In my last article titled The Advent of Independent Third Party Coin Graders I told you I would be discussing why you should invest in coins, and the different type of starter coins on the market. From those proof sets you all have seen and heard of, to where you can purchase the real beauties coveted by dealers, investors and collectors alike.
So why should you be investing in coins and why now?
Because there is money to be made in coins. Not too long ago I purchased 14- $10 1987 Gold Eagles that average $1,625.00 each. I recently sold these to a dealer at a major coin show I attended for $2,150.00 each. It just so happened that these particular coins population was a rarity and because of this it allowed me to control the price of the sale. The best way I can describe it, it’s like having the last 14 1967 Chevrolets sitting in your lot.
Another purchase I made was a one of a kind $10.00 1897 gold piece for $28,500.00 which may seem on the steep side however, I sold it on Ebay for $33,000.00 making a $4,500 profit. Not too bad since the most time I spent on the sale was the time it took me to post it on my Ebay account.
But my most recent and probably my favorite purchase to date is a $2.50 1907 gold piece coin. There really is none like it and none better it’s a four one grade lower. So what is the coin worth? About $200,000.00 this is equivalent to having the ONLY ’67 Chevrolet on your lot.
Learning how to collect coins can be difficult, but starter coins purchased directly from the U.S. Mint is a great place to get your feet wet. Buying directly from the U.S. mint is safe and they’re fairly quick when it comes to delivery. The U.S. Mint distributes precious metal, and commemorative coins.
When searching for the actual U.S. Mint website, you may be directed to another site without knowing. This is the actual site http://catalog.usmint.gov/shop/ so make sure to store it in your favorites. Stage dealers know how to manipulate the web to direct the unwary from a desired site to theirs by having their web address and site similar in appearance, so be on the watch for bogus sites as it can cost you dearly.
The Better Business Bureau (BBB) is another great place to start your search on websites to purchase coins. Usually, a good BBB will accept kudos and complaints alike.
When purchasing coins it is important to be realistic on what you can afford a year out and even 10 years out, since this is something that is usually collected for the long term.
Also make sure to search the web before purchasing any coins, as it’s filled with tons of information and beginners guides, or pick one up at your local book store. And always remember to purchase PCGS or NGC certified coins, which I also discussed in my last article.
Bottom line: There is definitely money to be made in the coin business you just have to do your research and be aware of scammers, because one day you can come across a rare coin that can help pay for your retirement.
Happy Gold Hunting,
Brian Bobbit, is an avid coin collector and agent, a former Precious Metals Broker for International Precious Metals Corp. in Pompano Beach, Florida, and a former Commodity Broker for International Trading Group in Coral Gables, Florida. He is a Member of PCGS, the Professional Coin Grading System (2nd largest and 2nd most respected coin grader) and NGC (National Grading Corp., Grader for American Numismatic Assoc.), as well as a Member of the Palm Beach County, Fort Lauderdale, Hallandale, and Melbourne Florida Coin Clubs.
*Editorial Contributors’ Disclaimer
American Eagles are not subject to the United States broker reporting requirements while Maple Leaf gold coins, Krugerrands are. However, I am not a tax consultant; therefore, please consult your own tax adviser for ANY tax consequences of numismatic investing.