What You Can Expect to Find in a Rare Coin Dealer
Who are these experts known as the “rare coin dealer”? What is this man or woman’s personality, and what is their motivation. Essentially, these dealers are there to guide you through the coin-collecting process—but they are not there to recommend something in particular, as in a great bargain you must buy today.
No, true coin dealers recognize that the business is complex and there is not always a right answer. The dealer must determine, firstly, what you want and then suggest to you options that you might find interesting. The dealer’s knowledge comes from a thorough understanding of what sells, what is popular in the market, what is rare, and what is historically relevant. He or she also tends to have a broad knowledge of numismatics, precious metals and perhaps the stock market and economics. All of these factors will determine the price of bullion, as well as the price of rare coins.
The dealer you choose will usually start the conversation (assuming you ask something predictable like, “What should I collect that’s profitable?”) with a question. The rare coin dealer will usually ask what type of theme you have for your portfolio. For example, some collectors like coins collected by year, or country, or according to a historical movement. Therefore, if you ask, “What should I collect?” the dealer is going to try to learn you, to see what you want to hear.
The coin dealer cannot simply tell you what coin is worth collecting. He or she could generalize and say that gold and silver are worth collecting, and that American Eagles and Canadian Maple Leaf coins are hot—but this is sort of like an “apples and oranges” discussion. The dealer will probably then ask you if you plan to profit short-term or long-term. If you want to profit short term, then your best bet is to buy bullion coins when they are cheap, which you will then sell when gold or silver hit a new peak. However, if you want to wait, he or she may suggest popular coin series like the Presidential Spouse series or the American Eagle series.
Last but not least, he or she will ask if you want a rare collectible coin and if you’re willing to pay for it. The dealer may offer you a rare coin like a Morgan dollar or a Libertad silver coin. This is always a quick and easy way to start your collection but can you afford it?
For more information, talk to a rare coin dealer about your coin collecting options.