If you're investing in collectible coins, remember that the coin's condition is very important. In almost all cases a coin which appears to be in excellent condition will be significantly more collectable than one which is rough shape. Also, be aware that a coin's worth depends on more than just its age. Everyone knows that old and rare coins are desirable, but there is more than just age and rarity that determine a coin's value to collectors. Demand is a key factor in the market value of all collectible coins.
Buying Silver coins for just the silver value is usually a good investment. As a rule of thumb expect to pay between 5.5 times the face value and 13 times the face value of large silver coin lots. As a collector you should know that the condition of a coin is measured on a scale from PR-1 to MS-70 and the value of a coin is determined by the condition and the rarity of the coin. The rarity of the coin is usually depends upon how many coins were minted to begin with. This doesn't always hold true but most of the time it does.
If you are just starting a coin collection, there are a couple of things that you need to decide on first.
A) Do you plan on in your life time selling your collection for a profit?
B) Do you plan on buying and selling coins as a source of income?
C) Do you love coins?
The reason you need to ask yourself these questions is that every collector is different, some coin collectors simple enjoy the the process of the hobby. Some enjoy the money that can be made from investing in long term tangible assets like coins. Others just like the way the coins look on their shelf or mantle. Whatever your reasons are, you should make a decision of what type of collector you are prior to your first coin purchase.
A collector that is buying a coin for resale and one who is buying a coin to fill an empty hole in their book should not pay the same amount for the same coin. Meaning that the coins value will change depending on what type of collector you are.
Some of you may have just received your coins as an inheritance or as a gift from a family member and you may be looking for a efficient way to sell your coins to make some quick money. As I describe above a coins worth depends greatly on who is buying and their reasons for buying the coin or coin collection. there are several books available to help you determine a coins value taking into consideration the condition and a coins numistic value. You can grade each coin yourself and get a pretty good idea of a coins value with the tools that are available on the market today. keep in mind that an 800.00 coin is only an 800.00 coin if someone is willing to pay 800.00. using the Red Book to determine the sell value of a coin will always end in disappointment. Take my advise and buy a blue book this will give you a better idea of what to expect when selling your coins and be prepared to get 10% to 15% less then what that book says. Over the last 2 years I have sold off a small fortune in extra coins that I had duplicates and triplicates of, I can tell you from first hand experience that just because a coin is worth X doesn't mean you will get X for it.
Selling your coins via an auction type site can be very costly and very frustrating. I was using an auction site for the last 2 years, and when I totaled it up, I have paid them over 1/4 of what I made selling my extra coins. Not a very good deal by any means. I recommend selling coins on a site like extracoins.com or any other free classified site, it will save you a bit of money and in the long run that bit of money adds up. I don't recommend taking personal checks or money orders as a form of payment. If you don't have a paypal account then you should only accept a postal money order for payment these are less likely to be fraudulent. And if you are planning on only accepting payment from local buyers, set up a public meeting place like a coffle shop, library or a book store, someplace that you can sit and talk about the transaction.
Here is the currently accepted coin grading scale called the Sheldon Scale
Poor-1 or P-1 (Poor) - The type is barely discernable, but little else, due to the coin being badly damaged or worn smooth.
Fair-2 or FR-2 (Fair) - Type and date are barely discernable, but otherwise the coin is damaged or extremely worn.
AG-3 (About Good) - Type and date are discernable, although some spots may be worn out. Some lettering should be apparent, if not necessarily readable.
G-4 (Good) - Major devices and features are evident as outlines. although the coin overall is heavily worn.
G-6 (Good-plus) - Coin has a full rim plus major devices and features are clearly outlined. Heavy wear.
VG-8 (Very Good) - Full rim with clearly discernable devices and features. Most legends are readable clearly, but the whole coin is still significantly worn.
F-12 (Fine) - Distinct rim, all legends readable, clear devices showing some detail, but the whole coin is moderately, but evenly worn.
VF-20 (Very Fine) - Clearly readable but lightly worn legends, devices show good detail, rims are clean, but the whole coin shows moderate wear on the high points and a little wear below.
VF-30 (Good Very Fine) - Legends are clear, devices show all detail with little wear; high points are lightly worn.
EF-40 (Extremely Fine) - Legends are sharp, devices are clear with slight but obvious wear on the high points.
XF-45 (Choice Extremely Fine) - Legends and devices are clear and sharp, with slight wear on the high points, and great eye appeal.
AU-50 (About Uncirculated) - Sharp legends and devices show only a trace of wear on the highest points. There must be some remaining mint luster.
AU-55 (Good About Uncirculated) - Sharp legends and devices show only a hint of wear on the high points. Remaining mint luster must be at least half; great eye appeal.
AU-58 (Choice About Uncirculated) - Virtually uncirculated, except for minor wear marks on high points. Nearly all mint luster must be present, and must have outstanding eye appeal.
MS-60 (Mint State Basal) - Coins in this grade are ugly, dinged-up, bag-marked, ill-toned specimens, but they are in mint condition and free of any wear!
Coins Graded From MS-60 to MS-70, are based primarily on eye appeal, quality of luster and or toning, and the presence or absence of contact marks, hairlines, etc. All coins MS-60 and higher are Mint State coins.
Proof is not a grade, it's a type of coin.
Each type of coins has it's own grading scale and it's grade may differ from another coin in the same condition it is important to get a coin grading guide.