Coin Collecting for Profits: The Importance of Understanding Value and Condition

 

Coin collecting is a hobby that is enjoyed by many.  In fact, is a hobby that young and old enjoy alike.  One of the many reasons why coin collecting is popular is because of its many purposes.  While many coin collectors collect coins just for personal fulfillment, others do so for profits.  If you are looking to start a coin collection, which can later be sold, the importance understanding of coin values and conditions cannot be emphasized enough.

One of the many reasons why coin collectors are urged to understand the importance of coin values and coin conditions is because they can be wasting their time if not well informed.  With that in mind, it is important to remember that many individuals enjoy coin collecting as an activity for a wide range of reasons.  Those who coin collect for a hobby only will not suffer any consequences for not familiarizing themselves with values and conditions, although there are still a number of benefits to doing so. On the other, the same is not true for those collecting coins with the sole purpose of seeing profits.

In keeping with seeing profits from a coin collection, it is important to remember how coin collections make money.  Once a valuable coin collection has been complied, many coin collectors choose to sell their collections to other hobbyists, professional or historical organizations, as well as a coin collecting dealers.  Generally speaking, these individuals, especially professional coin collecting dealers, will not pay for a coin that is in poor condition.  If money is exchanged, that money will all depend on the condition of the coin.  To increase your profits, as a coin collector, it is important to take proper care of your coins.

Speaking of proper care, there are a number of steps that all coin collectors, including beginners, should take.  For example, storage is an important component of owning a profitable coin collection.  Although many of the coins in your collection now many not be valuable, they may be years from now.  Unfortunately, if coins are not properly stored, their value can significantly deteriorate over those years.  Many professional coin collectors use coin folders and coin albums as a method for safe and proper storage.  Beginners can easily find these items available for sale online or from specialty hobby shops.

As it was previously stated, coin values play an important role in selling a coin collection.  With that being said, there are many coin collectors, especially those with hopes of seeing profits, who choose to purchase coins to add to their collection.  When purchasing rare, older, or limited edition coins, many turn to professional coin dealers, as well as the internet, namely online auction websites.  Regardless of how coins are purchased, the importance of value and condition cannot be said enough. 

When shopping for coins to add to your coin collection, it is important to examine the condition of the coin or coins in question. This is because condition and value tend to go hand in hand.  For example, a coin in poor condition is likely to decrease in value, especially when compared to those that are in perfect shape.  This is important when making a coin purchase, as you will not want to pay full asking price or full value price for a damaged or distorted coin.  Coin collectors who have hopes of later selling their coin collections for profit, need to keep expenses in mind.  The less money spent to develop a coin collection, the larger the profits will be later on.

As ideal as it is to know that you and all other coin collectors should take the time to familiarize yourselves with coin conditions and values, you may be curious as to how you can go about doing so.  For starters, there are a number of coin collecting resources that you should have access to, either online or in print.  These resources include coin value guides or detailed steps on how to determine the exact condition of a coin.  This often involves using a rating scale, such as the Sheldon System, which is used by many professional coin dealers, as well as the American Numismatic Association.