By Dr John H. MacMillan

The numismatic hobby is indeed “the hobby of kings” as a virtually unlimited amount of money can be spent on rare items if finances permit. Wealthy collectors such as Col H.R. Green, King Farouk of Egypt and Louis Eliasberg had no trouble acquiring rare items when the became available. Collectors of more modest means must focus their interest and “buy smart” or else risk financial difficulties.

Coin collecting can become addicting, and many collectors go over their budget on impulse purchases or spending sprees. It is imperative that you set a maximum amount you will be spend per month or year. This collector has found that on an amount of $1500-$2000 per year rapid progress is possible in many specialties for several years, provided that the periods are from 1850-present and the grades are extremely fine to proof. In today’s age this amount of money could be spent on a single computer or set of golf clubs!

The collectors advantage is that the collection will at least give a partial return of his money in the future, as compared to other items that depreciate to zero. The article is written from the perspective of a modest means collector, who wishes to enjoy his coins primarily from an artistic and historical viewpoint.

Of course he or his heirs will want to obtain at least a modest return on his hard earned money in the future. I will present the “buying smart” strategies from the context of a U.S. type set collector, but these thought processes apply to other collecting specialties such as date collecting, World Coins or ancients.

Getting started

Getting started as a U.S. type set collector is quite easy if one desires a set of circulating U.S. coins. One may pull nearly uncirculated examples from change and upgrade by ordering proof sets from the U.S. mint at less than $20.00. As many state quarters are circulating, this phase can be quite a lot of fun for several months. After the fun phase the new type collector can focus on earlier twentieth century issues. (more…)