How To Start a Coin Collection: Nine Questions

The value of a coin is based on two factors. The first is how rare the coin is. This is a combination of how many coins were originally minted, and what happened to them. Some are destroyed accidentally. Some have been recalled by the government. Collectors have taken some out of circulation. Some are even in large jars tucked away in a closet. As a particular type of coin has fewer examples readily available, it becomes more valuable. The other factor is the physical condition of a coin. The closer a specimen is to perfect is, the more valuable it becomes. So a rare, perfect coin is much more valuable than a common, worn coin.

The American Numismatic has developed a grading system to describe the condition of a coin. What I will discuss here is coins that have been minted to go into general circulation, released. The conditions of the coins are represented by names, as well as a combination of letters and numbers. I have summarized some general conditions here.

Perfect Uncirculated (MS-70) This indicates a coin in perfect, new condition. It shows no trace of handling, wear, or contact with other coins.

Gem Uncirculated (MS-65) This is an above average uncirculated coin. It may be brilliant, or it may be lightly toned. There are very few contact marks either on either surface of the coin or on the rim.

Choice Uncirculated (MS-63) This coin has some distracting contact marks and/or blemishes in the prime focal areas of one or both surfaces. The luster of the coin may be impaired.

Uncirculated (MS-60) This coin has no trace of wear, but it may show several contact marks, and the surface of the coin may lack luster, or even be spotted.

Choice About Uncirculated (AU-55) There is evidence of friction on the high points of the coin's design, but most of the mint luster remains.

About Uncirculated (AU-50) This coin shows traces of light wear on many of the high points of the coin. At least half of the original mint luster is still present.

Choice Extremely Fine (EF-45) The coin exhibits light overall wear on the highest points of the coin. Some of the original mint luster is still evident. All design details are still very clear and sharp.

Extremely Fine (EF-40) There is light wear throughout the design, but all features of the design are still sharp and well-defined. Although not an essential element to the the definition of this grade, some traces of mint luster may still exist.

Choice Very Fine (VF-30) Light, even wear on the surface and highest parts throughout the design. All major features of the design, as well as al lettering remain sharp.

Very Fine (VF-20) While all major details of the design remain clear, there is moderate wear on high points of the coin's design.

Fine (F-12) There is moderate to considerable even wear. The design remains bold, and the overall appearance of the coin is still pleasing to the eye.

Very Good (VG-8) The coin is well worn with the main features of the design remaining clear and bold, although they have been worn somewhat flat.

Good (G-4) This coin is heavily worn. The design is still visible, but many of the details are flat, and the design is faint in some areas.

About Good (AG-3) This coin is very heavily worn with portions of the lettering, date, and legend have been worn smooth. In many instances, the date is barely readable.

One of the great problems which causes people to give up on a hobby, a job, or a quest of any sort is not having a clear idea of what they are doing, where they are going, why they are doing it, or how they are going to get there.

I can hear your objections already. This is a hobby! I'm just in it for the fun! And that's a great answer if that will keep you motivated and move you in a direction which interests you! Personally, if I start doing something just to stay busy, I get bored. I lose interest. And I give up. It may take a few years, or I may stop the day after I start. Sometimes that's just fine. But I've found that if I ask myself a few questions before I get started, I'll probably have more fun, make more friends, and accomplish more than I would have otherwise.

If my answers to the questions come together to say, "I'm just trying to spend a few hours having fun," that's good enough. But sometimes I find that I want more.

Here are some questions that you can ask yourself about Coin Collecting to help you determine the why and hows regarding your new hobby. I hope this gives you some useful ideas!

I don't know anyone who hasn't collected SOMETHING at one time or another, and coins are a very poplular collectible. Whether it be the idea that you are actually collecting money, or the belief that you will be able to make money when you sell coins that you have collected, or the love of fine engraving, or the connectedness that historic coins make you feel to the nation itself, collecting coins is a great hobby.

And deciding what it is about coins that makes you want to collect them is a good way to start out with the hobby. Knowing why you are collecting coins will help you decide what to look out, how to display your collection, even how much you spend.

If you are looking at the artistic value of the coins involved, you may do well to only collect Proof Sets, specially struck for coin collectors. The detail and finish on these coins is far above all but the very finest coins that you will ever find in circulaton.

If History is your hot spot, perhaps a Presidential Dollar or State Quarter set is where you should start. Or maybe even a commemorative set like the Presidential Spouxe commemorative coins! Perhaps specific years would be something that would pique your interest.

