7 lessons in collecting: Invest in education

author Robert Shippee ’ s modern book on rare coin investing draw parallels between two of his key interests : rare coins and golf. How does person successfully invest in rare coins ? To answer that question, one has to first define what achiever is. Is it just monetary returns, or is achiever measured by something larger ?
Do you want to put together a meaningful collection or equitable beat standard malcolm stock indexes ? Do you want to have fun while putting together a collection and learn about the history of numismatics, or are you content to let others do the study for you ?
Skills you can build on

Investing in rare coins is not easy. It takes dedication to learn respective aspects of coin collect that are constantly changing : supply, demand, curio, grade, and understanding how to maximize value when buy and betray. These are skills that take years, if not a life, to dominate .

thankfully plenty of helpful resources exist in the coin playing field to help collectors willing to put in the legwork to maximize the investment revert on their collection, including a new book by Robert W. Shippee recently published by Whitman, titled Pleasure and Profit. In it, Shippee discusses his pursuit over the naturally of more than a ten to put together a type plant of each major invention type from copper half cents to gold $ 20 double eagles, from 1793 to the give day. It ’ s a frank, candid tome filled with anecdotes that collectors can learn from .
In reading this book, some themes prevailed and specific coins are used to illustrate these. The reserve provides a rare opportunity to get inside a collector ’ sulfur fountainhead. Some coins were winners in terms of profit, others were losers, but the collection overall was a achiever. According to Shippee ’ second calculation, the collection — which he called the Waccabuc Collection after a placement in New York — sold for $ 1,405,136 at a Nov. 13, 2007, Stack ’ randomness auction. Shippee calculated that the 138-lot sale represented a addition of 39.4 percentage over his initial leverage price ( or a compound return of 10.2 percentage annually over the holding menstruation ) .
Lesson No 1: Invest in education first
In the foreword to the reserve, hobby legend Q. David Bowers writes, “ Building a working library is considered ideal by many coin buyers, but reality is that only a minor share do so. ” He adds, “ It is curious that, say, $ 1,000 to $ 2,000 spent on a shelf of useful books will repay its cost many times over, but most buyers would preferably spend the money, and quickly, on a $ 1,000 or $ 2,000 coin. Knowledge is the key to success. ”
Learning about coins gives a buyer a distinct advantage, Shippee wrote. “ Beginning about 20 years ago, I began to get serious about building a meaningful coin collection. I started going to auctions, buying coins, and buying books ( sadly, in that decree ). I didn ’ thymine however have a august imagination of what kind of collection I wanted to build. ” Reading and learning helped him refine his eye, taught him the stories behind the items that he was purchasing, and helped him understand proportional rarity, both of a mint within a given series and of a mint ’ second rarity in broader terms .
education as a first footfall will help a collector narrow a concentrate, and Shippee suggests that an easy way to get inspired is to flip through the pages of A Guide Book of United States Coins ( better known as the “ Red Book ” ) since, “ one of the great joy of mint collect is that there are no rules telling you what to collect. The possibilities are about dateless, and there is no right or wrong way. ”
Shippee picked a type fructify — where a collector acquires a single mint representing a purpose type — after experimenting with a few different series including amber $ 3 coins and Trade dollars.

For him, a type set represented opportunity : “ Every item in a principal ’ s inventory might be the right objet d’art for your type collection, and every page of an auction catalogue offers an opportunity to fill a trap in your solicitation or improve upon one of the coins you already own. Every specialist book and numismatic article has some relevance when you ’ re trying to complete a type collection. ”
Educating yourself on how coins were struck is a smart investment in one ’ south time and energy .
It may cost a short more to buy a well-struck model of a type that is typically decrepit, but by being selective, you can own coins that will appeal to more discerning buyers .
More from the “7 lessons in collecting” series:
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