Expert: Joe Hylas - 2/9/2005

Question
I am interested in starting a coin collection. I need some tips on how to start, where to find coins and how NOT to be taken. Are there any websites I might try for this info. I am particularly interested in a gold coin collection.

Answer
Hi Paul,

What I suggest to those who want to start a collection, and FINISH it, is this.

You have to be realistic is you want to complete a collection.  For example, if you have $25,000 to invest over a period of years, don't even think about $20 gold pieces, it's just not possible to complete with that budget.

Probably the ONLY completable series of US gold coins for the average collector is the $2.50 Indian series.  Collecting smartly is the way to go.  Although many dealers will tell you to buy the highest quality you can afford, I don't always agree with that.  As an example, take a common $2.50 Indian say 1928, in MS-63.  As with most common coins in this series, you can pick it up for about $1400.  There are probably 10 of the 15 coins in the series that you can buy for that price.  The problem is the other 5 coins.  They would set you back about $40,000.

So you see, collecting the $2.50 Indians in MS-63 can be cost prohibitive to most collectors.  However, MS-62 is mush more reasonable.  A complete set would probably cost about $25,000 for all 15 coins.  The common ones are about $500-$600 each.

I like this series because it is completable, and there are only 15 coins!  Over a few years you can have a great set and these continue to climb in value.

Remember, only buy certified coins, specifically NGC, PCGS and ANACS certified coins.  You will probably wantt o get the whole set in the same grading service also.

I have a number of $2.50 Indians available and would be glad to work with you and guide you.

Other than collecting a complete set, you may want to collect a TYPE set, that is, one of each of the 12 types of gold coins.  There are 2 varieties of $20's (Liberty and St. Gaudens), 2 types of $10's (Liberty and Indian) 2 types of $5's (Liberty and Indian), 1 $3 Gold piece, 2 types of $2.50 (Liberty and Indian) and 3 types of $1 gold pieces.

Again, unless money is no object, look at mid grade coins, say MS-63 or MS 64 for this type of set.  Another upside on these "mid-grade" coins is that as the price of coins rises, there are fewer people who can afford them, hence they may not be as liquid at certain times in the market.  This is not true if you are going to assemble a world class collection which you may spend millions, in that case, you BUY the best!

If you want to call me in the office, please do at 800-474-6960.  I'm usually here Mon-Fri 10-4 EST

Regards,
Joe Hylas
President
Omega Precious Metals