Coin collecting is an intricate art, and like many similar activities, the industry has its own myths, some of which could derail a coin collector from the path of attaining that envy generating collection. Legitimate Canadian coin dealers will discourage the proliferation of these myths. In other words, a dealer who supports these myths is likely to either be a non-expert or a shady dealer. Either way that’s not the sort of person you want to be dealing with, especially when it comes to the delicate issue of those precious collectible treasures.
The history of coins goes back all the way to 200BC when they were first made in Lydia. Without knowledge of these myths and the truths surrounding them, you may pass by valuable coins or waste your money on coins that are worth far less than their price. This knowledge could even prevent you from damaging your own precious collection.
A Hobby for the Wealthy Only
In the eyes of many outsides of collectors’ circles, rare coin collection and study, or Numismatics, is a hobby reserved for wealthy people in the highest class of society. It is true that throughout history it was the very wealthy such as kings and queens who collected rare coins but the evolution of the field means that today pretty much anyone can get involved. It is a great way to diversify your investment portfolio and buyers are free to invest as much or as little as they desire or can afford.
Age and Coin Value
One of the most popular misconceptions about coins is that there is always a direct correlation between age and worth. The truth is that sometimes coins do increase in value as they age but for some coins, this is not the case at all. It is not age but rather the forces of supply and demand that affect the value and price of a coin. Essentially, therefore, a coin that has more collectors seeking it will attract a higher price than one that is hardly sought after. Of course, this also has a lot to do with mintage. A coin with a higher mintage is likely to be easily acquired and therefore less valuable than one with a lower mintage which will naturally be harder to find.
All that Glitters is… Well Precious
It is easy to get sucked into the misconception that the cleaner and shinier a coin is, the higher the price it fetches will be. This misconception has cost many novice collectors thousands of dollars as in a bid to present a pristinely clean coin, they proceed to cleanse and polish the piece sometimes using abrasive substances and tools. Legitimate Canadian coin dealers will always advise against novice coin cleaning and tell you they prefer to examine coins in their original uncleaned state. A word to the wise, coin cleaning is best left to the experts.
What You See is What You Get
Many people believe that the face value on a coin equates to its real value. Expert coin collectors, however, know this isn’t so. Some rare coins that were issued years ago with small face values, appreciated over time and have now become priceless, which brings us to yet another misconception regarding the value of rare coins. The idea that a rare coin will always appreciate in value is yet another myth that you need to bear in mind.
Online Shopping is the Way to Go
It may be more convenient to shop online for most things, including coins. But many unscrupulous dealers hide behind the shroud of the virtual world. When it comes to online investment in precious coins, it is best to stick to reputable Canadian coin dealers like Colonial Acres.
These and other myths stand between many aspiring coin collectors and their dream of acquiring that perfect collection. The more aware you are of these and other coin collection myths, the more successful your efforts are likely to be.