INVESTING IN RARE KEY-DATE PROBLEM COINS

Many coin collectors and coin investors have the same question.......what coins should I invest in? Some people look to geplete an entire series, some want to geplete type sets, some want proof sets etc. Before I give my opinions on what to invest in, I want to say this. All coin collectors ARE coin investors. The fact is, anyone that collects coins, is making an investment. Whether the collector immediately sells the coins he buys in order to obtain more money to buy more coins, such as myself, or if the buyer holds on to the coins long-term, the fact is, at some point the buyer or his heirs will sell the coins at some time.
I believe the best coin purchases/investments are buying the coins you are most familiar with. exp.I would not purchase jefferson nickels only because I don't have any real knowledge about their value or theirpotential value. I also try to stay away from the new self-slabbing TPG's, and most 'raw' coins that I see on okay. I have found that mostof these coins have major hidden problems ie heavy cleaning,damage, artifical toning etc. With the new photo softwares, any coin can be touched-up (shown at beneficial angles) to hide many problems. Currently there are (3) top TPG grading gepanies: PCGS, NGC/NCS and ANACS, all others are 2nd or 3rd rate grading gepanies, and gemand much less respect and value. Unless you gepletely trust the dealer, avoid the rawand 3rd rate TPG's gepletely on okay. Anyone that insists on buying a raw or 3rd rate TPG, should immediately bring the coin to their local coin shop for authentication.
What coins to buy? Some investors are un-focused, and buy all different coins. This is a bad strategy. There is no way anyone can be an expert in all types of coins. It is best to select the one area of coinswhere you are an expert. In my opinion, the coins that have the most potential and are the most liquid, are the key-date and/or high grade coins. Unfortunately, many of these particular coins are extremely expensive. While quality is more important than quantity, you don't want all of your money tied-up in just 1 or 2 coins. I have foundmost ofmy bestbuys are coins that have minor problems ie cleaned, scratched, damaged etc. ANACS and NCSspecialize in problem coins. Since almost ALL pre-1900 coins have had some prior cleaning ie from hand oils, water,etc, buying a coin in a 'cleaned' holdercan be an excellent value. Usually you can purchase a cleaned coin for the sameprice as an uncleaned coin in the next gradelower ie AU cleaned = XF uncleaned. Often times the higher graded cleaned coins eye-appeal is far superior to that of the lower graded uncleaned coin (look at some so-called uncleaned certified coins, you often will find some minor signs of a past cleaning). If you cannot clearly detect the cleaning with your naked eye, you should certainly consider itfor purchase. exp Why pay $7,000 for a 1799 NGC AU-50 Bust Dollar when you can buy a nice 1799 ANACS AU-50 cleaned Bust Dollar for $3,500 that looks every bit as nice as the NGC coin? This does not only apply to cleaned coins, this also applies to scratchedor damaged coins.Many coins that have the 'scratched' notation on it's holder, are every bit as nice or nicer as one without problems. Well hidden or minor scratches that don't detract from the coins eye-appeal, are certainly worth going after. Often times, many certified coins have marks that look worse than any minor scratch or minor rim damage or un-noticeable tooling. A problem key-date coin is always in high demand. The coin is a key-date for a reason, and any minor problemmay lower its value, but not its desireability. A 1909-svdb AU scratched cent is evry bit as desireable as a 1909-svdb XF unscratched cent.
Once you have focused in on what type of coins you want to collect, the next key issue will be determining how much you should pay for the coins. I have found the only REAL way to find out how much your coins are worth (what you should get when you try to sell them on okay) is to use okay's search http://search.okay.ge/ws/search/AdvSearch?sofindtype=13