First of all, why should I be able to tell you anything about coins, or collecting them?   I don’t have a degree in Numismatics, if there is such a thing, nor do I hold a post as curator of any museum collection.   I’m not one of the well-known, long-established dealers in coins or medals. My degree is in Chemistry and I’m a teacher.   I do deal in coins and have done so, in a small way, on and off  for over 25 years, but I’m a collector rather than a dealer, and more than one very successful dealer has told me that I’ll never make the grade as a dealer as long as the collector side of my character prevails. I’ve been a coin collector for over 40 years, and old habits die hard, I’m afraid.

So what do I have that these people don’t? What do the dealers have that I don’t? In general, what I have is knowledge and what the dealers have is the killer instinct. I know a great deal more about coins in general than the vast majority of dealers. They know more about particular current markets than I do, and they know how, and where, to make a buck. Please note that these ARE generalisations, true of the vast majority of dealers, but not all. Having spent a lot of time in the company of dealers, I know how they operate and I understand how and why they operate as they do. I understand, for example, why a dealer will offer you only 5 per cent of what you paid him for a coin 5 years ago. He’s not a crook. It’s just that the coin is very common, he’s already got loads of them, he can’t get rid of them, and, if he ties up any more money in that type of coin, he’s going to go out of business. I also understand why some dealers will only offer you 5% of the current value of a coin you know is rare, in good condition, and well sought-after. That one’s much easier. He IS a crook.How do you distinguish between the crooks and the honest dealers? I wish I knew. I do know, however, some things which will help. Knowledge of the coin, knowledge of the market, knowledge of the dealer. Knowledge of the coin, being able to grade accurately and knowledge of the dealer come with experience. Knowledge of the market also comes with experience but, unlike the others, it’s a (perhaps very) fleeting knowledge of something dynamic, and something of which you have to be constantly on top. Knowledge of the dealer may be gained by hard experience, which is fairly unavoidable.   We all make mistakes, but we can learn from them. Always remember, if he cheats you once, he’ll do it again, so, “Cheat me once, shame on you. Cheat me twice, shame on me". Find the good dealers, and stick to them like glue. Even better, find the good collectors. You’re likely to get better deals from them.

Grading coins. Nothing, but nothing, is more likely to start an argument than grading. To complicate matters, the Americans have their system and the British have their own system, and there are variations between the two. You MUST learn how to grade accurately and do your own assessing. It doesn’t matter which system you use, as long as you’re accurate. If you’re buying, either grade accurately, or undergrade. If you overgrade, you’re going to lose a lot of money.If the seller’s grading doesn’t agree with your own, that doesn’t matter at all. Don’t enter into any disputes about it.If he’s describing a coin as EF, you’re describing it as VF and, using your system, the price is F, don’t argue. Buy it! If it’s the other way round, don’t touch it with the proverbial bargepole.

Always buy quality coins, the best you can get or can afford. Yes, some worn coins are rare, and their condition makes them cheaper, but when you try to upgrade, you’ll find that the worn coin is much harder to shift, despite its rarity, than a bright uncirculated specimen. And take a good, long hard look at what you’re buying. It’s amazing how many obvious scratches, knocks, dents, splits, mountmarks and even holes miraculously appear AFTER you’ve bought an item. Yes, they were there before; you just didn’t look properly. I’ve done it. Lots of people have done it.   You’ll probably do it. Just try not to do it again. Look before you leap.

Assuming consistent quality, a collection of sixpences always looks better than an accumulation of miscellaneous items of currency from lots of different countries. Collections with a theme look better than a mish-mash.

Why are you collecting coins? For fun? Research? Investment? An interest to pass on to your grandchildren? If it’s for fun, great. Fire ahead. That’s by far the best reason for collecting anything. Just don’t lose the head. Remember, the rent collector or the local supermarket aren’t likely to accept payment in chop-marked 19th Century trade dollars, or counterstamped tokens, no matter how rare or interesting you know they are. Only use money you can spare.

Investment. Good material is a great long-term investment. Sometimes it’s even a good short-term investment, but that’s not so likely. Normally, you’re talking 10 years for a good return. If, however, the market in something you’re holding for investment starts to rocket, sell. Try to pick the right moment, but sell. Don’t hold on, you’ll miss the boat. Don’t hold on, thinking the market will keep rising forever. Bubbles ALWAYS burst. Always. Do you remember when silver was £28 a troy ounce? When was it? 1980? Thereabouts, anyway. Lots of people bought up mountains of silver, thinking the price has risen £25 in the last year, so it’ll probably rise £30 in the next year. Of course, it didn’t. Today, you wouldn’t get £3 for an ounce of silver, and the market will be much the same tomorrow. Other examples: the Darien Scheme, the South Sea Company, Wall Street, etc. Bubbles always burst.

An interest to pass on to your grandchildren. Don’t hold your breath. Yes, it is a fascinating hobby – to you, to me, to lots of people – but not necessarily to them. And don’t attempt to ram it down their throats. You’ll fail miserably. On the other hand, they just might take it up. But don’t assume they will.

Why do people collect coins? Some collect attractive designs. Some others have realised that it's by far the cheapest method of collecting portraits by recognised artists of kings, queens, emperors, dictators, despots, heroes and villains. To others, coins are little pieces of history, of culture.

Once you've got your collection, how do you keep it safe? The traditional method is a coin cabinet, specially constructed from a hard wood, such as mahogany, with fitted drawers and appropriately sized recesses for the coins, lined with baize. Expensive, yes, but convenient for viewing and impressive when all the recesses are full. If a cabinet is outside your budget, gold coins are effectively displayed in plastic envelopes or plastic paged albums.

Fine for gold coins. In the long term, however, not so fine for silver, copper or bronze pieces. Even your silver coins, after a while, are likely to develop a green ring around themselves if kept in plastic. The trapped moisture and air, along with nasties in the plastic, are likely to eventually take their toll. In the case of base metals, such as copper or bronze, plastic is really bad news, especially if you live somewhere warm and humid. Base metal coins must be kept dry, or they'll disintegrate rapidly. If there are any sulphur compounds in the atmosphere, you can almost sit and watch them disintegrate.

The only proven method of storage for these coins, other than a sealed cabinet, is paper envelopes. Not so convenient for viewing, admittedly, but far safer than plastic. Even here, the coins should be checked regularly for damage. The proper paper envelopes are cheap and effective, and are conveniently stored. One size does for all, right up to about crown size.

 

I'll add to this page as inspiration allows. I'm open to any suggestions for additional paragraphs, if anybody thinks it would be useful.