The number of coin collectors in the United States has been growing by 1.89% every year since 2000. The global coin collection market now is worth $17 billion.
Coin collection is all fun and exciting until you make a mistake. While some mistakes are small and negligible, some coin collecting errors are significant and can make you lose your hard-earned investment.
If you plan to start your coin collection journey, you must know some of the costly mistakes you should avoid. This guide will discuss the top eight such mistakes. Read them to increase your knowledge before you finally start collecting your favorite coins.
1. Impulsive Coin Buying With Minimal Research
Every hobby requires enough research, and coin collection is not an exemption. Before you buy, you should conduct your research on the available coins in the market and their value.
You should determine the requirements for buying out the different types of coins and study the tips for collecting your favorite coin. If possible, you can find first-hand information from investors who have the coins you need.
When you have little or no information about the coins, it becomes very easy for you to make regrettable mistakes. So don’t rush the collection process, take your time in the research phase, and avoid impulse buying when you are a starter.
2. Cleaning the Coins
There are many sad tales of coin collectors who have tried to improve the coins’ appearances by cleaning them. In one sad story, a poor collector made a $250,000 loss when he scrubbed off the patina is a valuable coin when cleaning.
Coins are not like vehicles that you must present in an excellent condition to increase their value. Coin cleaning only damages the coats and discolors them.
If you feel that your coin is too much discolored and needs some cleaning, submit it to the conservation services for helpful advice on what to do. The experts will give you a coin cleaning kit that you will be using.
3. Not Differentiating the Fake and the Original
Nowadays, every industry is prone to counterfeits. Before you dive into coin collection, learn how to differentiate between the fake and the original.
One great way of detecting the fake coins is by using a microscope to check the coins’ details. You can check the coins of the dealer selling you coins against other coins from reliable dealers.
You can then capture the details of that coin and upload it to your computer. Alternatively, you can take the coin to reputable coin collectors to help you identify that coin’s legitimacy. Don’t keep a coin you doubt. It would be better to drop it than to store it.
4. Buying Coins From the Wrong Dealers
As the demand for coins continues to increase across the globe, the number of coins has increased. The high number of different coin dealers may easily overwhelm and confuse you if you are not keen.
Coins are valuable investments that you should not buy from any dealer you come across. You should only get them from a reputable and well-vetted dealer. Don’t be fooled by those who sell coins on television, either. You should only trust them if their reputation is excellent.
You may get references on the best coin dealers from the available directories in your state. You should still do background research on the names of dealers you get from the directories.
5. Exposing the Coins to Dirt or Hazardous Chemicals
As mentioned, a coin is an invaluable masterpiece. You should handle it the way you would handle the delicate museum art.
The first tip for protecting your custom military coins is to avoid bare hand handling. Your hand could be dirty, dusty, and may contain hazardous chemicals, which might be a threat to the coins.
You should use a soft cloth or cotton wool when touching them, especially if your hands are dirty. The gloves/the cloths you use for handling should be soft to avoid scratching the coins’ surface.
6. Not Joining a Legit Coin Collecting Community
Like business, you need other people to grow and make wise decisions. As a coin collector, you will need to stay and talk to other coin collectors like you, and that’s why it’s recommendable to join a coin collecting community.
The group can either be offline or online. You can learn more coin collecting strategies and get helpful recommendations for the best coin dealers.
7. Not Insuring Your Coins
Your valuable coins may be stolen, catch fire, or get lost in the event of floods and other natural disasters. While you may not prevent these unfortunate events from occurring, you can avoid the effects by getting coins insurance.
Many insurance firms offer this type of coverage. The coverage ensures that the coin collectors don’t incur massive losses when they unexpectedly lose their coins.
Just make sure that the insurer is reputable and reliable. The ideal insurer should examine your coins, check their value, and offer coverage based on their value and current condition. However, you should still protect your coins in a safe cabinet to minimize the risk of theft.
8. Selling Too Quickly
Some coin collectors make the mistake of selling their coins too quickly after buying them. While there is nothing wrong with quick selling, the problem is that you can incur significant losses.
Patience is the key to selling coins. When you have a pressing financial need, the pawnshops will most likely be taking advantage of your situation.
Some may buy the coins at meager prices, while others might take advantage of you in other ways. If you really need to sell your coins as soon as possible, find a reputable buyer, or get a broker to help you in the selling process.
Avoid the Common Coin Collecting Errors
Coin collection is one of the most satisfying, promising, and affordable hobbies out there. It is also exciting because people of all ages can participate.
If you have developed an interest in this hobby, then take note of the above-discussed coin collecting errors to stay safe and make the best of it. You may seek guidance too from successful coin collectors.
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