How do I know if a coin or a dollar is worth buying to collect?

Question

I know theres certain quailities you have to look for before you buy it

Answer 1

study books, magazines, internet.

talk to dealers and other people that collect.

Answer 2

There is no substitute for knowledge. You need reference books for the coins you are looking for. Your local public library would be a great place to start, since they probably have the books you need to learn the basics about grading and pricing coins. Contact me for recommendations on specific books that your library should have. The "Red Book" by Yeoman is the best reference book for US coins. The Standard Catalog of World Coins (Krause Publications) is best for foreign coins.

Answer 3

Several things come to mind:

1) Is the item you are considering for purchase one of the "keys" of that series or type of coin? Key coins are the rarest coins of the type, generally. For example, the 1909 S VDB cent is a key coin of the Lincoln Cent series. It's not likely that you'll find one in change, so for you to own one you'll probably have to buy it.

2) How about condition? Collectors seek to add coins (or bills, if they collect paper money) that are in the best condition they can afford. While we're on this subject, how are your grading skills? Learn all you can about how to grade the item you are considering for your collection. Collectible coins of better grade are more expensive, so grading is a subject well worth your time.

3) If you are interested in the investment potential of your collection, you should have some idea as to how the coin has performed in the coin market over time. I have a collection of "Red Books" (Guide to United States Coins by R.S. Yeoman) that I refer to. You should buy the current edition (it's released every year) and consider picking up a couple of earlier editions on eBay from, say, five and ten years ago. Look up your coin in each edition to see the relative percentage of change in the stated value over time.