Coin collecting is one of the most popular hobbies in the world. Most coin collectors simply enjoy trying to acquire a complete set of a nation’s coins or of one or more particular coins. Some people collect coins as works of art. Others collect them as an investment, to be sold later at a profit. Through coins, a collector can also learn something about certain famous people and events in a country’s history.
Imaginative coin collectors can build many types of collections. They can specialize in coins of one country or in various kinds of coins, such as cents or dollars. They can collect coins of unusual sizes or shapes. Many collectors concentrate on coins that illustrate a certain subject, such as animals, ships, or famous women.
The collecting or study of coins is called numismatics, and a coin collector is often called a numismatist. These words come from the Greek word nomisma and the Latin word numisma, both of which mean a piece of money or a coin. Numismatics includes paper money and also medals, tokens, and similar objects. This article tells how to begin and care for a coin collection.
Starting a coin collection.
The best source of coins for a beginning collector is the change received when making various purchases. Friends also can help the beginning collector by letting him or her check the coins they may have—and swap money for any coins found that are not in the beginner’s collection. Many beginning collectors go to a bank and exchange their money for rolls of coins. They then examine the rolls to find coins for their collection.
A coin’s value depends on several factors. A coin’s condition and how easily it can be obtained are the most important factors. The type of metal from which a coin is made can also contribute significantly to a coin’s value. This is due to the changing price of precious metals from which some coins are made. The most valuable coins are both uncirculated (unused) and scarce. Coins with mint (manufacture) errors are also valuable. These include coins released into circulation that have been incompletely struck (made), struck more than once, struck on the wrong type of metal, or made with defective manufacturing equipment. A beginner should seek easily obtainable coins at first.
As collectors learn more about the hobby, they can start to acquire coins of greater value from several sources. For example, coin dealers and many collectors sell, trade, and buy coins. Some collectors obtain coins through auctions held in various communities or conducted by mail. Coins may also be purchased over the Internet. Many large coin dealers have websites that offer coins for sale and hold weekly or monthly auctions. In many countries, a government agency sells uncirculated coins directly to collectors.
A person should have some basic information about coin collecting before starting to acquire coins. Books for beginners can be obtained at bookstores, hobby shops, and libraries or purchased online.
Many collectors subscribe to a specialized newspaper, such as Coin World or Numismatic News, both of which are published weekly. The American Numismatic Association, the largest organization of coin collectors, publishes a monthly magazine, The Numismatist, and hosts a website—www.money.org—that provide a number of resources to both visitors and members. The association sponsors a program that awards ancient coins to young people who complete certain numismatic activities. The association also provides the names of U.S. coin clubs and member coin dealers through its website. These coin clubs encourage new collectors to attend their meetings and exhibitions.
Collecting United States coins.
Any person who collects U.S. coins should have A Guide Book of United States Coins. This book is called the Red Book because of its red cover. It gives the approximate price of any U.S. coin, depending on its condition and scarcity. Coin sellers should obtain the Handbook of United States Coins. This book is called the Blue Book because of its blue cover. It lists the approximate value that sellers can expect to receive for their U.S. coins. New editions of both of these books are published annually.
The law requires U.S. coins to be dated with the year in which they are struck. The U.S. Department of the Treasury operates mints (places where coins are made) in Philadelphia; Denver; San Francisco; and West Point, New York. The Philadelphia and Denver mints make all coins used for general circulation. They also produce uncirculated coin sets. The San Francisco mint makes special high-quality proof coin (limited early impression) sets for collectors. The West Point mint makes gold, silver, and platinum bullion coins, which investors buy for their value as metals rather than as money. All four mints make commemorative coins for special occasions. At least some coins struck at each of these mints have a mint mark. All coins made at the Denver mint are stamped with a small D, and all coins except cents made at the Philadelphia mint receive a small P. Cents minted at Philadelphia do not have mint marks. At the San Francisco and West Point mints, only commemorative coins and proof coins receive a mint mark. The San Francisco coins bear a small S, and those from West Point bear a small W. Bullion coins do not have mint marks.
Until 1965, dimes, quarters, and half dollars contained 90 percent silver. Most collectors tried to assemble a complete set of these coins—as well as cents and nickels—by date and mint mark. In 1965, the government replaced silver dimes and quarters with coins made of nickel and copper. In 1971, the government made a similar change in the metal composition of half dollars. During the late 1960’s, the price of silver rose rapidly. As a result, the value of the silver in a coin rose above the coin’s face value. Millions of silver dimes, quarters, and half dollars were melted for their silver. Almost no silver coins remain in circulation. In the late 1970’s, the price of copper began to rise rapidly. By the early 1980’s, it cost the U.S. Mint more than one cent to make a one-cent coin. In 1983, the mint began to make cents out of zinc with a thin plating of pure copper.
Every year, the U.S. Mint strikes a limited number of cents, nickels, dimes, quarters, half dollars, and dollars for collectors. Many people buy a number of sets of these special proof coins as an investment. Information on proof sets and other numismatic items may be obtained from the Customer Service Center of the U.S. Mint in Washington, D.C.
Collecting coins of other countries
offers an almost endless variety of opportunities. Some collectors try to acquire one coin from every country in the world. Other people build a collection of one-cent pieces from every country that issues such coins.
A series of reference catalogs and online resources called the Standard Catalog of World Coins provides regularly updated information about coins from other lands. Several other books deal with coins of specific countries and regions, such as Canada and Latin America.
Many nations sell their coins in uncirculated and proof condition to collectors. A few countries have taken advantage of the interest in coin collecting. They have issued coins with designs featuring subjects that have little in common with the country. Although the coins can be used as money, they do not circulate because they cost much more than their face value. These coins are called Non-Circulating Legal Tender.
Many collectors specialize in coins from ancient Greece, Rome, or Palestine. Various ancient coins, especially those of Greece, are prized for their beauty and craftsmanship. Some collectors specialize in coins that were issued in Europe during the Middle Ages.
Caring for a coin collection.
Many stores and online retailers sell albums in which to keep coins. Some collectors prefer 2-inch by 2-inch (5-centimeter by 5-centimeter) cardboard holders with a round plastic window into which the coin can be placed. These cardboard holders can then be stapled shut and slipped into three-ring binder pages in order to organize and store a coin collection. Other collectors put their coins in metal cabinets that have trays lined with soft cloth. Still others use small, acid-free paper envelopes designed to hold coins.
Collectors should avoid cleaning their coins. Rubbing a coin to remove dirt or stains may increase the amount of wear on the metal and thus reduce the coin’s value. A coin also may be scratched accidentally while being cleaned. Coins should not be dipped in tarnish removers because they contain acids that will eat away at the surface of coins.
