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United States Type Coins. Images Courtesy of Heritage Auction Galleries

Mistakes to Avoid when Making Coin Investments

August 31, 2018

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Collecting coins is not only one of the most exciting activities but also a good way to invest your money. However, there are certain mistakes even an experienced collector can make. The best you can do in any situation is to consult a reliable coin book or join a coin club to get advice. Also, the tips listed below will help you avoid some common mistakes.

1. Don’t buy coins from TV coin dealers. You won’t be able to get a fair market price given the high advertising and associated costs.

2. Don’t buy “hot coins”. Even if the person persuading you to buy a coin that will be extremely valuable in the future sounds indeed convincing, you should always remember that the market is unpredictable.

3. Don’t buy coins from self-slabbers even if they have certificates. When you intend to buy a coin with a certificate, make sure that it was granted by a top-tier coin authentication and certification service.

4. Think twice before buying a coin from a small/unknown country. Even though such coins can be regarded as rare, it does not mean that they are valuable and someone will be ready to pay much for them (or anything at all).

5. Remember the difference between an advisor and a salesman. Salesmen often try to act as coin advisors and provide you with “expert” advice such as investing into hard assets (their coins) before the financial market collapses. You should understand that such people are trying to get rid of the coin they have, so you are not going to get a fair price for it.