Top 10 Tips For Collecting Coins- A Beginners Guide To Build a Prized Collection

What may have been the value of nickels one day can be sold for not only thousands but for millions today, a classic example of this is a coin.

Are you interested in collecting coins or just thinking about what to look for when collecting coins?  Whether you are a beginner, hobbyist, or an experienced coin collector, there are certain things you must look for while collecting coins. 

Coin collecting is also a way of interacting and understanding history. While collecting, look for historical significance since it can play a crucial role in determining the overall value of a coin. Combining coin collecting with history is a great idea if you are someone fond of history!

1. What is Coin Collection?

Simply put, coin collection refers to gathering coins with certain unique features. The collectors usually collect coins based on different themes, such as coins from a specific country, period, minting errors, etc. The scientific study of coins is termed as numismatics. It’s a broader area, including paper money. Some people collect coins for fun; others consider it a profitable investment. 

Coins were hoarded even during the times of the Roman Empire. The history of modern coin collecting can generally be traced to the fourteenth century; it became popular during the Renaissance period, especially among the upper class.

Today, coin collecting is a popular hobby across the globe. Whether you start a coin collection as a hobby or as a valuable investment, looking for coins with collectible values is essential. 

In the subsequent sections, we will delve into the million-dollar question regarding coin collections. What should you look for when collecting coins? Before that, let’s understand the essential parts of a coin.

2. Must Know Basics: Important Parts of a Coin

Before starting your coin collection journey, knowing the parts of a coin is essential.

• Edge: It is the lateral border of the coin, also referred to as the third side, the edge may be lettered, reeded, plain, or even decorated.
• Obverse: The front side or head of the coin is termed the obverse.
• Reverse: The back side or tail of the coin.
• Rim: It is a slightly elevated edge on the other side of the coin. It is meant to protect the coin from wear and tear.
• Field: The part of the coin where no design or inscription exists.
• Relief: The relief is the raised portion of coin design.
• Mint Mark: It’s either a symbol or letter indicating the location where the coin was minted. Eg. The ‘P’ for Philadelphia
• Inscription: Lettering on the coin is termed a legend or inscription.

After knowing about different parts of a coin, are you curious about things to look for when you start collecting coins? The following section will discuss what to look for when collecting coins. Read on! While collecting coins, there are certain must-look-for factors you can not avoid at any cost. Let’s go through them in detail to build meaningful and more valuable coin collections.

3. The Coin Type

The collectible coins can be classified into many categories. Some of them are listed below:

• Country of Origin: The coins can be collected based on their origin, you can focus only on the United States coins or look for world coins. While collecting coins, the country of origin is a crucial factor. World coins generally refer to foreign coins. For less expensive collections, you can try collecting 5 cents Canada (1922-45) coins minted by the Royal Canadian Mint.
• Error Coins: They are exciting coins, the error coins refer to the type of coins with minting errors. You may think these coins are worthless, but they are rare and one of the favourite categories for coin collectors. The minting errors can be of different types, like coins with multiple strikes, off-center strikes, or made using defective dies. They are very rare and valuable coins and are priced high.
• Commemorative Coins: The commemorative coins are essential since they are minted to remember certain occasions or people. They are collectibles, and the best part is you can get such United States coins from the National Mint. When you get it from the National Mint, you will also receive the authenticity and value guarantee certificate.
• Proof Coins: Collecting old-proof coins is a dream come true for many coin collectors, they are exclusive coins with the finest quality. They stand out with excellent artistic design and quality. There are also reverse-proof coins, in which the background has a mirror-like finish, unlike proof coins, where the design has such finishing.
• Ancient Coins: They are rare and valued coins from ancient times, sometimes even dating back to the Roman Empire. Such coins carry a high price tag and are very difficult to find, and as they say, the age of the coin is hard to miss.
• Bullion Coins: These are coins made of precious metals like gold or silver, the pure gold coins themselves carry intrinsic values. The type of coins you can collect does not end here, if you want a less expensive collection, you can try collecting coins like 1916-1945 Mercury dimes, 1921 silver Morgan dollars, or Lincoln pennies coin sets.

Some coins are famous for their design, they have exquisite coin designs and are much appreciated by coin collectors. Examples of such a category include the Saint-Gaudens Double Eagle coin renowned for its beautiful design.

4. Silver vs Gold Debate

You should consider the coin material as well, gold and silver stand out among the materials due to their wide usage. Choosing between silver and gold coins depends majorly on your financial capacity. If you have a higher amount to spend on coin collecting, you can select gold coins. 

But remember, the value is not entirely dependent on the materials; other factors like period and design can impact the market value. Hence, sometimes, for rare and valuable old coins, silver may be more expensive than gold.

5. How Can You Identify Good Coins?

Authenticity is the most important factor to consider; ensure that the coins you collect are authorized and verified by reliable sources like the American Numismatic Association. While buying from coin dealers, check for authenticity and quality certifications.

The coin grading is done on a scale of 1 to 70, along with numbers and letters are also provided. For example, VG stands for very good. Companies like Numismatic Guaranty Corporation do such grading, which can change over time.

While collecting, it is vital to know about the coin’s market value. To understand the market value of any particular coin, you can consult numismatic experts. 

6. Finally, Top Ten Tips for Beginners

Are you excited to start your collection? Wondering about how to and where to start? Don’t worry. In this section, we are providing you with enough tips to start your collecting journey!

• When starting, pick an easy theme like the 1934-1938 date and mint set of Buffalo nickels or Indian head pennies. 
• You can purchase coins from coin dealers, expos, auctions, local coin shows, shops, or specific coin sets from the National Mint.
• Don’t hesitate to swap coins with other coin collectors. 
• Before collecting, ensure you have a basic understanding of coin grading.
• Buy a magnifying glass and a scale to check coins carefully.
• Do not make any changes to the original coins. 
• Clean coins and store them well, do not expose them to high humidity or sunlight. You can buy safes, coin folders, boards for storage, and coin flips for individual coins. 
• While handling coins, try to hold them by the edges. Holding by edges will prevent any damage. Remember, proper handling is as crucial as coin collecting.
• If you are a new coin collector, it is advisable to join a coin club. 
• If you buy coins online, check for acknowledgment by organizations like the American Numismatic Association. If it is not available, go through the online reviews carefully.

7. Collect, Learn and Enjoy!

In this article, we discussed in depth what to look for when collecting coins and the relevant tips for new collectors. Now equipped with this knowledge, are you ready to start a coin collection journey? 

Collecting coins is a fun-filled hobby and a way to understand our history. So, what is stopping you from pursuing the art of collecting coins? Happy collecting!

Last Updated on August 17, 2024 by Sathi