Expert: Joe Hylas - 10/28/2009

Question
Hello, a few questions from a "wannabe" collector:
What advice would you give a new coin collector?  So far I have concentrated on state quarters, having purchased a 2000,2007,and a 2008 pr69 flag set as well as a few single pf70 state quarters.  I plan to add to these as my budget allows.  I will be able to spend $30-50-xxx as funds allow;  I never anticipate being able to buy any single coin over $300.  
I also have an interest in coins with a train or locomotive on them as I am a railroader by trade.  I see a few of interest produced by the Royal Canadian Mint.  The coin books/magazines that I have don't seem to cover Canadian commemoratives.  Is there a good source for information on non-USA issues such as those from the RCM or Perth mints, etc.?
Finally, If I were to visit a small regional coin show, will I find coins in my budget or will most coins be for collectors with large budgets?  Any coin show advice/rules/etiquette for newcomers?  Any insight that you (or other experts) may have is greatly appreciated.

Answer
Hello Rhett,
Welcome to the hobby!

I deal primarily in US coinage and I know of no US coins witha railroad theme.  However, I believe that the Canadian mint did produce one in 1981 and one in 1986.

As for advice about collecting, there are 2 ways to approach this.  Certainly the statehood quarters are nice and easily collected.  However, millions were made and with the exception of a few pieces, all are readily available in high grade.  That being said, with such a large supply available, will they appreciate in value?  Of course if that is not your goal, and you simply want to collect coins, continue on this path.

Most seasoned collectors view their collection as a store of value as well as a wonderful hobby.  My first word of advice is to pick a series of coins that interest you and learn about them.  Get a copy of Photograde.  Learn how to grade the coin so when you see one at a show you will know if it is accurately graded.  Many small, local shows will have people just like you selling their duplicates, proof sets, uncertified single coins, etc.  Many of these "dealers" are not accurate graders and it is in your best ineterst to be able to pick out the deals and avoid the overgraded coins.

My advice to "newbies" is to start with Morgan dollars, even in circulated grades.  They are affordable, usually in the $17-25 range for nice XF-AU coins.  MS-63 common dates can be had for $35-40.  They look nice and contain 3/4 oz of pure silver which makes their melt value at about $12.  That is a small premium for a collectible coin.  Also, rarely is a hoard of uncirculated Morgans unearthed.  With modern coins like statehood quarters, millions were minted, and still available.  I would rather pay $30 for a Morgan that contains $12 worth of silver than a quarter for $30 that has no melt value and of which millions are available.

As for etiquette at coin shows, don't seem too interested in anything you see.  Believe half of what the dealer tells you until you confirm it.  While most dealers are honest, all it takes is one bad apple to fleece you and you will despise the hobby.  When you see coins in holders with flashy writing and incredible statements as to rarity, it is probably exagerated.  Get a copy of the Gray Sheet.  You can get it online, downloadable for a few dollars.  I get a package for $39 that covers all issues and it is good for a couple of months.  This will show you what dealers pay approximately for the coins they sell.  Expect to pay somewhere over those prices but certainly not 50% or more.

Good Luck!

Joe Hylas
www.AllCoins.US
Omega Precious Metals, Inc.