How Valuable Coin Collectors Can Better Budget To Increase Monetary Opportunities
Collecting rare and valuable coins can be an expensive hobby. Enthusiasts might spend hundreds or thousands or even millions of dollars on the priciest coins. As with any pursuit that involves money, budgeting the right way plays a big part in the ability to buy valuable coins — and potentially turn them into even more money.
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Without the right budget plan, you might miss golden opportunities to purchase valuable coins you prize because you don’t have the funds available. The key is to keep enough funds on hand to make that quick strike when the right coin comes on the collectibles market.
Start With Lower Grade Coins
As a buyer, your budget plan should include seeking out rare coins in less-than-pristine condition — especially if you are fairly new at the hobby. Because these coins have more wear or imperfections than high-grade coins, they cost less. This makes it easier to build your collection while still adding coins valued by collectors, according to a blog on the Blanchard website.
Meanwhile, the money you’re saving can help you afford higher-grade coins when one comes on the market.
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Develop a Purchasing Plan
Another good strategy is to develop a purchasing plan. CoinWeek recommends having a specific coin or two in mind that will bring the most value for the money. This requires research on which types of coins tend to be most favored by dealers and collectors, which guarantees a steady rise in value. Examples cited by CoinWeek include a Seated Liberty dime or quarter from the 1840s in “very fine” condition or certain 19th-century Shield nickels in a similar grade.
Just make sure you are selective in the coins you buy to avoid winding up with coins that don’t align with your interests, goals and budget constraints. Blanchard suggests focusing on a particular series, theme or historical period.
Unload Surplus Coins
A purchase plan should also include unloading surplus coins to build your cash reserves. This should be easy enough to do. As CoinWeek noted, you can sell or consign your unwanted coins to dealers, sell them on eBay or place them on bid boards at coin shops. Once you have cleared out excess coins, you can put your money toward more valuable coins that will enhance your collection.
Even if you don’t score a huge profit on a particular sale, small profits can go a long way over time. CoinWeek advises adopting a $1 savings plan that involves amassing dollar bills you earn from sales. You might find that stack has grown into a few hundred dollars after six months or so.
Attend Coin Shows
Attending coin shows is a smart strategy for budget-conscious collectors. These events offer a “diverse array” of coins, according to Blanchard, and provide opportunities to find unique and often undervalued pieces. And because you are interacting directly with dealers who are there specifically to sell their coins, you can usually negotiate prices below market rates.
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