The “double eagle” coin of 1933 currently stands as the world’s most expensive coin, having sold in 2021 for a whopping $18.9 million. While not everyone has that kind of money to spend on a single coin, coin collecting isn’t exclusive to the affluent. Any average Joe with a decent paycheck can start their own coin collection.
That said, starting your own coin collection isn’t as easy as buying coins and stashing them in a fancy container. In fact, one or two mistakes in coin collecting and your entire collection could bite the dust. So what are these coin collecting mistakes, and how can you sidestep them?
Well, to find out, keep reading because, in today’s post, we’ll be highlighting a few coin collecting mistakes you should avoid at all costs.
1. Storing Your Coins Improperly
The first mistake most beginner coin collectors make is not storing their coins properly. Remember, these aren’t the coins you toss in your pocket to use later for the vending machines. Instead, they’re high-value coins whose value could depreciate within a finger’s snap.
Deciding how and where you’ll store your coins is one of the most crucial decisions you’ll make as a collector. You want to store your coins away from excessive moisture and extreme temperatures. This automatically eliminates the attic and basement as storage area options.
Consider storing your coins in a dry place for the best results, but not in direct sunlight. That’s because some coins deteriorate in the presence of intense sunlight. This begs the question, “So where should I store my coins?”
A high-quality personal safe will do just fine. Alternatively, you can put them in a safety deposit box in the bank. Also, consider throwing in a couple of silica gel pouches with the coins to absorb any moisture.
2. Not Handling Your Coins Properly
Most coin dealers won’t allow you to touch the coins unless you’re planning to buy them. That’s because these are high-value coins with a specific handling method. Don’t make the mistake of handling your coins carelessly and end up defacing them.
It’s easy to mishandle coins because doing so comes naturally. Unlike other types of coins, you can’t “pinch” the coin and have your thumb and pointing finger on the face. Instead, you’re supposed to hold the coin by the diameter with your thumb and index finger on the edges.
Also, avoid holding raw coins in your bare hands. You might transfer some oil on your hands to the coin or scratch the coin with your fingernails. Always use gloves when handling your coins to ensure they remain in pristine condition.
3. Cleaning Your Coins
Your coin’s condition goes hand-in-hand with its value, depending on the type of coin. To improve the coin’s condition, most collectors clean their coins. Unfortunately, this almost always works to their detriment.
This isn’t to say you shouldn’t clean your coins, but you should leave coin-cleaning to the pros. Things like cleaning cloths, sponges with cleaners, or acid are a definite no-no. Doing so will only disfigure your coins and hurt their value.
During your coin-shopping, you might stumble upon a few rare coins that are dusty and sometimes encrusted in dirt. Don’t make the mistake of cleaning them yourself; instead, look for a reputable coin cleaner.
4. Lack of Proper Research
There are many types of coins, and not all of them are worth your time or money. It’s easy for beginner coin collectors to buy low-value coins because of improper research or hype. Serious coin collectors do their homework before they embark on their coin collecting journey.
If you’re starting, it’s best to start small with some not-so-expensive coins. You don’t want to go for the pricey coins only to discover they were fake. Join a coin collecting community and learn all you can about the different types of coins and how much they sell for.
Apart from coin collector communities, you can check out source: Custom Challenge Coins to learn even more. Also, consider buying a coin collection book or staying up-to-date with coin collector magazines.
When buying coins for your collection, little things like dates, mint marks, and other details are crucial. Don’t spend a fortune on fake coins worth nothing in the actual coin market.
5. Skimping on Your Coin Collection
Not all coins cost a bundle, but not all coins are cheap either. One of the worst mistakes beginners make is buying the cheapest coins they can find. You won’t have much of a collection if the actual value of your collection is $25, will you?
Don’t be afraid to splurge on your collection, especially if it’s likely to return a lot more than what you spent. Do your research and find a decent coin that you can invest in. Give it a few years, and your coin is now worth almost double what you paid for it.
Don’t be too fixated on the book value of coins so that anything slightly higher is a deal-breaker. Sometimes the book value of a coin may not reflect its actual value. When the value of a coin shows an upward trajectory, it’ll cost more when you buy it from a dealer.
That means you’ll pay more for the coin, but you’ll get a lot more when you want to sell it.
6. Selling Too Quickly
Buying and selling coins forms the core of coin collecting as a hobby and a trade. However, you shouldn’t sell your coins too quickly, or you’ll end up selling them to a pawn shop. If you do so, you’ll get only a fraction of what you paid for the coin.
Take your time and find a decent buyer who understands coins’ value. If you don’t find one, you’re better off holding on to the coin for a while.
Mistakes in Coin Collecting Simplified
If you want a fun and fruitful experience collecting coins, avoid the above mistakes in coin collecting. Don’t forget to do your research and talk to a few people that also love collecting coins. Otherwise, we wish you the best with your hobby.
For more informative content, check out some of our other posts.