The Dangers Of Coin Collecting
There are several dangers or pitfalls to avoid when collecting coins. Especially if you are concerned with their value as an investment. They include fake coins, inaccuracies in grading, dangers in buying coins on the internet, and damage to coins because of improper storage, not knowing the right way to store coins.
Fake Coins and Counterfeit Coins
There is a real danger in buying coins because of forgeries. One recent fake coin scheme is the fake American Silver Eagle, which has been produced in China lately in great numbers. You need to perform several tests to the silver eagle if you are thinking about buying one. Compare the coin to others, under magnification. Compare what the surface looks like, and the reeding along the edge. Compare the weight of the coin in question with the official specifications for what the coin should weigh. If it is a forgery, it is very difficult to get the weight right on. Other coins recently known to be faked are U.S. Trade dollars, Seated Liberty Dollars, Japanese Yen, and gold coins.
Coin Grading Dangers
On common way for a coin seller to try to make more money on a coin is by mis-stating the grade of the coin. Coin grading today mostly uses the Sheldon Scale, which is a numeric grading system going from 1-70. Visi Wikipedia for more details about coin grading. There are several grading services that coin collectors can use to have their coins graded. The big ones are PCGS, ACCGS and NGC. These services charge a fee for grading, then put the coin in a “slab”, which certifies their grade. However, some counterfeit coin holders have been discovered.
How To Store Coins To Avoid Damage
Coins must be stored properly to avoid damage. They can oxidize, or rust, forming “pits” if stored improperly for a length of time. They should be stored in a temperature-controlled environment, which is not subject to temperature or humidity swings. Silica gel can be used to limit humidity in a coin storage area. Coins should also be stored in individual containers, so they cannot touch each ther. Coins should not be handled by people, because of the oils on your skin. If you must touch a coin, wear coton gloves. Also, do not clean coins yourself, as this can degrade their value. If you must clean a coin, bring it to a dealer and have them do it.
The Dangers of Buying Coins on the Internet
Buying coins online is very risky. You cannot inspect coins personally, so you cannot tell is a coin is a fake, or more commonly, if it isn’t graded properly. The most important thing you should look for when buying coins online is the reputation of the dealer. If you are looking at coins on eBay or another auction site, get the dealers name. Look for the dealers website, and do a search for that dealer on Google, or another search engine. See if you can find out how long they have been in business. Check the Better Business Bureau, either online or in the city that the coin dealer has its business in.
Look at the dealers return policy. Reputable dealers offer a return policy. This is your guarantee that you agree with the grading of the coin. If the dealer is reputable, and offers a return policy, you are probably safe in buying from them. Nothing online will be as reliable as you shopping at a local dealer though. There you can see the coin, and know exactly what you are buying.
Despite the dangers and risks of buying coins, coin collecting overall is a very low-risk venture. Most collectors will buy hundreds or thousands of coins in their lifetime without ever coming accross a fake coin or a problem dealer. Coin dealers, like other merchants, achieve success by keeping customers happy, and the ones that stay in business are the ones that benefit their customers as much as they profit themselves.
