Knowledge is Numismatic Power

Collecting numismatics does not have to be expensive, although it obviously has never ending potential. There are so many different ways to collect that must be considered before diving into the deep end of numismatics, but one thing is always consistent. Knowledge is the key -- knowledge of what you are looking at and what your end goal is, understanding the current market and how to properly look up pricing, and being able to combine these skills to create the best long term potential for your collection.

There cannot be enough said for the physical literature covering numismatics that is available. Unfortunately at this time, a vast majority of it is not easily accessible online, so it is very important to pick up some literature pertaining to the types of collectibles you want. Forums and online communities can be a very good avenue for help and guidance, but having the literature and knowing what is in it are both key. Learning the literature that pertains to your collection will always help you have a stronger grasp of what you own. There is always more to learn.

Pricing is often confusing because of the large amount of accessible information available. Just picking up a magazine or browsing eBay, you may find dozens of different asking prices for a seemingly identical coin. What do we do with all those numbers? First, set this information aside and search through the recent archives of auction houses that sell numismatics. Anyone can ask a price, but that does not mean it is an accurate one, and for this reason we look at sales records. It is many times more likely that an item in a public sale sold for a current market price. Being able to look up multiple examples gives a much better idea of what you might want to pay. With this knowledge, you can much more accurately gauge the current offerings as you browse.

Don’t let a loss on a coin discourage you from the end goal. Every dealer and collector out there has lost money on multiple purchases, if they tell you otherwise I’d recommend doing business elsewhere. Losing money is OK as long as you learn from it and can recover. The more knowledge you possess and the better understanding of the current market you have, the less likely you are to make a mistake. The best piece of advice from a losing purchase is to learn exactly what happened and why it didn’t work out in your favor, and then apply that knowledge to all future endeavors. Collecting is generally long term, so don’t be too quick to throw in the towel.

As you dive deeper and deeper into numismatics, you may find yourself branching off in many directions and collecting a little bit of everything. This is highly encouraged among the numismatic community. Some feel it best to have a direct goal and be able to "finish" a set. There is no wrong answer on how to collect, but there can definitely be less profitable ways. Do the research, buy some books, join a local coin club and ask questions. Buying the right items for the right price and knowing your hard earned investment truly is one worth having is a great feeling.