Coin collecting - Gold is it!

Coin collecting for fun and profit

Collecting coins has a long history, though through the ages, it was reserved for truly wealthy - everybody else needed every coin they could get!

More recently, it has become an affordable hobby - mostly because governments throughout the world destroyed value of their currency, and replaced real money ( gold and silver ) with coins made of industrial metals - copper, zinc, etc. - in themselves, practically worthless.

Collecting on a budget

As a result of the modern trend of making coins from industrial metals, their intrinsic value is so low, as to be irrelevant. Thus the nominal value of the coin becomes it's value - making it a lot easier than in the past centuries, to collect coins of various denominations, countries, etc.

Pretty much anyone can start a collection - pennies, nickles, dimes are accessible to anyone - rich or poor, young or old. There is a wealth of knowledge one gains from learning about even the simplest coins - metals, methods of manufacture,
geography, graphic arts, etc.

Collecting States Quarters

With the US Mint creating designs for 50 state quarters, inexpensive collecting became available to anybody who could afford $ 13 - enough to collect every quarter in the series, and a couple to spare :-)
With pretty designs, States Quarters became an instant hit among millions of collectors and noncollectors alike.
They are visually pleasing, and a wonderful introduction to numismatics for the younger generation. Unfortunately, they are not likely to bring much profit to anyone. Struck in huge volume, they are not now, nor ever are they likely to become rare. If you like them, by all means collect them, but do not buy slabbed MS-70 grade coins - they are very expensive compared to actual current and likely future value.

Buffalo Nickles

Some of the prettiest US coins, Buffalo Nickles, have become a highly desired collectors item. There are many that are quite affordable - good quality nickels (grade MS 65) can be had for about $50, yet there are also some very rare specimens that can fetch as much as $20,000 and more. Of course, like with anyting else, one needs to be careful as to authenticity of the coins.
That's why "slabbed" coins - coins graded by professional grading firms and enclosed in tamper resistant plastic casings are in such demand.

Buffalo Nickles on eBay

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Mercury Dimes

Another beautiful coin - Mercury Dime - is also highly sought after. Again, there is a wide range of coins to pick from. From very afforadable, to incredibly expensive. Below are a few examples of the Mercury Dimes.

Mercury Dimes on eBay

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Gold Coins

Dating to the era of real money, gold coins remain a popular, if somewhat pricy collectors' interest.
One can collect European gold coins, or United States gold coins. Until 1933, when FDR - President Frnklin D. Roosevelt - stole America's gold, $20, $10, $5 gold coins were the currency people used in everyday life. For smaller denominations, Americans used silver dollars, silver half dollars, silver quarters and silver dimes. All of them have since become collectibles, some very inexpensive, some worth a small fortune.
The most popular gold coin, and arguably one of the most beautiful coins ever, is the Saint Gaudens $20 coin. Struck for almost 30 years, it offers a challenge to any collector - there are dates that are so affordable, that anybody who can afford an ounce of gold, can afford one of those coins. On the other hand, some years are so rare (for really high quality, uncirculated coins) that the price exceeds hundred thousand dollars.
To the right is an example of a really fine Saint Gaudens $20 coin. You can view more on Ebay - auctions below.

Great Stuff on eBay

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Coin Grading

Coin grading is a subject that can be studied for a lifetime - or more. Until recently, collectors had to rely on the dealer, friends, hired appraisers, or their own skills. Last couple of decades marked a revolution in coin collecting, as professional grading services started grading coins, then sealing them in tamper resistant containers.
As a result, while there is still some variation in the grades, if you get a coin that's graded MS 65 by one of the better grading services, you have a pretty good idea of the quality of the coin.
While there are many grading services, two most popular ( coins graded by them achieve closest to the theoretical value) are
Professional Coin Grading Service (PCGS) and
Numismatic Guaranty Corporation ( NGC)

Generally, coins graded MS 65 or higher are of the high enough quality to warrant serious attention from collectors.

Reference works for new and seasoned coin collectors

Coin Collecting for Dummies

by: Ron Guth

Great book for begineers. Will give you an overview of the hobby, and give a solid introduction to United States coin collecting.

Amazon Price: $19.79 (as of 12/02/2008)

Us Gold Counterfeit Detection Guide (Official Whitman Guidebook)

by: Bill Fivaz

If you are going to collect gold coins, this is a must.

Amazon Price: $15.96 (as of 12/02/2008)

The Official Guide to Coin Grading and Counterfeit Detection Edition, Edition #2 (Official Guide to Coin Grading and Counterfeit Detection)

by: Professional Coin Gradi

Any serious coin collector needs to learn how to grade coins - the difference of one grade could mean difference in value of thousands of dollars. This is THE guide to coin grading.

Amazon Price: $13.57 (as of 12/02/2008)

How to Grade U.S. Coins

by: James L. Halperin

Excellent book by one of the grading greates.

Amazon Price: (as of 12/02/2008)

The Official American Numismati Association Grading Standards For United States Coins (Official American Numismatic Association Grading Standards for United States Coins)

by: Kenneth Bressett, Q. David Bowers

Another excellent resource. If you are ever in Colorado Springs, Colorado, be sure to visit ANA museum - if you like coins, you will go nuts.

Amazon Price: (as of 12/02/2008)

Different money stuff - and some fun - check them out

Check out this lense for more collecting info - cp;ecting investments:
More about ETFs.

Couple other lenses to visit - to take a break from the money game:
Fun

and more fun

Back to money stuff:

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