How to Collect Gold Coins

Coin collecting is a hobby for some and an investment source for others. The amount of time and money used in the effort to collect gold coins varies with the level of desire to become a numismatist (coin collector). Whether for a hobby or an investment, it's important to understand the ways to get the most for your money.

Difficulty: Moderately Challenging

Instructions

Build a Gold Coin Collection

1. Investigate the dealer before buying gold coins. Look for the amount of time the dealer has been in business, and determine whether she has a physical address.

2. Investigate the market value of coins before you purchase. This is accomplished by asking several dealers about the price for buying and selling coins. Also, check with auctions for current coin prices.

3. Get your start with coin collecting by purchasing coins from owners. Many coin collectors use brokers who sell the coins at higher prices and collect fees of 10 to 30 percent.

4. Take advantage of professional expertise in coin collecting. Choose a dealer with coin interest that matches yours. It takes years and lots of experience to learn how to determine the true value of coins.

5. Choose a dealer with membership in the PNG (Professional Numismatist Guild). There are more than 300 members in the PNG who possess expertise in coin collecting.

6. Select coins for your collection that are graded by the Professional Coin Grading Service (PCGS) (see Resources below).

7. Learn the gold coin market and become educated in numismatics by investing in books or checking your local library for resources.

8. Check the PCGS Online Population Report for information on rare collections (see Resources below).

9. Expect coin collecting to require accurate recording of each piece. Catalog the purchase cost and keep an updated log of market value to know whether your investment is growing.

Tips & Warnings

• Ask the dealer whether the coin is his. If the coin is through a broker, make sure the dealer has actually seen the coin.
• It is important to have your gold coin collection appraised at least every 6 months. If not for resale value, at least have it done for insurance coverage in case of loss.
• Go for sets instead of individuals. Complete sets of like coins will increase in value more rapidly than individual coins.
• Avoid buying gold coins that you or a broker cannot view in person. Coins in auction catalogs can be misleading.

Resources

• Coin grading at PCGS
• Rare-coin information at Certified Coin Exchange

[sunwukomk]

on 11/5/2009 9 great steps, on the other side of the pond in Europe we are no so organized - SwK www.petioncrown.com i do not have one coin slabbed. What do u think, [e-mail]