Hello! collecting on a small budget

[Guest tac73]

Howdy, relatively new to collecting numismatically as i've been grabbed by the collecting bug because i've been buying bullion. Now i'm on a tight budget, have a mortgage and mouths to feed and hardly have anything left over for spending on fancies right now. So my budget is a mere £100 a month at best.

I'm also interested in collecting what I can as a semi-investment, albeit a small one. Do you think it's better to spend that £100 on several lower end coins or save up the 2 months for one nicer high end coin. What will re-sell quicker?

[Rob 3,152]

Howdy, relatively new to collecting numismatically as i've been grabbed by the collecting bug because i've been buying bullion. Now i'm on a tight budget, have a mortgage and mouths to feed and hardly have anything left over for spending on fancies right now. So my budget is a mere £100 a month at best.

I'm also interested in collecting what I can as a semi-investment, albeit a small one. Do you think it's better to spend that £100 on several lower end coins or save up the 2 months for one nicer high end coin. What will re-sell quicker?

Anything will resell instantly - if the price is right. What you really mean is what do I buy which will appreciate more quickly than a second item. Not a good idea, as you are setting the price you are prepared to pay without the necessary knowledge to make an educated judgment. Buying bullion as an investment is a simple matter of trying to anticipate the gold price. Buying coins that cost many multiples of their intrinsic metal value and then sell them at some unspecified date in the future for an even greater multiple requires a crystal ball which you or I don't have. If you are collecting coins as a hobby, then there is some leeway in the price paid as you are doing it for pleasure. But please do not try to combine investment with pleasure, because one will take priority over the other. Don't treat coin collecting like a standing order to a savings account. Read around a bit, find out what appeals, see how much the items are selling for and only when happy should you buy. Information is the key to happy collecting, and I might add, investment.

Edited November 15, 2012 by Rob

[Peter 615]

How true Rob.

Welcome Tac

Read up on a series that fascinates you.Look at Ebay,auctions,dealers lists and make a reasoned decision.

Visit a coin fair.

The internet is a great learning resource but I still like a good book.

I've been into coins for 40 years and my mistakes are minimal but I still make them.

My main passion is early copper(post 1672) there are chancers on Ebay who list key dates at stupid prices.Some times I slip a similar coin in on a 3 day listing undercutting the listings.I get bites. Keep your money in your wallet until you know your subject.

My last tip is buy what you REALLY like the chances are others will like it too.

[scott 144]

do some Research, manage your budget and visit ebay once you have a focus and know what you are looking for. have a look there, there is usualy the odd bargain to be had.

but it does depend on focus, some varieties can be found for very little cash at dealers or at car boot sales (talking worn pennies/halfpennies/farthings), well it depends on the dealer, generally the average sellier will not know of varieites or bother checking through worn stuff either. so a £50-100 coin can be found for mere pence.

a nice coin will resell, but if you pay top whack, it won't make a profit. so look out for varieties of things, those are your money makers.

[Peckris 579]

Sorry to step on scott's heels (well, he knows his stuff and can spot a rarity in a junkyard at 50 metres!) - but I would say in answer to your question "It's always been advised that you should buy the highest quality you can afford - so paying £200 for an EF George III Crown will not only bring in a coin that's nicer to look at and give more pleasure to you, but also be more readily saleable in the longer term, than 10 George III Crowns in Fair condition."

[TomGoodheart 403]

What everyone else said!

Basically the differential between lower grade coins and the better ones seems to keep increasing. Which means, as Peck said, buying the best example you can will normally be the best course.

The problem being, learning what grade (condition) a coin is, rather than what someone (particularly on ebay!) claims! And while some people do collect anything and everything, it helps the learning process if you narrow down the types of coins you are looking for.

Some types of coins can be had quite easily within your budget. Very nice copper pennies for example can be had for £50 to £300. Whereas silver crowns will, in general, be quite a bit pricier and when you get to Civil War siege coins ... well, you'll need to save your pennies a bit more! You need to buy something that appeals to you. But it can also be frustrating if you can only afford one or two purchases a year. (My budget is so small, I'm in that situation! I'd be happy with £100 a month!) So your choice might need to be a compromise.

So, despite the temptation, I'd suggest not rushing in. Read a bit, borrow a coin book from the library, or buy one from Chris who runs this site. Decide what you like and check prices to see how many you can afford. And remember, there's a wealth of knowledge from members here, all to be had for free. Ask questions, I've found it's the best way to learn.

[Peterkin 0]

Howdy, relatively new to collecting numismatically as i've been grabbed by the collecting bug because i've been buying bullion. Now i'm on a tight budget, have a mortgage and mouths to feed and hardly have anything left over for spending on fancies right now. So my budget is a mere £100 a month at best.

I'm also interested in collecting what I can as a semi-investment, albeit a small one. Do you think it's better to spend that £100 on several lower end coins or save up the 2 months for one nicer high end coin. What will re-sell quicker?

Don't. Coin collecting is coin collecting, only do it for the enjoyment of collecting. Its not an investment. If you're happy with bullion as an investment stick with it. Good luck with the bullion investing.