If you want to make money by investing in coins you probably should read what follows. If you’d like to avoid losing money by investing in coin you absolutely need to read what comes next.

Before we get started let’s go over a few simple and yet important rules:

1. Historically, most people who invest in coins end up losing money. Some lose a little and others lose a lot. If you don’t believe me ask someone you know who has invested in coins and then sold them. Most will say they came close to breaking even. We all know what that means.
2. The perfect time to sell an investment may be the day before you bought it. At least temporarily, every investor should be prepared to experience how it feels to be the ultimate consumer. Don’t think you can beat the system because you will only buy great deals at wholesale levels. That’s the kind of stuff the intelligent investor knows to avoid. The greatest bargain is never a bargain until it is sold.
3. The surest way to lose money is to neglect your investment. The time when one could fill a bank box with coins and set the timer on ten years ended a decade before the investment hucksters started recommending the practice. Investing in coins is a lot like raising a child. If you don’t pay attention and devote quality time to the project you’ll in up with an unmanageable monster.

Great Buys for Under $100

These picks are not in rank order but listed according to their appearance in the Charlton Standard Catalogue.

1861 & 1864 Nova Scotia Half Cents

Where can you find an odd denomination two year type coin with a total mintage of less than a million pieces that was minted over 140 years ago—THAT CAN BE HAD IN NICE CONDITION FOR LESS THAN TWENTY-FIVE BUCKS?

My choice would be to buy every problem free example I can find up to and including the Extremely Fine grade. Problem free, regardless of the grade means nice medium to dark brown coins with no evidence of corrosion, heavy marks or rim problems. If a coin appears to have been cleaned then pass regardless of the price.

The trick here is to buy in quantity and build a nice little stash. Accumulating 100 coins in Good to EF could be challenging fun. Prior to the publication of this article I’m guessing the patient and persistent investor probably could have eventually found a 100 assorted grade coins for less than a total cost of $1000. Plenty of opportunities are still available as this article is only being published on the Canadian Coin Reference Site.

Important note:
I’m a coin dealer. To maintain some level of integrity, I want to make it clear that I have no interest in doing business with anyone who reads this or any other of my investment related articles. If you decide to take my advice and buy some of these coins please don’t contact me looking for them. There are plenty of other dealers to do business with.

1907-H Cent
There are few series of coins from any country where the obvious key date remains affordable. I’ve liked the 1907-H for the last 45 years and I’ve NEVER bought one and then sold it for a loss. I wish I could say that about even a few dozen other Canadian coins.

This is another one of those coins that is a wise purchase in every condition up to and including the Extremely Fine grade. The supposed spread in value between EF and AU is foolish and a major trap for any investor. This is the way I’ve found the Canadian system of grading coins to work in the marketplace. When you go to buy the seller wants AU money for a nice EF coin. When you go to sell the potential buyer is quick to remind that Canadians use strict grading standards and what you have is a marginal EF. Unless the coin is in a grading service holder the wisest thing any investor can do is to avoid buying coins being offered as AU. That suggestion alone should save you ten times the money you paid to read this article.

With the 1907-H, again the goal is to acquire multiple problem free examples. A nice medium tan color would be my choice. I’m picky when it comes to the 1907-H. No heavy marks, no stains or corrosion. This is a fun coin because decent examples can still be found mixed in with other accumulations. It seems those who aren’t paying attention can easily overlook the important little mintmark. It’s an excellent coin to look for at flea markets and like venues.

What To Pay?
If you would like to risk money you can afford to lose and invest in coins but are new to the game you need to know how to limit your risk. When you can find it, the most valuable pricing data tends to be advertised dealer buy prices. Such information is rare, but worth looking for. It doesn’t hurt to ask dealers what they might be willing to pay for certain things. Keep in mind that most of them will be conservative when offering these estimates. Above all, shop around!

As an investor, it’s okay to be a little greedy. The surest way to experience failure is to be both greedy and lazy. If you can’t be bothered to learn for yourself about demand, availability and prices then please leave your money in the savings account. My standard advice is to always try to pay as little as possible and to know when the smartest move you can make is to pay a little too much.

1925 Cents
There are few sure things in the coin marketplace. This coin is one of them. Collectors have long been attracted to the 1920-1936 George V cents and this interest will continue to grow. This is a popular entry level series and yet also attracts the serious and experienced collector. That’s a positive and unusual combination.

I’m picking the 1925 over the 1923 because in my experience this date is actually a little tougher to find but sells for slightly less. Making this statement brings to mind that you should understand my recommendations are highly subjective and based on my personal experiences. Other dealers and numismatists may well have entirely different opinions. They are wrong but you should still listen to them. If everyone thought the same as I do about the coins on my list then they wouldn’t be on my list. I’ve bought and sold hundreds of 1923 and 1925 cents. I’ve found the 1925 turns up a bit less often and is usually easier to buy at a favorable price.

For the 1925 cent I prefer the VF and EF grades. My tendency is to look for solid values when buying the VF coins and I’m prone to pay a bit “too much” when I encounter a strict EF coin with medium tan color and problem free surfaces. I like these grades because I’ve never found such coins to be plentiful and the price in this grade range is still affordable for the casual collector and remains appealing to the more committed person who wants a nice quality set. It’s always a wise policy to buy the key and semi-key dates in any series in at least one grade above the average encountered condition.