Maybe you just want to collect a specific metal. Some people love the look of gold, and believe that holding gold in coin form is a great investment, or at least a safety net should the economy collapse.

There is something in coin collecting for everyone.

There is no "right kind of collector" when it comes to coin collecting. Each of us is different, and each of us has a different set of goals when it comes to collecting coins.
The way I see it, there are six kinds of people who collect coins.
~The FUN SEEKER
These folks are frequently in the hobby for the short run. It looked interesting, but they have no real intention of becoming serious. If they organize their collection at all, they usually store it in a closet, a dresser drawer, an attic, or some other place where the coins will not "get in the way." The coins come out when our collector sees something new or interesting, and not much more than that. The collector gathers whatever is new, or hot, or has caught his fancy this week. Lest I give you the wrong impression, there is absolutely nothing wrong with this type of collecting. Frankly, it probably characterizes the nature of the majority of "coin collections" among the population in general.
~The ACCUMULATOR
The goal of the Accumulator is exactly that--to accumulate coins. Some accumulate only "old" coins, which has a different meaning for ever person. Right now I'm fifty four years old. My daughter is thirteen She looks at my Lincoln Cents from the 1980's and declares them "old," and she wants to know if my "Wheaties" from the 1940's and 1950's have attained the status of "Ancient" yet. Some accumulate just one type of coin, regardless of age or condition. Some people accumulate coins made of a specific metal, no matter what the coin is. "Just Silver," or "Only Copper," or maybe "Exclusively Gold" is their mantra, and nothing else matters.
~The COLLECTOR
The Collector seems somewhat more serious than the accumulator, but I would probably term him more organized than the accumulator. The Collector frequently knows about denominations, mint marks, which years are key dates, and the like. He will have Whitman Folders into which he inserts his coins, so that the collection is readily viewable. He will be able to tell you what coins he lacks, and the dream coins he would like to have. Some people in the hobby refer to these people as "Slot Fillers," because their goal is to fill the slots in the folders.
~The POCKET PIECE EVANGELIST
The Pocket Piece Evangelist may be my favorite type of collector. Their collection may consist of a single coin or several dozen which rotate into and out of the collector's pocket. Whether the coin is a "good luck piece" or "something interesting to show the kids down the street," this collector genuinely loves specific coins. My father's 1924 Peace Dollar was one of these coins. It was worn almost smooth, but it went into his pocket every day from the day he enlisted in the Navy during World War II until his death in 1986, and he showed it off at the slightest provocation! If the coin (or the story surrounding the coin) is remarkable enough, it is amazing how many kids will grown interested in the hobby!
~The COIN LOVER
The Coin Lover collects coins based on their beauty. The goal is not to have the best collection, but rather a collection that, when it is viewed, will dazzle the viewer. Well struck, high grade coins predominate. The Coin Lover's collection may not be as large as some, but the coins in it will be
~The NUMISMATIST
Some folks would call the Numismatist the serious hobbyist or the professional. The Numismatist studies the coins themselves so that
~THE INVESTOR
The Investor is the kind of person who wants to make money from the hobby. He is more interested in "getting a good deal" than he is in "getting a good coin." The goal is to be able to sell the coin for a profit after it has been acquired.

There are no clear rules on how to go about obtaining coins. Collectors have been successful following any or all of these approaches.
~Find Them In Pocket Change. We all pick up coins every day. Change from purchases. Found on the street. I'll just go through my change.
~Rolls of Coins from the Bank. An organized hunt through coins gathered by your bank or credit union.
~Estate Sales and Individual Collectors (Either by Individual Sale or by Auction). Buy coins that others have already found interesting!
~Local Coin Shops A local source of interesting coins and information.
~National Retailers Often have coins you won't find locally...greater variety.
~Coin Shows See a big variety of coins. Negotiate purchases. Meet dealers and collectors. Have fun.
*Online Auctions

Three is almost nothing worse than going to a coin show, seeing a coin that might be at an awfully good price, and then asking yourself:
- Do I already have this coin?
- Is this coin in better condition than the one I have?
- Is this coin one of my "high priority" coins?
If you are at all serious about your coin collection you need to find a way to keep track of your coins. You will probably want to know the answers to these questions:
What Coins Do I Have? (By Year and Mintmark)
What Condition is Each Coin In? Are There Any Unusual Characteristics?
How Much Did I Pay For Each Coin?

A Great Shirt to let folks know that you are a Coin Collector.