Some of the smartest people I know are coin collectors and coin dealers. One of the questions I occasionally get from newcomers is, "how do I make money with coins?"
My response is that you have to be really smart and, sometimes, you have to be really dumb.
Smart because you must have at least a general knowledge of the coins that you are trying to buy. You need to know and research your coins and the particular series or market. That’s the smart side of the equation.
Now for the dumb part.
The dumb part is where many collectors or dealers take the actual plunge that most people wouldn’t take. For example, I know many people who are interested in coins but are too cautious or nervous about buying coins.
One of their biggest concerns, which I have heard over the years, is "how can I trust a dealer whom I never met?" They go on, "I can’t send them my money for a coin...what if he never sends me the coin?"
Others are concerned that the coin might be a different coin from the one they ordered. Others worry the coin may get lost in the mail.
These are legitimate concerns and worth considering, but for the most part, the coin market is a very safe market if you’re dealing with reputable dealers or sellers.
While many potentially new collectors may think that it is dumb to send money or coins to a coin dealer, an auction firm or a coin company that you have never dealt with, many coin collectors and dealers have been doing this for many years without any issues.
I know for me personally, some of the best coin deals that I have ever made have been because other very smart people were so cautious that they passed on a deal. Fortunately for me, I’ve many times thrown logic out the window and gone with my gut instinct or collecting desires. In the end, my coin acquisitions have paid off.
So, if you have been keeping an eye out, trying to figure out whether to buy that special coin or coins, remember, there will never be a perfect time to buy coins, just like in any other market.
Just do your research, deal with reputable dealers or sellers, buy PCGS graded coins, don’t over pay by too much and most importantly, buy coins you like – that way you can never go wrong!