Rational Way To Collect A Coin?

I tend to collect the common coins first. Thinking about this, it is probably because I look at a lot of coins before I buy a particular one I am looking for. Because there are just more common coins out there, I tend to run across a lot more of them and so it is easier to buy.

For example, compare a 1918 and 1918-S Lincoln Cent in uncirculated red brown. I ran across a nicely toned 1918 at a coin show. How much, I asked? 20 bucks? was the response. Done, I said. When I see a coin I like, I buy it. It just happens easily.

On the other hand, I have been looking for a 1918-S in the same grade for months (along with a few other semi-keys). Longer really, but now I am really focusing on these. They are mostly just not out there - at least not for the price/quality balance I am looking for. So I wait. Eventually, all the common coins for a particular set I need are bought, and I am left with the hard ones.

One of these will probably come along eventually I am sure, so I can be patient. I have learned that patience is a good trait when buying coins.

The other thing I think we take for granted is the fact that coins will appreciate in value forever. They might, but they might not. The key date you buy today might not keep up with inflation in the future. It is possible.

It's easy to think you should have loaded up on silver coins or key dates back in the 60's or 70's. But you could have bought stamps or beanie babies or baseball cards instead. Or if you would have taken that money and stuck it in the stock market, it would have likely appreciated even more. So, in the end, it is all unpredictable and you should collect what you love and enjoy. If it ends up being worth something, sure, that's great. Just realize it might not. I think the true collector is mostly ok with that.

Tampa's a pretty good area to be a collector - some serious dealers are located near NGC.

I'll toss in my Two Cents...

No, sometimes there just is no rational way. Usually, that goes like "omygoodnessihavetohaveithowmuchheresmydough!"

But seriously, once you're a more advanced collector, you'll learn to buy the keys first because they're *generally* speaking the ones that appreciate the most, and you'll have learned how to buy them right.

Until then, there's nothing wrong with buying the common dates, especially if you buy them in a spread of grades, problem-free, not problem-free and really learn how to identify choice coins. Once you've learned to grade a coin properly and figure out if it has been doctored or if its the real deal, you can then a bit more confidently approach the valuable coins.

Be wary however, many key dates have special grading issues. And I've learned this lesson a few times: a little bit of knowledge can be a very hurtful thing.

So while you're starting out, be aware, you'll probably spend a bit too much once in a while (or if you're like me, a LOT too much), but that's just the cost of education.

Oh yeah, and DO buy the book, if not now, sooner than later. Definitely before you start getting the keys...


*tink a tink*


I forgot to mention - DO NOT be crushed if you think a great deal got away. 9 times of 10 an even better deal is just around the corner. Don't beat yourself up. Patience...

We here often spend hundreds (sometimes thousands) of dollars on a small piece of thin metal.

Do you find anything rational about that?

No, there is nothing rational about collecting coins. Warren Buffet has 60 billion dollars, and yet he wants more. Is that rational? I don't think anything we do is rational. It is like the blind men describing an elephant. At least we coin collectors know we are nuts.