What is coin collecting?
Coin collecting is the process of looking for coins, accumulating, organizing, and preserving them properly so their value is kept intact.
People collect coins for different reasons– Some for artistic or historical reasons and others as a means of investment for profit. Coins can either be circulated, uncirculated, or proof. People who participate in the hobby of coin collecting are called coin collectors.
One important thing you need to also consider is the grade of a coin. The grade of a coin determines its value. It is graded from grades 1-70 one showing it is well worn out and unidentifiable and 70 shows it is in perfect condition.
Grading services are offered by coin grading companies like Professional Coin Grading Service (PCGS), the best coin grading service provider, and Numismatic Guaranty Company.
Coin collection is a little bit different from Numismatics which is a more formal and careful study of currency in general.
Coin collecting is fun, but you need the knowledge to do it successfully without wasting your time and money. Check out these guides on how to start your coin collecting hobby the right way.
Is a coin collection worth it? Reasons to collect coins.
Coin collecting as I said earlier is a hobby engaged in by people for different reasons. But in general, there are reasons why you should start this hobby.
- collecting is a great way to learn about the history of your country, and its economic and political leaders. You will learn a plethora of information about important political figures and the times they ruled. It is not only just about collecting coins. It is an educational endeavor.
- It is a form of investment. Most coins collected happen much more valuable than their face value. This is because of either special errors or old coins which are few in quantity. If you happen to find one in your pocket you could break the bank.
- Coin collecting is also a fun and engaging hobby. Setting a goal for yourself to find that coin keeps you focused and helps you develop patience and perseverance. Not to talk of the physical exercise this hobby can help you get.
Coin term glossary
If you are serious about coin collection, these are important coin vocabulary you need to know.
Annealing: The process of heating up metals in order to make them soft and malleable. The process makes it less difficult to work with the metals.
Assay: This is a qualitative analysis of a metal to determine its purity.
Bag Mark: A scratch on a coin when it comes in contact with other coins in a mint bag.
Alloy: Two or more metals mixed together.
Bi-Metallic: A coin comprised of two different metals, bonded together
Bullion Coin: Are coins minted from precious metals and sold at bullion prices.
Bullion: Physical palladium, platinum, gold, or silver of high purity kept in the form of bars and other shapes as well.
Business Strike: A coin produced for circulation for the general public to use as compared to proof or uncirculated coins.
Bust: A image on a coin that includes the head, shoulder, and neck.
Clad Coinage: Clad coins are coins that have multiple layers of different metals. Coins made as such are said to be clad. All US circulating coins—the dime, cents, half dollars, and dollars have all been clad after 1965.
Coin: A flat rounded metal minted mostly by the government as a form of legal tender.
Collar: A metal piece that prevents the metal of a planchet from expanding when is being struck.
Commemorative: A special type of coin minted to honor an important figure in public or an event.
Condition: The physical state of a coin.
Counterfeit: A fake type of coin or currency made illegally and used as if it’s genuine.
Currency: Any kind of money – coins or paper money – that’s used as a legal tender for exchanging goods and services.
Denomination: The various classification or values of money.
Die: Dies are customized stamps for impressing designs on coins. They could be images or values.
Designer: They are the authors of the design of coins but not necessarily the ones who mint the coins.
Edge: The outside of a coin that can either be lettered, smooth, or decorated.
Engraver: A designer who creates a clay model of a coin design.
Blank: It is also called a planchet. It is a blank metal disk on which a coin is stamped.
Error Coin: An incorrectly made coin that is not spotted during production and distributed to the public. Some of the common errors are planchet errors, die errors, double dies, counter stamp errors, and mint striking errors.
Face Value: The sum for which a coin can be spent or exchanged. It is stamped on the coin itself.
Field: It is the flat surface of a coin that is not used for anything. It just serves as a background.
Grade: The grade of a coin shows the value of a coin. It points to the physical condition of a coin. The most popular grading system is the Sheldon scale system.
Hairlines: They are scratches found on coins due to cleaning and polishing.
Incuse: It is a part of a coin’s design hammered onto the coin.
Ingot: A pure metal cast into a particular form for making coins.
Inscription: Are words or values engraved on a coin.
Intrinsic Value (Bullion Value): The current worth of a particular coin or any currency.
Key Date: They represent a set of coins that are difficult to obtain or afford.
Legal Tender: Coins, paper money, or any form of currency issued by the government as a form of legal tender for the purchase of goods and services.
Legend: The main inscription on a coin.
Mint: A place where coins of any country are manufactured under the authority of the government.
Mint Luster: The various reflective qualities found on the surface of a coin early on in the minting process. They can be dull, frosty or satiny in shine.
Mint Mark: The mint mark tells where the coin was made. In the US for example mint marks are either Philadelphia(P), Denver (D), West Point(W) or San Francisco (S).
