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Collector Coins: a Great Investment You Can See Every Day

Morgan Silver DollarI have been collecting coins for as long as I can remember. My brothers and father introduced me to the hobby which has turned into quite an investment. When I started, silver coins were in circulation. My paper routes gave me plenty of coins to search and keep.  Although most of my collection is kept in a safety deposit box at the bank, I keep an inventory on hand to view and appreciate every day.

One thing I realized I love about coin collecting, or numismatics as the hobby is titled, is that unlike stocks and mutual funds, coins are available to visually enjoy, touch and feel every day. Another thing I love about collecting coins is they always gone up in value if know what and how to collect. Personally, I love toned silver coins. I have a collection of Bust Half Dollars and Morgan Silver Dollars that are among my prize possessions.

If you collect or are thinking about collecting coins, I strongly recommend that you buy coins that are third party graded and authenticated. eBay has some great deals, but do your homework before buying. Here are some reasons to buy only third party graded coins:

  • Third party graded coins are authentic and genuine based on a third party’s expertise
  • If you ever want to sell your coins, having them third party graded maintains their value
  • There is no doubt about the grade of your coin since the third party grading is credible
  • Third party professional coin graders have no emotional stake in the value of your coin

Rainbow Morgan DollarHaving a coin graded by a third party professional grading service will cost you about $35 on average. Let’s use a Morgan Silver Dollar for sale on eBay for $100. You can research the value of this coin on the PCGS website and confirm its market value. If the value of your coin is $100 and is in a third party graded sealed plastic holder like the one in the picture, then you can add at least a $35 value to your coin and have made a profit before you receive the coin. The price to have that coin graded by any of the reputable coin grading services like ANACS and PCGS is $35-$50 depending on the type of grading service you request. The PCGS website has a price guide and grades coins as a service.  ANACS is strictly a third party grading service.

Now, if that coin is for sale on eBay for $75, you just made a $60 profit!

Considering the facts that silver prices generally go up in value over the years and other investments do not bring as much enjoyment because you cannot touch and see them on a day to day basis, collecting coins is not only fun but also profitable.

I strongly urge you to stay away from buying coins that are not third party graded because your coin grade is based on an emotional opinion and value. You cannot confirm the coin grade and mishandling that coin may have had in the past.  Plus the person selling the coin may have priced it at a higher grade that the actual grade of the coin. Cleaning for example will lower the grade and value of a coin. Learning how to detect this mishandling is hard for the beginner. Then, when and if you ever try to sell that non-third party graded coin, you will more than likely lose money.

I plan on enjoying my coins throughout my life and passing some onto my family as well as selling them in on line auctions as I need the money in my later years. I will continue to keep them in a safety deposit box and on hand for future enjoyment. I love watching the value increase over time and especially love thinking about the coins history: who owned the coin?  Was it used in a transaction or in a civil war soldier’s pocket? Not knowing where the coin has been or who owned it adds more adventure to the hobby for me.

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