Learn About Buying Rare Coins Directly With The Market Leader
February 11, 2010 – As the economy continues along its bumpy road to recovery, rare coins continue to offer an investment that can provide security and potential for future returns. Although many people are familiar with the process to buy gold and silver bullion, collector’s coins has different factors to consider in order for investors to get the best returns for their purchases.
The first step to success in buying rare coins is to only buy certified coins. Certification is the method of identifying the authenticity and quality of a coin using a standardized process. The Professional Coin Grading Service and the Numismatic Guaranty Corporation are the two recognized leaders in grading coins and both use the 70-point Sheldon Scale and precise steps for determining value. After grading, coins are sealed in a tamper-resistant case and identified so that future transactions for the coin will be at the already-established grade.
The next step for buying collector’s coins is to purchase coins in the investor’s price range that have the best chance of return on investment. A dealer wants to sell coins, and many will sell you any coin, regardless of its value. Researching the value of a coin and its potential for increase can help maximize any profit that a coin might bring. Both NGC and PCGS offer price guides that can help a trader find coins in his or her budget; for example, a 1907 Saint-Gaudens Double Eagle with a PCGS grade of MS-63 lists in the PCGS price guide for $2,500. While the price a coin sells at can vary, the guide offers a very good approximation.
The final step in successfully buying rare coins is to work with a reputable coin exchange. An exchange is preferable to a local dealer because of the amount of available inventory and the potential price savings involved by dealing with a high volume business. A reputable exchange will be highly rated by the Better Business Bureau and have coins ranging from reasonably priced pre-1933 American Eagles to rare Dollar coins and Indian Eagles.
For traders looking to diversify their investment portfolios, rare coins offer an excellent option. Buying certified coins that have a demonstrated potential for return and working with a reputable coin exchange can help increase the opportunities to profit from buying collector’s coins.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
