How can we get started with coin collecting whilst spending as little pocket money as possible?
If you were to ask a hundred experienced collectors what the most expensive coin they had ever bought was, many would not mention a rare gold coin. Instead, they would mention that perfectly ordinary coin they bought as a beginner, with no experience. In coin collecting, we call this a ‘learning coin’.
Almost every collector has paid their dues at some point. The only difference is that some learn from losses of a few thousand forints, whilst others lose hundreds of thousands or even millions due to bad decisions. Most mistakes, however, can be avoided.
In this article, we have compiled some practical advice that has been proven by years of experience in the numismatic market. If you follow this advice, you will be able to set out on your journey in this specialised field with much greater confidence.
1. Knowledge is always a better investment than an impulse buy
You can find tens of thousands of coins online in just a few minutes. Beginners often feel they have to buy straight away, for fear of missing out on a rare item. The reality, however, is that the first few weeks should be spent learning. Look through auction catalogues, keep an eye on hammer prices, and compare the different conditions of the same coin.
Procopius’s tip
Before you buy a single coin, take a look at at least 100–200 auction lots. Even after doing just that, you’ll see the market in a completely different light.
2. Select a collection category
It is not possible to collect Roman coins, Árpád-era denars, Franz Joseph gold coins, pengős and modern commemorative coins all at a high level at the same time. A well-chosen specialism leads to much faster progress.
3. Quality is more important than quantity
One of the most common mistakes made by beginners is buying five coins in average condition for the same amount of money, rather than a single, really fine specimen. Higher-quality coins are generally more sought-after, easier to sell and retain their value better in the long term.
A common mistake
A novice collector often looks at how many coins they have. An experienced collector looks at their quality.
4. Learn about the states
The condition of a coin is often more important than the year of issue itself. There can be a significant difference in price between two identical coins simply because of their condition. In the following section, we will explain the European and American grading systems in detail.
5. Be wary of offers that are too cheap
If someone is offering an extremely rare coin for a fraction of its market price, you should always be wary. It could be a forgery, a restored piece or simply a misidentification.
6. Buy from a specialist
Not every antique dealer is a numismatist. Choose a dealer or auction house that specialises specifically in coins, has a professional reputation and guarantees authenticity.
Through the eyes of an expert
Expertise is often not demonstrated by someone’s ability to sell a coin, but by their ability to tell you which ones you shouldn’t buy.
7. Document your collection
Keep your receipts and make a note of where, when and at what price you made your purchase. This information may be extremely important should you wish to sell the item or take out insurance at a later date.
8. Be patient
A good collection isn’t built up in just a few months. Most coins reappear on the market. A patient collector usually buys a specimen in better condition for the same amount of money.
Checklist before your first purchase
- Do I really know this sort of person?
- Did I compare the price with that of other items?
- Am I buying from a reliable seller?
- Does the coin’s condition justify its price?
- If I’m unsure, have I sought expert advice?
Summary
In numismatics, the best investment is knowledge. If you learn first and only then buy, prioritise quality and purchase coins from a specialist, you will have already avoided the mistakes most beginners make.
In the next section, we will examine how the condition of coins determines their value, and how to navigate the differences between European condition grades and the American 70-point grading system.
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Which piece of advice do you find most useful? Is there a mistake you’ve already made, or one you’re worried about making? Please let us know in a message – we’ll be addressing these questions in the next instalment.