Visiting the Coin Shop
By Coins and coin collecting | Wednesday, 17 May 2006
Who uses a coin shop?
Whether you are a numismatist interested in coins for their historical value and the impact they have had on the world's economies or if you are a serious investor who is moving away from trading stocks and shares to investing in precious metals and artefacts then the coin shop is for you. Coin collections are incredible things to look at and can yield a very impressive profit if done correctly and for the collector and investor alike it is important that you buy them at the right price. For the investor it is also important that you sell them at the right price and the combination of these two factors will be the thing that makes or breaks your investment portfolio. Even non-collectors use the coin shop, a coin collection is something that most people will keep for life, eventually passing it down to their benefactors, and unfortunately not everyone shares the same love of coins.
What does a coin shop do?
A coin shop is like any other store, it buys and sells good to interested parties in a bid to make a profit. Trading coins is becoming bigger and bigger business in parts of the world and so the coin shop is growing in stature and number. If you are a coin collector who constantly updates your collection by buying new coins and replacing old coins then the coin shop is one outlet for your old stock you may want to consider. While a collector does not trade for monetary value, it is important that you know that a coin store will not offer you the same value for money as a fellow collector might but it will involve a quick turnaround giving you the cash injection you need for your next prize coin.
A long-term investor would use a coin shop to purchase their coins. As an investor you will already know that the store in question is likely to charge you a premium for the items you are interested in but this extra money will be worth paying if you see a gold coin in pristine condition in a coin showroom. Because of the long term nature of coin investment the small amount that you pay extra will soon become enveloped by the overall gain of your investment.
Points to remember when you visit a coin shop
Probably the most important thing to remember is that a coin shop will not be giving you an accurate market value on your piece and will only be giving the price they are willing to pay. Using a coin shop as a means to obtain a valuation is not the best idea and you should consider visiting a professional valuation company. A quick search on the Internet will give you a number of companies who offer this service.
If you are a collector then you will pay whatever you believe the coin is worth to your collection, with a smaller interest in market value than the investor. As such, the ease of using a coin shop and the advantages that they offer will probably outweigh the extra premium you are paying the store for your purchase. Most good coin shops have a well-stocked showroom that offers shoppers the opportunity to look at many pieces before making a purchasing decision. Because the investor knows that the monetary value that a coin collection can have is based on the market value for the coin, the value of the raw material and the increased value of a full collection the showroom is a superb place to get much needed information regarding an individual coin or an entire collection.
This article is part of the Coins and coin collecting articles.
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