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Coin Collecting

Getting Started Collecting Coins

Which Coins to Collect?

Just about every country on the planet mints its own coins. How do you decide what to collect?

You can start by looking at price guides to see what you can afford. Gold and silver coins are going to be more expensive than coins that do not contain precious metals. Coins can be quite expensive so budget is a limiting factor for most of us.

Or get a copy of A Catalogue of the World's Most Popular Coins and pick coins whose designs interest you.

In most countries you can start you coin collecting by going through your pocket change. You can decide to collect currently issued pennies, dimes or the state quarter series in the US.

But you might find a buffalo head nickel or an quarter with silver content - last minted in 1964. (Older quarters contain more silver.) This can be the start of your collection.

Or you can go with ancient coins from Rome and Greece. They are still affordable.

There is little stopping you from making coin collecting a hobby.

US Coins

US coins minted in the 19th century are very popular with collectors throughout the world.

This was the golden age of US coin design and the coins are little pieces of art that fit in the palm of your hand.

Popular coin collectibles are post Civil War Liberty silver dollars, followed by Morgan silver dollars, post World War I Peace dollars and the Eisenhower silver dollar.

There are War War II pennies made of steel and shell casings and war time nickels and dimes made of silver.(Copper and nickel alloys were need for the war effort.)

There is also a series of very attractive 19th century gold coins, but these tend to be very pricey even in lower grades. The St. Gaudens $20 gold piece, minted between 1907 and 1933 is considered to be one of the most beautiful coins ever produced and is a highly desirable collectible.

(The US Mint copied the design for the American Gold Eagle.)

More current collectible coins are the Susan B Anthony and Sacagawea dollars both of which were flops for the US Treasury. The coins cost little more than their face value - they are still US currency - and it is easy to amass a complete collection of all the different years and mint marks of these coins.

The US Mint sells collectible sets, proof editions of coins as well as American Gold and Silver Eagles.

Foreign Coins

Coins from the 19th century imperial Europe and Russia are quite attractive and are more affordable than most US coins of the same era with gold content.

The Tsar Nicholas coin on the right is a good example.

As with US coins you can concentrate on a era, on a ruler - their pictures generally adorn the coin - or on a country.

Commerative Coins

Until recently the Mint rarely issued commemorative coins, The older ones are more handsome and not terribly expensive.

In the 1990's the Mint started to issue commemorative sets every year as a money making venture. These usually consist of either an uncirculated or proof silver dollar, a $5 gold piece and a half dollar with no precious metal content.

In my opinion the art on these coins began to suffer as this program progressed, although I must admit that the 2008 Bald Eagles coins are quite nice.

Commemorative sets are not cheap, but they are easy to collect. Older commemoratives were issued as individual coins, usually half dollars.

Proof Coins

Proof coins are specially struck by various mints - the United States and England produce outstanding proof coins.

These coins are usually given two strikes so the image is extra sharp. The coins have a mirror finish. Sometimes they are inscribed around the rim.

It is difficult to find, let alone afford older proof coins. They can cost hundreds of thousands of dollars.

However modern proofs are readily available. Since they are almost always minted of silver or gold their price is dependent on bullion prices, However they make for a very nice display.

They should be kept in the plastic containers they come in or you can buy similar containers that fit into albums to make viewing you coins easier. You want to keep fingerprints, dust and humidity away from these coins since they will oxidize and lose their mirror like look. Oils from your finger can actually etch the surface of the metal.

Bullion Coins

Bullion coins, like the American Gold and Silver Eagles, are really meant for those who want to amass gold or silver. It is costly to buy, store and insure bullion bars.

South Africa started the trend with the gold Kuggerand. Now, Canada has silver and gold Maple Leafs, China sells the gold Panda and Australia the Gold Nugget.

These coins carry a premium to their bullion value - for gold coins between $15 and $40. They are meant to and usually do closely track the underlying bullion prices. However, some do have actual numismatic value, usually due to low production runs.

These coins are available in proof condition which is more likely to increase the odds of price appreciation beyond the value of the silver or gold content.

Coin Quality and Grading

Quality and rarity determine coin values.

Coins fall into two major categories, circulated and uncirculated.

Circulated coins are broken down into grades from poor to extra-fine, Uncirculated coins also have grades called mint states, which run from MS60 to MS69. Finally there are proof coins.

Many circulated coins in fair to good condition can be many times more expensive than other mint state coins, but the same coin will always be more expensive the better its grade.

You should always buy the best grade you can afford. When buying mint state coins try to get MS 63 or higher,

Grading is often times in the eye of the beholder and coin grade inflation is a costly problem.

Services such as the Professional Coin Grading Service (PCGS) were started to address this problem. For a fee, professional numismatists grade the coin and seal it in a tamper proof case with a high definition photo of the obverse and reverse of the coin also sealed in the package,

Other coin grading services are Numismatic Guaranty Corporation (NGC), Independent Coin Grading (ICG) and ANACS.

If you don't know how to grade coins yourself, stick to these professionally graded coins. You will have a much easier time valuing the coin that way - the PCGS web site had an up-to-date price guide broken down by grade on it.

There are many books and magazines you can buy to help you decide which coins you want to buy and to judge their value. Read Coins for more resources.

Where to Buy Coins

If you are collecting current circulated coins, you can buy them from your local bank - which also should be able to get you rolls of uncirculated coins at face value. Most banks also sell the uncirculated version of the American Eagle. You can get the proof versions from the US Mint.

Coin dealers abound, but I would check with the The American Numismatic Society to find a reputable one. A lot of coin buying is done by mail, on-approval, so trust and integrity of is necessary from both sides.

Of course the internet is awash with coin dealers. If you buy online try to use PayPal. Fund the purchase with a credit card. This way you have two sources of recourse if something goes awry.

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