Starting A Business Selling Old Coins

Currency doesn’t just change in form, but also in value, and when one coin is rendered outdated and replaced with another, the old coin retains its form of value, with the most valuable old British coins being priced at around £700. Some old British coins are so useful that, being a capitalist country, businesses have propped up to create a collection and sell.

But how do you create a sustainable, profitable business selling coins? In this guide, Real Business will outline how to do just that, including conducting analysis and identification.

How Do You Make A Profit Selling Coins?

If you want to sell coins and make a profit, you need knowledge about the industry. With the right customer base and competitive, but fair pricing, you can make a profit selling coins. Whilst gold and silver coins are obviously valuable due to their material makeup, they are not the only coins of value:

• Rare coins – Finding rare coins through various methods, whether through metal detecting or sorting through rolls of coins purchased from banks.
• Assemble collections – Finding individual less valuable coins that are part of a set, such as commemorative or error coins, and selling as a whole.
• Buy low, sell high – Finding undervalued coins offered in an auction house, online store or something similar, and selling at their true value, or keeping it to appreciate over time.
• Coin grading and certification – Submit coins to grading services to enhance value through verified authenticity.
• Capitalising on trends – Monitor the market for new trends, such as newly discovered errors or world coins.
• And more – There are many forms and ways to collect coins, but the above are the most common.

A big part of creating an old coin business is developing relationships and connections with individuals and other coin dealers around the world, not just in the UK. This allows you to access a large variety of coins coming from different historical timelines and cultures, widening profit potential by a huge degree.

Understanding The Coins Industry

Gold and silver coins are not the totality of the marketplace, but they are most certainly the most valuable coins on the market. Most collectors focus on these coins in particular, including startup businesses, because they are globally recognised as valuable, and you will find many who will buy coins of this type, either outright or via an auction house.

For success in this market, you will need to gain an understanding of some of the following aspects:

• Supply and demand dynamics – The fundamental of economics is supply and demand, and that’s no different for coins. From tin to gold coins – a combo of rarity, demand and historical significance will determine the value of your coins, provided they are in good condition. Limited-mintage coins are a good example of this.
• Historical pricing trends – Analyse past sales to see which coins have appreciated over time. Identifying coins that appreciate opens up opportunities for investments, and large gains in the long run.
• Customer preferences – Collectors favour coins from specific eras or unique designs, more often than not. Those in the business of identifying and selling coins long enough to become masters may identify what coins may become highly valuable over time.
• Coins types and grading – Grading services identify a coin’s condition officially, and this mark almost always enhances a coin’s marketability.
• Buying and selling strategies – Knowing when and how to buy coins from dealers, and selling through an auction house or online platform sustainably and efficiently requires strategy and networking.
• Bullion coins and precious metals – The value of bullion coins is closely tied to the market prices of gold and silver. Monitoring both markets informs investment decisions.

How To Sell Old Coins Or Collections

The following are some pointers on the best practices of coin-selling businesses.

Inventory

To sell your coin collections, you first have to build your inventory. That inventory should be diverse, aiming for a variety of types, eras and price points to appeal to a range of buyers. There are many coins from different periods that are of high appeal, such as the Pre-decimalisation coins of the Victorian Era, or the Modern Commemorative Coins of the 21st century. That being said – always prioritise quality.

You will need to focus on the following things:

• Reputable dealer sourcing – Source coins from trustable and known dealers/sellers in the market, using databases like the British Numismatic Trade Association (BNTA) to identify trustworthy dealers.
  • Auction Houses – Auction houses, such as Stacks Bowers Coin Auctions, offer diverse coins – not to mention objectively the most rare coin types in the world.
  • Buying from collectors – Collectors both amateur and professional are always looking to sell individual or excess coins.
  • Sourcing from Mints – For newer coins, purchasing directly from mints like the Royal Mint ensures that you will get both high-quality and cost-effective coins.
• Authenticate and grade coins – Use professional services such as the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC) to certify your coins.
• Diversify inventory – A range in coins means a range in customers, from novice collectors to seasoned investors. Managing to build an entire collection of high-quality coins can result in high value.
• Build relationships – Perhaps the most important thing to do is to build relationships with good dealers. Engage with the wider collection community socially, share tips, and become engrained.

Marketing & Storage

You will have to buy some high-quality coin holders, display cases or any other storage container. Invest in good quality packaging to better highlight the worth of each piece in your collection. Imagine royal mint-proof coins or gold sovereigns being put within a typical coin bag. No, part of this business is the grandeur.

