Tips to Buying Rare Coins

Before starting to buy a rare coin, you have to learn the knowledge of how coins were minted, what types of coins were issued, which coins had not been circulated etc. In other words, you need to really know the inside out of coins to avoid yourself end up buying overvalued rare coins.

Here are some tips on what you should know before buying a rare coin:

1. Was the mintage high or low? The word ‘rare’ usually refers to scarce. A rare coin should not be available in a large quantity in the market. The good way to identify it is to refer to The Official Red Book. Rare coins are presented in photographs with their respective current market value in the book which will be published annually.

2. Was the coin issued before year 1934? In 1934, President Franklin Roosevelt had barred coins to be used as legal tender during the Great Depression. Existing coins in the market were confiscated and melted down. Therefore, the quantity of coins minted before that year and escaped the meltdown are extremely low.

3. Will you get the premium out of the coin? If you are a collector, this may not be applicable to you. But, if you intend to trade rare coins, you may have to make sure whether the future buyer will pay the premiums for the coin you are about to buy. If what you buy is a real collectible, then you do not have to too worry about this.

4. Is the coin overvalued? Collectibles can be overvalued with ease. This is because a die-hard collector could sometimes affected by emotional factors in his decision making process. Make sure your mind is always clear when valuing coins you are buying. You may refer to The Official Blackbook Price Guide to United States Coins if you are in doubt.

5. Is the source you deal with reliable? When you are buying coins, the reputation of the dealer is pretty much important. You may want to find a dealer who has established itself for at least 30 years in the industry. A dealer who can survive this long usually have significant amount of loyal customers due to their sincerity and reliability.

The process of buying rare coins should not be a hasty one. You should get hold of enough information before making a deal to avoid buying an overvalued rare coins.

Leave a Reply

Your email address will not be published. Required fields are marked *