Beginning Buying Gold Coins

If you've never bought coins before, let alone gold coins, there are some basic guidelines you can follow to make the experience simpler and increase your odds of getting the gold coins you want in the price range you expect..and not have any bad surprises. Buying gold coins for a collection isn't a haphazard process. It takes time, planning, thought and education.

So you should become a student. When you're just starting out spend time learning about the coins, the shows, the auction and the coin experts. Never be afraid to ask questions, even the ones you might think are dumb.

Get the latest news about the coin hobby. Study market trends, coin price guides, releases from the mint, auction results. Subscribe to coin magazines and online coin sites and stay informed about the world of coin collecting.

Learn coin grading basics. Don't worry about becoming an expert...even the experts will tell you there is always something to learn. Learn how to tell the difference between a coin that is only Good and one that is Fine. Study certified coins. If you are interested in a paricular type of coin, the $20 Liberty Double Eagle for instance, take the time to learn everything you can about it, who designed it, the history, the mintage information...in other words become specialized in that coin.

Take your time and don't rush into things. If what you think is the deal of the century slips through your fingers don't worry...another deal will come along. It's far better to be conservative than to make a poor decision hurriedly.

When I began collecting years ago I bought everything I could lay my hands on. The good, the bad and sometimes the downright ugly. Don't follow my example when buying gold coins. Simply put, buy the best gold coins you can afford. You'll be far better off buying one mint state coin than a dozen mediocre ones. Find the high demand coins that are actively sought by other collectors and your coins will always be in demand.

Don't buy a coin today with the expectation that you'll sell it tomorrow for a profit. If most of your purchases are through dealers always remember you're buying at retail and selling back to them at wholesale. It takes time for a coins value, even gold coins, to rise beyond the break even point.

Know who you are buying from or buy gold coins certified by third part grading services like NGC, PCGS, ANACS or ICG. Lets face it, when it comes to valuable gold coins there are many less than savory characters out there willing to take your money and run. Purchasing certified gold coins guarantees it is a genuine coin and from the grade you'll know the likely value.

Finally, be smart in your gold coin buying habits. If you are, your collection will grow not just in value but you'll become the proud owner of a meaningful collection of American gold coins.