Collecting coins can be fun for personal reasons, a great investment, and a fun new hobby. If you are thinking of starting a coin collection, there is no better place to start than at your local pawn shop. Keep reading to learn more about the process, and then contact South Bay Jewelry & Loan at (310) 371-4571 or stop by with any questions.
Start with a Budget
If you want to start a coin collection, the first step is to determine what your opening budget will be. This will be the amount you are willing to spend to acquire the first few pieces. You can find coins at any price point you imagine, from less than $1 to millions of dollars.
Do Not Buy Too Much of One Type of Coin
Any investor will tell you how important it is to diversify your portfolio. What does that mean? It means not investing all your money into one thing. If you do, and the one thing you have chosen to invest in becomes a bad investment, you will have lost your entire investment.
This principle is relevant to investing in coins, too. If you invest in one type of coin, even choosing to buy only gold coins, and the market fluctuates in the wrong direction, it could wipe out the value at once. On the other hand, if you invest in many types of coins, a market fluctuation is unlikely to have a significant impact on your overall collection.
Check Out a Pawn Shop
Once you have an idea of what you want to spend and you know that you want to diversity, we recommend you start at a pawn shop. Why? Because we have a wide assortment of options. Other coin sellers might focus on a specific type of coin, but you want access to as many options as possible. That is what we can offer at South Bay Jewelry & Loan.
Visit a Coin Show
If there is a coin show in your area, then you can check that out too. Try to visit as many as you can and leave your wallet at home the first time. It might sound counterintuitive, but the truth is that at your first show, you are likely to see lots of things that interest you. You will also meet many people who are in the business of trying to sell coins to you. Their opinions cannot always be trusted.
Take notes at the coin show of what you would have liked to buy. Then do your research to find out if you would have gotten a good deal or not. This is a great learning experience that costs you nothing but can give you a wealth of information.
To get started to coin collecting, just stop by South Bay Jewelry & Loan or call us at (310) 371-4571 to learn more.
