Category: smelt value

Posted on

How can I make money as a coin collector with no experience or knowledge?

Coin collectors don’t make money by collecting coins – they make money when selling all or part of their coins; sometimes to profit, sometimes to liquidate part of a collection, sometimes to pay bills.

Collectible coins are an accumulated or acquired asset. You are in a position to make money with coins when you can sell them for more than what you paid.

Most collectors (myself included) have a fondness for coins and collect for fun. If you approach coin collecting as a business, You can make money, but you need to learn the market. Your coin collection becomes inventory, you need to manage it, track your costs, advertise, and buy and sell to build up your business. Some coins may have value but not sell well; a downturn in the market may cause a downturn in your business.

If you are truly interested in coins as a business (and you need to treat it as such) I would suggest educating yourself as to what coins can make a profit, which coins sell quickly vs. sit on a shelf, and what kind of investment you want to make in your coin business.

Making friends with a local coin dealer, and going to shows is also helpful – their experience and advice can be invaluable.

To recap:

  • Decide whether you want to be a collector or coin dealer/trader
  • Treat coin collecting like a business, not a hobby
  • Learn as much as you can about grading and coin values
  • Track prices in the coins you want to inventory and sell
  • Make friends in the business, you will benefit by knowing them

Books that may help:

A Guide to Coin Collecting: A Guide to Buying, Selling and Finding Coins Online (Amazon)

Pleasure & Profit: 100 Lessons for Building and Selling a Collection of Rare Coins (Amazon)

Websites:

Dumb People Can Make Money in Coins

How to Make Money as a Coin Collector

Get the Inside Scoop on Buying and Selling Coins

YouTube video (one of many):

Thanks for the A2A! (This question originally appeared on Quora)

I wish you the best of luck in your numismatic endeavors!

Disclaimer: I blog about coins on my site, Pocket Change Riches

Posted on

I have $50,000 to invest. What can I do, other than buy property or stocks?

$50,000 may not buy you a money-making property without a substantial mortgage, which limits your profits and increases your risk if the market drops.  Stocks also carry a lot of volatility, which could make you nervous.

If you don’t need the money right away, consider investing in coins, which have collectible value and smelt value based on the coins composition.  They will never be worth less than the value of the base metal.  For silver coins: U.S. Silver Coin Melt Value Calculator.

American Silver Eagle coins are available on Amazon and Ebay, or your local coin dealer.

Coins can also be a great hobby, and you can give them as gifts and pre-inheritance to your heirs.  You can also tell people that you are training to be a numismatist (coin collector).  Many people carry a “lucky” coin with them, as a talisman of good fortune.

The Morgan silver Dollar is the most collected US Coin. Available on Amazon,

Or on Ebay.

I used silver coins here as an example.  You can get gold coins as well.  with $50k you can get approx. 2000 1 ounce silver coins, or about 40 one ounce gold coins.  If you keep them at home, 2000 coins weigh a lot (approx 125 lbs) and are harder to steal (try running with a pillowcase filled with over a hundred pounds of coins);  you can also diversify more with 2000 coins vs. 40 coins.  4 pounds of gold coins are easier to manage than 2000 silver Eagles. In either case you may need a safe -You can get a good one for your collection on Amazon.

You can also display your coins, and take some pleasure in their acquisition.
A type of coin I enjoy collecting is the Silver Strike, a Casino $10 token that is highly collectible – and most casinos no longer distribute them.  I get them from casino’s I have visited in Las Vegas,  or on EBay.  Newer ones ar clad in silver; older ones have a silver center that is .999 silver, weighing approx. .6 troy ounces.  There are many available from casinos that have been demolished or bought out, making them even more valuable.  Here is the web site of the Silver Strikers Club – Home Page.

Sam’s Town .999 Silver Strike, Many collectors trade them on Ebay. Newer ones are “clad”, and the centers are no longer .999 silver.

Aladdin Casino Silver Strike.

The Aladdin has closed, making this a nice piece  of “old” Vegas to have in your collection! (The Aladdin is now Planet Hollywood).  Aladdin Strikes on Ebay.

Coin Collecting supplies and Books on Amazon


Black Silver Strike Display Insert for 12 Silver Strikes Casino Coins (Not Included)

silver strike casino coins and display cases

(they tend to be heavy, so be careful when hanging them on the wall)

Best of Luck – These are just a few options for you – find coins you enjoy and have fun with it!  You can even get coins with Koalas and Elvis! (Links to eBay) Also post a comment letting us know what you did, and how it is working out for you! Repost and share with your investing friends! – Alan

The Last Word:

Posted on

Where can I get my coin collection converted into cash?

By Alan Chenkin, Novice coin collector and hobbyist
Converting coin collections into cash is a sometimes necessary event that requires some caution, to get more than the face value of the coins.
Collectible coins have a smelt value, a face value, and a collectible value.
You have several options. I would recommend calling in a coin dealer to estimate the value of your coins. some may be valuable, some common, and some just worth their “Smelt”[1] value.
Where to Sell Your Coins – Cointrackers

Several caveats;  Don’t clean the coins, Keep them together in some boxes and handle them with white gloves or a sweat sock to keep finger oils off the coins.  Take pictures of them to send to a remote appraiser and to establish that you had them (proof of ownership).  If you are going to keep them, organize them into coin flips and tubes, and make notations on the contents, condition, and dates.  Consider getting a safe, to keep them together and secure.  (coins can weigh a lot, too – keep that in mind).

Selling to a reputable dealer, collector, (or pawn shop) is the fasted route to liquidating your collection for cash. Keep in mind that these buyers are looking for values below market, to reduce their risk and make a profit on the eventual sale; you may be offered between 10 and 70% of the retail value of your coins.

 

If you have the time and ambition, you can use the internet for valuing your coins, and sell them on your own. Craigslist, EBay, and some of the popular coin sites (forums and for sale sections) are your best options.

 

There are even books on this topic:
Many public libraries have books on coins and periodicals on prices, that you can access for free.
I buy and sell coins on EBay and from individuals, at estate and yard sales. It’s a fun hobby for me, especially when both parties feel they got a good price!
You will need to understand coin grading, as there are many valuations for coins based on condition (grade).  Circulated coins (pocket change) are not worth as much as graded and certified “Mint-State” coins.
If you have the time, and enjoy coins, sort through them and get the valuation of each coin – so you can have a good idea of what the collection is worth.
I use eBay for that a lot, especially with older coins.
Best of luck – Please post a response and let me know how you fared!
Thank you for reading my blog! Feel free to share!
Footnotes