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As with everything in life, one should
endeavour to start out right. Junk coins refer to
common, poor grade coins, “repaired or improved”
coins and fakes which will not appreciate even after
decades because no one will buy them. If you are
investing, buy rare coins in good condition, which
are likely to appreciate yearly, and ensure a healthy
profit should one ever decides to sell.
Most coin dealers are honest businessmen with strong
commitment to their regular customers. However,
do watch out for the following unethical practices
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Overpricing: Granted dealers must make
a profit from each sale. Some dealers however accurately
grade their coins, but offer them at prices considerably
above market trend. Therefore, one should compare prices
among coin dealers. This will ensure the premium charged
is not exorbitant. Otherwise, it will be difficult for
you to later recoup your costs, let alone profits. Don’t
just compare prices per se – scrutinise quality
closely. Coins that appear similar may differ vastly in
condition and value.
Overgrading: Since the grade of a coin
is a major factor in the final evaluation, some coin dealers
overgrade their collection. Few collectors are grading
experts and are easily duped, especially with rare ancient
coins. “Improved” Coins:
Unethical dealers may attempt to improve the appearance
of old coins in order to pass them off as high grade
coins to the uninitiated. Such improvements are almost
always detectable by coin experts. To a coin connoisseur,
an altered coin (which may appear superficially more
attractive) is worth less than a coin in original condition.
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| Whizzing is a form of coin polishing
with a high – speed polisher. Since coins
with bright, lustrous finish are graded higher,
dull coins are occasionally whizzed to get rid of
faint scratches and achieve a superficial well -
preserved finish. However, whizzing leaves buffing
marks on the coin. It also erodes the highest points
of the image on the coin. This can be detected by
the trained eye of an experienced numismatist or
dealer. |
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Dipping is a commonly accepted practice in the industry.
Experts can dip a coin without leaving any mark or reducing
its value. Incorrect dipping, however, can diminish the
coin’s lustre.
Toning: Silver coins that have been stored in canvas
bags, paper envelopes or coin rolls for long periods
of time often acquire a beautiful tarnish or “toning”.
This toning can be extremely attractive and valuable
– consisting of rainbow colours. Do not be deceived
into thinking your collection of “tarnished”
coins is invaluable. (See Coin Care for the difference
between toning and corrosion).
How to Start
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The new hobbyist should start with a single meaningful
theme that he can relate to. One may diversify into
regional or universal themes such as “Famous
Personalities of the 20th Century”, “Chinese
Lunar Series”, “Endangered Wildlife”,
ancient or modern coins (gold, silver, proof), etc.
The latter are likely to be encased in bulky boxes
meant to preserve mint condition for years. Explicit
care and storage are crucial. (See Coin Care).
Coin collecting is an excellent hobby suitable for
all ages. It is ideal to start the hobby young with
time enough to research and accumulate an excellent
collection. |
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It has been said that patience and interest are all
it takes to make a little profit. Patience, however,
may mean anything from 2 to 20 years. It is true coin
collecting can be profitable – but only with the
right coin, over a long time. This explains why collectors
regard rare coins as a legacy to be inherited by their
next generation.
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What Constitutes the “Right
Coin”?
Proof coins appreciate faster in value compared
to uncirculated coins because they are always
limited in mintage. They possess face values and
are stamped on highly polished, mirror –
like surface. Both proof and circulated coins
are valued for their numismatic appeal by collectors
meaning a coin’s historical value overrides
its intrinsic worth.
Besides commemorative coins, bullion coins make
safe investments because of the pureness of their
gold or silver contents. All bullion coins have
a face value stamped on them. Popular mintages
include the Canadian Maple Leaf, Australian Nugget,
American Eagle.
Interestingly, the South African Krugerrand which
was the first bullion coin available in Asia,
was banned in 1986 by many countries because of
Apartheid. |
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Other Criteria in Selecting Coins for Investments
are:
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Designs: auspicious symbols for good luck and
fortune appeal to many Asians, especially Chinese.
Historical personalities, events, symbols, etc.
have their own following.
Themes: many collectors prefer complete series
and will buy coins within similar themes, i.e.
GQI’s Famous Personalities Series and the
new Bhutan Lunar Series. |
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Age and Rarity: generally, the older, and rarer the
coin (i.e. small limited mintage like the Pope John
Paul II coin) the more valuable it is.
Coin Condition: this varies from good to extremely
fine. Preserving your collection in mint condition is
crucial if these coins are to be resold at a good profit.
*(See Coin Care)
“Odd” Coins: inspite of stringent quality
control at all modern mints, imperfect coins occasionally
slip through. In the eyes of dealers and collectors,
some oddities deserve a premium.
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