Coin collecting is a fun and beneficial hobby for age groups both young and old. If you have recently decided to take up coin collecting, you are in for a treat. Not only does this hobby teach you about history and politics, it can also open the door for some great social opportunities. Of course, there are at least a few things you should know before you dive into the coin collection scene.
Learn to Grade
First and foremost, you need to learn how to grade coins before you begin collecting them. Grading coins is an important process that allows you to determine the value of the coin. The 70-point Sheldon Grading Scale was first developed in 1948 by Dr. William Sheldon.
The grading scale is as follows:
- P-1: Coin is hardly recognizable, but at least offers both a mint mark and date.
- FR-2: Coin has been worn smooth, but does not have the damage consistent with poor coins.
- G-4: Coin inscriptions show heavy signs of wear, but the coin is otherwise undamaged.
- VG-8: Coin is very worn, but design elements of the coin are recognizable, yet faint.
- F-12: Coin is very worn, but the design elements are both clear and bold.
- VF-20: Coin is only moderately warn and some finer details are visible.
- AU-50: Coin has minimal traces of wear and contact marks.
- AU-58: Coin has light traces of wear, minimal contact marks, and nearly full luster.
- MS-60: Coin is uncirculated, yet still visibly unappealing with no luster.
- MS-63: Coin is uncirculated but with slight luster problems and contact marks.
- MS-65: Coin is uncirculated and has a stronger luster with minimal contact marks.
- MS-68: Coin is uncirculated and has perfect luster with no marks visible to the naked eye.
- MS-69: Coin is uncirculated, visually appealing and perfect up to 8x magnification.
- MS-70: Uncirculated coin that offers original color and luster with no visible defects and no defects detected under magnification – in other words, perfect.
*Fun Fact: The first emperor Rome ever had, Caesar Augustus, is rumored to have been the first coin collector. His rule lasted from 27 BC to 14 AD. However, one of the most famous coin collectors is Petrarch, a 14th century Italian scholar and poet.
Hire a Professional
If you are new to coin collecting, you are an easy target for scams and other such problems. For example, a random seller may claim that a coin is in mint condition when in reality, it may have been buffed or whizzed.
Buffing a coin entails polishing it to make it look like it has good luster, whereas whizzing a coin entails brushing or burnishing it, typically using a wheel, in order to improve the coin's luster. Unfortunately, both methods can damage the original surface of the coin, therefore lowering the value.
Make sure you work with a professional coin dealer to ensure that the coins you purchase are in the condition stated by the seller. A professional has the tools necessary to check the authenticity, quality, and value of the coin to ensure you are paying the correct amount.
*Fun Fact: The proper term for a coin collector is a numismatist. Simply put, a numismatist is someone who both collects and studies various forms of money, including coins, paper bills, medals, tokens, and even medals.
Protect Your Investment
Make sure you have a safe place where you can store your coins, such as in a sturdy display case. You should also insure your investment. A coin collection often has a lot of value. Insuring your coin collection ensures that you are financially covered if your collection becomes lost, stolen or damaged.
Furthermore, you will need to protect your investment by handling the coins as little as possible. The more you handle the coins, the more likely they are to sustain damage such as wear and tear. Avoid diminishing the lifespan of your coins by storing them safely and securely.
Speak with a professional numismatist about the proper storage of your new coin collection. A professional online coin dealer can offer you plenty of other tips and tricks you may not be aware of, such as the proper way to clean your coins without running the risk of ruining them.