How should I go about making money in coins?

[carterhaines-migration]

I know that this is kind of like asking what the meaning of life is, but I was wondering how I should try to profit off buying and selling numismatic related stuff. I have so far bought and sold coins and gold nuggets via the internet (mostly ebay), and I have made a buck here and there, but not really enough to support my coin hobby. As I am only 13, I have little money to work with, and I am not really able to go anywhere, so I would hope to keep my stuff primarily on the internet. I have a good amount of time on my hands, but I would prefer not to have to hold any particular item for a long amount of time as I feel there is too much risk involved. Does anyone have any ideas how I should go about making money off buying and selling coins or coin supplies? All ideas are appreciated, thanks!

[DonHeath]

Carter,

 

I'm sure you're looking for concrete advice, but I'd like to offer some general advice instead. Generally, you have to add value to a product to sell it for more than you paid.

 

Some add value by virtue of their labor. They search rolls, bags, mint sets, etc. looking for a few choice high-end examples to submit to the grading services, reselling the unused coins. In my limited experience, if you do a superb job buying the raw material, have excellent grading skills, are willing to wait for the grading companies and auction houses to turn your coins around, are sucessful selling the PQ coins and selling the ungraded raw coins, you can generate a profit based on your labor and skill.

 

Others add value by virtue of their grading skill and experience. They examine countless coins in auction listings, at shows, and in coin shops looking for coins that are undervalued or undergraded. You must be skilled enough to see what others don't. Remember that at every auction you win, you have usually outbid countless experts.

 

Many less scruplous sellers add value by simply overdescribing the coin they are selling. These sellers are not usually profitable forever, and are not long-term players.

 

The last, and most profitable way is education. Many of our fellow collectors collect, buy and sell, and yet ignore this most profitable investment. Skilled collectors are many times able to see in seconds what others wouldn't see in a lifetime. Varieties, errors, condition rarities, misgrades, and all sorts of cherries are available to those who've invested proper time and energy in learning. Perhaps you have already done so, but if not, I'd suggest spending a few days in the ANA grading seminar, and some time with the books.

 

I hope my advice isn't misinterpreted as preachy or as a lecture. That's the last thing I'd intend. I'm just another collector like you who is still learning, and will never learn it all.

[braddick]

Pick your favorite series- it can be anything- and learn all you can about it. Read; ask other collectors, and bug Dealers who specialize in what it is you're interested in. -Get to where you know more about your specialty than just about anyone else. Certainly more than the local Dealers in your area.

Next, buy the sleepers you are now aware exist within that series.

 

Have them attributed via ANACS or NGC and market them to savy Collectors who seek these varieties out.

Be honest. Be humble. Be a good listener. And, enjoy yourself.

[TomB]

You've received excellent advice thus far. I will add that the most money I have made in selling coinage is in selling coinage that I bought for me, and not in coinage that I bought for re-sale.

[msmhappy]

 

Carter, Sorry, I dont sell coins, I just buy them for my collection, and keep them!!

 

Good luck in your quest for answers!!!!!!

 

mike

 

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dont forget! collect proof sets!!!!!!!!!!!!

[cladking]

One can also add value to coins by separating them. Mixed junk coins, tokens and medals have little value because of the effort required to separate them. Ten pounds of junk worth a few dollars a pound might contain nearly $100 worth of material if separated and offered to specialists. $100 worth of mixed buffalo nickels might be worth $300 if separated by grade and date and sold to the various highest buyers. $100 worth of proof sets migh be sold for $150 if meted out to those who pay the most for the various parts. Such activities may be very labor intensive and require years to learn though. You can also assemble a few dollars worth of indian cents into collections which will retail for more. Many people will find such niches. Those who make money consistently in the hobby are those with a good eye and good business sense. They buy coins and sell them for more. They need to know the market, their customers and how to make money. To get into this last category it's best to have someone to teach you the ropes. Though some have gone it alone and excelled.

[BillJones]

If you want to reduce the methods by which one makes money in coins to a list, here’s how I would do it:

 

1. Value added. As Cladking described it, dealers take masses of material, sort it, catalogue it, package it and then retail it to customers.

2. Facilitate. Dealers seek coins that collectors want for sale, buy them and then offer them for sale. These sales are made though general offerings at shows, on the Internet, Ebay or in printed material. There are also want list sales.

3. Cherry picking. Some people learn to recognize rare die varieties and buy them unattributed from dealers or buy them from dealers who do not have a market for that specific item.

4. The Bernard Barouche (sp) once said, “Make money with your arse , buy land and sit on it.” One can do the sale with very desirable collector coins. Buy really nice pieces and hold on to them for an extended period. This is easy for collectors who love coins because they don’t have a desire to sell their holding constantly anyway.

 

Which coins should you buy? Well, if you came to think like a real collector chances are you will find out. In the current market real collectors coin generally sell in the $500 to $2,500 range and have a following of dedicated collectors who are not addicted to reaching the top of the Registry.

 

 

 

[EZ_E]

Hey, Carter.

The best way to make money in coins is to not sell them for less than what you paid for them. Duh...

I used to collect coins when I was your age, then, when I turned 14, I sold them a little at a time for beer, car, gas, etc. I sure wish that I had a lot of the coins that I had when I was a youngster. I'm 37 now so I had stopped collecting for a 20 year hiatus.

Your finances are probably limited right now, so buy the best coins that you can afford. I feel that the 1931 D and 1931 S Mercury dimes are a bargain in the ms 60 to ms 63 range. Good luck to you, Carter. Buy smart and don't let your coins finance your partying when you get older. Avoid bulk coins: like bags of common wheaties, bulk silver, etc. They just take up space and don't appreciate much.

It seems like anymore, purchases directly from the US mint are good investments. i.e. the 2002 silver proof set has already more than doubled in value since it went off sale in January!

Another point to keep in mind: find a good career because coin collecting is not a cheap hobby!

Good luck to ya, bro.

[Oldtrader3]

If you can learn to carefully grade one or two series, I believe that there is a profit potential in buying attractive, AU58 sliders. Many times, you can buy them for AU money and sell for much more if they are attractive coins. Although a more expensive coin, I have attached a AU55 SL Half for illustration (1845O/O, No Drapery).

[jtryka]

I am not even sure why you are asking this question as you seem to be doing very well for yourself on eBay. Then again I doubt anything I would offer in the way of advice would be helpful in any way since it is obvious to you that I am "nothing more than a beginner numismatist."