Avoid Making These Coin Collecting Mistakes!

coin collecting mistakes
by: Ben Tseytlin - on Coins & Currency

Are you planning to invest in three cent silver coins or half dollars? If you have long felt the magnetic pull toward collecting coins, you probably feel overwhelmed with where to start and how to proceed with a purchase. Before making a decision, you should equip yourself with some basic knowledge, i.e. common coin collecting mistakes that beginners make. Here are some of them:

Mistake #1: Direct Skin Contact

Some beginner coin collectors make the mistake of handling their coins directly. You should keep in mind that this is a huge no-no. When you repeatedly touch the precious metals of a coin, you are tarnishing the quality and value of the material. The damage may not seem much at the beginning, but the effects build up over time. With that in mind, you should never remove your coins from the slabs they were packaged in. This applies to both PCGS and NGC slabs. These slabs are designed to keep your coins in the original condition they were sold to you in. The concept is like toy collecting. Once you remove the toy from its box, it immediately loses its value.

Mistake #2: Cleaning the Coins

The coin looks old and dirty, thus you must clean it right? Wrong! You should never clean that old, collectible coin because you will ruin its value in the process. It is true that a 19th or 20th coin looks too beat up to display. However, that is what makes it is so valuable. The natural patina it has developed all these years is part of the coin’s allure. There are stories where first-time collectors cleaned their coins with abrasive and harsh solutions, in an effort to restore some of the coin’s original luster and appeal. These actions just dampen the value of the coin over the long term.

Mistake #3: Buying from Non-Certified Sellers

Rare coins in slabs sold by a professional certification service and a random seller on eBay are from two different worlds. Coins sold in slabs do not automatically mean that they are valuable and rare. These coins have to go through proper authentication and certification services. Today, two of the leading authentication and certification services include the Professional Coin Grading Service and the Numismatic Guaranty Corporation. Second-tier authentication and certification companies include the Independent Coin Graders and America’s Oldest Coin Authentication and Grading Service. So, always make sure that the coins you are buying were encapsulated by the ICG, ANACS, PCGS, and NGC. This is going to save you from potential heartache.

Mistake #4: Unsure What’s Rare and What’s Low-Mintage

The interest in precious metals continues to boom. Hence, you will find many collectible coins that feature details such as extremely low mintage or low mintage. You should keep in mind that they do not mean the coins are rare or valuable. Let’s pretend that you came across Silver Washington quarters (these are valuable). When you are considering buying them, you should ask yourself if other numismatists actually want them. You should not only be concerned with how many of these coins were made. If there is no demand for a coin when it is sold, it is a waste to add that coin product to your collection.

Mistake #5: Lack of Research

If you are a first-time coin collector, chances are your numismatic knowledge is still raw. Oftentimes, just learning general information on a coin, e.g. popular forms, spot prices, etc., will not get you far. It is pertinent that you perform research through legitimate numismatics blogs. Alternative sources include mints that strike those coins. They obviously have a deep knowledge of coins.