Coin Collecting
The first thing to do to begin collecting coins is to decide what type of coins you want to collect. The decision is entirely up to you and should be personalized to your interests. Below are some common types of collections. Don't be afraid to step out of the boundaries and collect whatever interests you most, even if they are not all coins of one type, country of origin, date or series. Also take note that for beginners, starting with coins that are already in circulation allows an easy, safe and cost-effective way of learning about coins before spending a lot on potentially risky coins that may be counterfeit or overgraded.
Coin Value
Just because a coin seems old, doesn't mean that it will be worth more. The value of any given coin is rated on four main criteria: demand, availability, condition, and grade. A coin from the 1800's that is readily available will not be as valued as a rare coin which is hard to come by. On the other hand, that rare coin may be in such poor condition that compared to a mint coin that is more available, it may not be worth as much. Each case differs.
Condition and Grading
Coins are graded according to four factors: strike (the distinctness of the ridges and shapes on the metal), visual appearance (color, reflectivity, etc.), luster (shine), and wear (deterioration and aberrations). Be aware that luster can be affected by cleaning and polishing which are both a faux pas in the world of coin collecting. Unless a coin is mint or close to it, it will probably be slightly faded or lack brilliance. Once a circulated coin has been enhanced, there may be hairline scratches on the surface which will severely decrease the coin's value.
A grading system is used to measure the quality of a coin. NGC (Numismatic Guarantee Corporation), PCGS (Professional Coin Grading Service), ANACS, and ICG (Independent Coin Grading Company) are all service providers for determining the quality, condition and authenticity of a coin.
The rating system is as follows:
Mint State (MS-70): The coin has never been circulated and is in perfect condition.
Choice Uncirculated (MS-65): It has not been circulated but it has an occasional scratch or bag marks.
Uncirculated (MS-60): Even though it hasn't been circulated it may have bag marks, nicks, or other faint aberrations.
About Uncirculated (AU-50): There is wear on the high points of the coin even though it hasn't been circulated.
Extremely Fine (EF-40): A circulated coin with wear, but still has sharp details.
Very Fine (VF-20): Major details can be seen but there are signs of wear on the finer details.
Very Good (VG-8): The rims are still visible but the details have been worn out.
Good (G-4): The coin is worn but the major details can still be seen.
About Good (AG-3): Much of the major details have been worn down and some things may no longer be visible.
Types of Coin Collectors- Investors: People who enter coin collecting to make money. They search for the most valuable coins and look to sell the coins at the highest values they can.
- Hoarder: People who collect any coins they can find. They do not have a specific focus in their collection. Most hoarders collect coins as a hobby.
- Inheritors: People who inherit coins from others. They do not need to know much about the coins. The fact that they inherited the coins from another and have the coins in their possession qualifies them as an inheritor coin collector.
Coin Care- Try to always hold the coin by its edges.
- Use cotton gloves to handle valuable coins to prevent fingerprints appearing on the coins.
- In general, coins should not be cleaned. Cleaning could potentially damage a coin. If a coin needs to be cleaned, take the coin to a professional to clean.
- Do not use coin holders. They contain PVC which can give the coin a greenish tint after time.
Helpful Links- Coin Collector-- Offers news and information on coin collecting
- My Coin Collecting--Lots of information on collecting coins, coin values, and coin care.
- Coin Site-- A plethora of information on coin collecting, including a database to look up coin values.
- Coin Collecting for Beginners-- True to its name, this site has great tips and fact sheets for people just starting to collect coins.
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