Mint Set: A complete set of uncirculated coins that a particular mint facility has released.
Mint State: This means the coin has not been circulated to the general public.
Mintage: The quantity of coins made.
Mylar: A polyester film used to store coins.
Numismatics: The formal study of the different forms of money. They can be coins, paper, or any other type of currency.
Obsolete: A coin design or type that is out of date and no longer made.
Off-Center: Describes a coin is struck at the edge and not the center. The coin, therefore, does not become circular.
Overstrike: An overstrike happens when an already produced coin is struck again with a new design.
Pattern: A coin used for trial purposes and not intended to be released to the public because it has not been approved yet.
Planchet: It is also called a blank. It is a blank metal disk on which a coin is stamped.
Business Strike: These coins are created for general business usage and come in huge quantities. They are different from proof coins and are not collected by coin collectors.
Proof: Proof coins are special types of coins created mostly for commemorative purposes. They are minted to honor an important figure in society or to mark a special event in history. Coin collectors are very much interested in proof coins because they are very rare and profitable.
Proof Set: A complete set of proof coins of each value made in a particular year.
Relief: Any part of the coin raised above the surface.
Restrike: A coin that is minted using the original dies but at a later date.
Obverse: The front side or heads of a coin.
Reverse: The backside or tails side of a coin.
Riddler: A machine that screens out blanks (planchets) that are the wrong size or shape.
Rim: This is the part of the coin’s edge raised slightly to protect it from wear.
Roll: Coins packaged and sold by coin dealers and shops, banks, and the United States mint.
Series: A collection of coins that includes all date and mint marks of a particular design and its different values.
Strike: The process of impressing a coin planchet with a design.
Type Set: A collection of coins based on their different values or denomination.
Upsetting Mill: A machine that lifts the rim on both sides of a blank or planchet.
Variety: A small change in the design of a coin.
Year Set: A set of all coins minted by any particular country of a particular year.
Composition of a coin
Obverse: The front side or heads of a coin.
Reverse: The backside or tails of a coin.
Edge: The outside of a coin that can either be lettered, smooth, or decorated.
Rim: This is the part of the coin’s edge raised slightly to protect it from wear.
Field: It is the flat surface of a coin that is not used for anything. It just serves as a background.
Legend: The main inscription on a coin.
Mint mark: The mint mark tells where the coin was made. In the US for example mint marks are either Philadelphia(P), Denver (D), West Point(W), or San Francisco (S).
Relief: Any part of the is raised above the field of a coin.
Coin grading. How to evaluate the quality of your coins?
Coin grading is a process used to determine the physical state of a coin in order to determine its value.
Grade and value
The grade and value of a coin is a very important aspect of coin collecting. The grade of a coin points to the physical appearance and condition of a coin. The better it looks the more valuable it is. However, it is not only appearance that determines its value. Old coins are more valuable than much newer coins.
Coin collectors over the centuries have developed systems to determine the value of a coin. Coins are graded from 1 – 70. One meaning barely identifiable and 70, a perfect coin so more valuable.
The American numismatic association provides the number scale system as a criterion to identify the value of most coins in the US.
See below as follows.
Mint State (MS) 60–70: Uncirculated (UNC)
- About/Almost Uncirculated (AU) 50, 53, 55, 58
- Extremely Fine (XF or EF) 40, 45
- Very Fine (VF) 20, 25, 30, 35
- Fine (F) 12, 15
- Very Good (VG) 8, 10
- Good (G) 4, 6
- About Good (AG) 3
- Fair (F) 2
- Poor (P) 1
When evaluating a coin’s quality, you can consider the following list of factors.
- Color
- Luster
- Eye appeal
- Scratches or cleaning marks
The value of a coin is extremely important. Any damage like a scratch, a hole, gouges, or any polishing marks will greatly reduce the value of your coins.
Coins you can start collecting
United States Coins
- Pennies
- Nickels
- Thomas Jefferson Nickel
- Buffalo/Indian Head Nickel
- Liberty Head V-Nickel
- Dimes
- Roosevelt Dime
- Mercury/Winged Liberty Dime
- Barber or Liberty Head Dime
- Liberty Seated Dime
- Half Dollars
- Kennedy Half Dollar
- Ben Franklin Half Dollar
- Walking Liberty Half Dollar
- Barber/Liberty Head Half Dollar
- Liberty Seated Half Dollar
- Capped Bust Half Dollar
- Quarter Dollars
- 50 State Quarters
- Washington Quarters
- Standing Liberty Quarters
- Barber Quarters
- Liberty Seated Quarters
- Capped Bust Quarters
- Dollars
- Morgan Silver Dollars
- Peace Dollar
- Seated Liberty Dollars
- Eisenhower Dollar
- Susan B Anthony Dollar
- Presidential Dollars
References