For maximum exposure, you can create an online store, website or social media page. They are quite useful in marketing businesses to different audiences from all over the world. To get the best out of these platforms, you should take some high-quality pictures and write clear and authentic descriptions of each piece, whilst showcasing some unique insights.

How To Identify Your Old Coins

Identifying old coins is part of the fun.

• Denomination – Consider the denomination of the coin. This will typically be indicated by a number (e.g., 5) or a specific symbol (e.g., $), along with an abbreviation of the currency unit (e.g., USD, GBP). In addition, you can use the date on the coin to determine its age and value. Understanding the transition to decimal coins can help in identifying and valuing coins from different periods.
• Coin Shape – The shapes of old coins are also helpful in determining how old they are. Irregular shapes were common before the 1700s when there were no repeatable mass manufacturing techniques available.
• Coin Size – The size of a coin is another good factor to use to try and identify it. Coins come in a wide range of sizes depending on the country or the timeline in which they were minted. The Ancient Romans for example made coins that were a lot bigger than the coins that we have now in the 21st century.
• Coin Colour – As time goes by the colours of coins have also changed. You can identify old coins by noticing the changes in the colour of the metal that has been used to mint them.
• Inscriptions on Coins – See the inscriptions and images on the coins. Different inscriptions can help date a coin as can the imagery used on them. The images can be of simple aesthetic design or informational details like mint marks or reference catalogue numbers – take a close look to find all the available information on the coins.

Which Rare Coins Are In Demand?

Some of the most popular coins that are in demand right now are:

Overall, these old British coins represent important moments and milestones from throughout British history and continue to draw attention from both numismatists and casual collectors alike.

Preparing Your Coins For Sale

Preparing your coins for sale is an essential step to ensure you get the best possible price. Here are some tips to help you prepare your coins:

• Clean your coins – Use a soft cloth and mild soap to remove any dirt or grime. Avoid using harsh chemicals or abrasive materials that can damage the coin’s surface. Gentle cleaning will enhance the coin’s appearance without compromising its value. Alternatively, pay a professional, if it’s cost effective.
• Organise your coins – Sort your coins by type, denomination, and condition. This will make it easier for potential buyers to evaluate your coins.
• Grade your coins – We have mentioned this a couple of times so far, but having the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC) grade your coins is like verification on its quality, almost always increasing saleability and value.
• Take high-quality photos – Take clear, well-lit photos of your coins from multiple angles, using a high-quality camera. Cross-reference with more seasoned veterans’ examples.

Choosing A Sales Method

Here are some popular sales methods:

• Online marketplaces – Websites like eBay, Amazon, and specialised coin marketplaces like Coinappraiser.com can provide a wide audience for your coins.
• Coin shop – Local coin shops can provide a quick sale, but like all pawn shops, they will negotiate on the price.
• Auction houses – Auction houses like Stacks Bowers Coin Auctions can provide a high level of exposure and a better return, but charge a seller’s fee.
• Private treaty sales – This method requires networking and building trust with potential buyers, meaning it’s closed off for veterans usually, but this can be the most profitable venue of all.
• Coin shows – Coin shows can provide a platform to showcase your coins and connect with potential buyers.

Shipping And Handling Coins

Shipping and handling coins require care and attention to detail to ensure they arrive safely and in the same condition as when they were sold. Here are some tips to consider:

• Use protective packaging – Protect your coins during transit by using high-quality packaging materials such as bubble wrap, foam inserts, and sturdy boxes. This will help prevent any damage that could occur during shipping.
• Insure Shipments – Insuring your shipments is a wise precaution to protect against loss or damage. This added security will give you peace of mind and safeguard your business from potential financial losses.
• Use Trackable Shipping – Opt for trackable shipping methods like UPS or FedEx to ensure that your coins arrive safely and on time. Providing tracking information to your customers also enhances their buying experience and builds trust.
• Handle Coins with Care – When preparing coins for shipping, handle them with care to avoid any damage. Wear gloves, use a soft cloth to handle the coins, and avoid excessive touching. Proper handling will help maintain the coins’ condition and value.

By following these tips, you can ensure that your coins are shipped safely and efficiently, providing a positive experience for your customers.

Conclusion

Overall, a coin-selling business is both profitable and highly engaging. Being in such proximity to history, and meeting the many people along the way who have unique insights means you will be constantly building your knowledge of both the history of currency and a fascinatingly profitable marketplace.