Common Coin Collecting Questions

Coin collecting is an extremely popular hobby with people of all ages. Children tend to gravitate towards pretty or unusual looking coins, while adults are generally concerned with the financial value of their collections. Some people build strictly a grassroots coin collection, acquiring those coins that they happen to stumble across, while others buy in bulk and eagerly anticipate new limited edition minting. However you choose to build your collection, you may have many questions about the hobby. This audio program will address some popular questions and concerns that first time coin collectors may have.

What kind of coins should I collect?

This is a very personalized decision. Some people focus on a certain year and attempt to collect a full set of coins from that year. Others prefer antique coins, silver coins, or gold coins. Still others just collect the individual coins that strike their fancy.

What is numismatics?

Strictly speaking, numismatics is the study and collection of money and related financial objects or documentation. Examples include not only coins but also paper money, checks and stock certificates. In practice, however, the word numismatics is commonly used to mean simply coin collecting. Those who practice numismatics are numismatists.

How do I get started in coin collecting?

Begin by determining the value of any coins you currently possess. Many get started in the hobby after inheriting or otherwise acquiring one or several unusual coins. After you find out the value of what you currently have, you will need to decide how you want to go about building your collection. You may want to start with the coins you now possess and work towards building a set, or you may want to collect entirely different coins. The choice is yours.

Where can I purchase coins?

This partly depends on what you are looking for. Specialized coin shops and coin shows offer the widest inventory for your in-person inspection. However, you can also find coins at junk shops, antique stores, estate sales, and even yard sales. It is important that you learn how to value coins before making expensive purchases in order to avoid scams. Once you learn the valuation criteria, however, you can sometimes get fantastic deals from owners who do not realize the value of what they are selling. You can also purchase coins on the internet, but be very careful with this. If you cannot inspect the coin in person, you have no way to tell for sure if it is worth the price. Make sure that you deal only with reputable sellers who provide both references and liberal return policies.

How do I find out the value of my coins?

A professional appraiser can give you an estimated value of each coin, both individually and as part of a set or bulk lot. However, it is highly recommended that you learn to value coins yourself. Many books are currently on the market that will help you learn to estimate coin value. Remember that no appraisal, whether from a book or a person, is a guarantee. The ultimate value of a coin, as any collectible object, is the price that someone is willing to pay for it.

How should I handle my coins?

The short answer is as little as possible. Even the smallest fingerprints on an un-circulated coin can cut the value dramatically. If you must handle a collectible coin, do so only from the edge. If you need to lay the coin down, use a velvet pad if available. Minimally, use a soft, clean cloth. Handle extremely high value coins only with surgical gloves and a protective facemask.

How should I clean my coins?

You really should have no need to clean the coins. Collectors look for authenticity, not shiny newness. Even damp wiping with a clean, lint-free rag can leave hairline scratches on the coin, lowering its value dramatically. If it is strictly necessary to remove dirt and debris, ask other coin collectors to recommend a commercial coin cleaner that removes the dirt without scratching the coin or losing the luster. Ask to see coins that they have cleaned before using their advice.

How should I store my coins?

The goal for coin storage is protection from temperature extremes and humidity. You also want to protect your coins from fingerprints, dust, dirt, and chemicals. Some form of dehumidifying equipment is recommended, even if it is just silicone gel packets.

Low value coins can be kept in almost any container. However, higher value coins require special protection. Your goal for high value coin preservation is a container that is as airtight as possible, which also displays the coin so that there no need to remove it from the container. Many commercial storage options are available. Ask for recommendations from your coin dealer or others in the hobby.

How do I avoid common beginners' mistakes?

This question has a simple two-word answer: research and guidance. Like any other investment market, it takes time to learn the ins and outs of coin collecting. Experts spend years and years perfecting their knowledge and even then, they sometimes make mistakes. Invest in a high quality reference library and take the time to read the materials.

You will also need to find a qualified expert whom you can trust. Many beginning coin collectors work hand in hand with a dealer who will seek out the items they want. Make sure that your expert is trustworthy and reliable by checking his references carefully.

How are coins graded?

Grading coins is an extremely complicated process. Only trained professionals can do specific grading. However, it is a good idea for any coin collector to have a basic understanding of how grading works.

There are 13 standard grades for circulated coins, ranging from the AG-3 "About Good" to AU-58, or "Very Choice about Un-circulated). Uncirculated coins are graded from MS-60 to MS-70, depending on quality and flawlessness. In practicality, MS-70 is more of an ideal than a realistic grade. A good book on grading will teach you the basics on recognizing the differences.

Some experts utilize different or additional systems, so it is always vital to make sure that you are speaking the same language as the expert with whom you are dealing.

Why are some coins worth more than others?

Remember that the only true value of a collectible item is what someone is willing to pay for it. Coins may be worth more money based on rarity, uniqueness or beauty, or any combination of the three. Each coin has a base "melt value," which is the price of the component metal. Value then goes up based on the three factors above. Once the price is determined based on the above factors, grade or condition then plays a role. Coins that are in better condition (higher grade) are more valuable.

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