kid, but as I realized I was spending a fortune on trying to collect both Mint State Indian Pennies and Proof Pennies. I decided to narrow down my collection to strictly Proof Indian Cents and more specifically Toned Proof Indian Cents. I now have an outstanding collection that I am proud of simply because I focused my dollars into this one area. When this collection is completed, I will then go after another area such as Toned Mint State Indian Head Cents.
2. Once you have narrowed down what you want to collect, get to know that area very well. This should include any key dates and what you can expect to pay for certain grades of coins. You can utilize various pricing matrix such as that found on pcgs.com or heritage.com to educate you on pricing. For example, if you like early commemoratives, your budget may only allow you to purchase Mint State 64 (MS64) and lower simply because of costs. Remember, the price difference between an MS64 (Choice) versus MS65 (Gem) can be significant, yet most people cannot tell the difference.
3. Now that you know the pricing of the coin you want, set a monthly budget to fund that coin(s). As most of us are on a limited coin budget, we have to "set aside" money to acquire the coin we want. The greatest pleasure you will have is the "hunt" to find that coin. And make sure when you find it, that it is the one you want. Too often people will settle for something less simply because they want to fill in the slot for that coin. Remember, your are not in a rush to buy anything. Make sure that each coin you buy is the one you definately want. I actually made the decision long ago, that I wanted to accumulate my "coin fund" and buy the higher grade (PR66 to PR67) proof toned Indian cents. This means for me that I may have to save up for many months before I can afford to buy one, but again, I love the hunt and window shopping. Many coin shops will allow you to hold a coin or make payments to them once you have found that gem that you want.
4. I recommend that any coin collector buy coins that have already been graded unless you have gone to a ANA grading class or have a reputable dealer that you can trust his assessment on the condition of the coin. I also recommend buying from one of the top grading companies like NGC or PCGS. When you are going to spend several hundred dollars on a coin, you don't want to find out later that it was overgraded. It has been my personal experience that too many of the second tier grading companies are not consistent in their grading and they typically over grade coins (ie. grade a Morgan Dollar MS66 when it really is a MS64). My position is why take the chance when you don't have too. If you buy a MS66 coin, than it better be a MS66 coin.
5. Frequent local coin shows. Get to know the coin dealers either within your town or at coin shows. Dealers love to talk about coins and can give you helpful advice on what to look for when looking at coins and what to watch out for. They can also help you look for certain coins that you may need to fill slots in your collection (especially key dates) and they will get to know your specific likes and dislikes about coins.
I have been following these steps for years. I still have not completed my Toned Proof Indian Cents collection yet, but I know I will some day. But until then, it is the fun of the hunt that I enjoy.
If you follow these simple five steps, you can develop a coin collection that you would be proud to own, but more importantly, have enjoyed putting together.
Guide created: 05/30/06 (updated 10/04/08)
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