Coins Collection

Coins have been always been a part of our country’s history. Prominent people are featured on them. A change of government is sometimes accompanied by a change of currency. The look and feel of these coins reflects the advancements in technology as scientists find more complex metal combinations.

Coins’ being of historical value is one of the many factors why people collect them. Beauty and variety also contribute to the collector’s growing numbers.

To be a collector, you must be aware of how to ascertain the worth of your coins. Who knows, you might just be holding on to a very rare artifact, or one that would cost millions on an auction or bidding.

First step in being a coin collector is to look up literature. You need to be in the know of what coins are available out there, where to get them and how to get them. This is extremely valuable to one who’d see the coins as a form of investment.

You also need to determine four things before you take a coin to your collection. You need to identify them, have them authenticated and examine them for damage. This would be vital points to consider in collection coins.

To identify them, you need to look at your coins very thoroughly and note the shape, the colors, and the writings. You also need to verify which country issued that coin. If there is no denomination on the face of the coins, it’s just a token or probably a medal.

Authentic coins should be treasured and prized. They’re hard to find, especially if they are rare, limited issues. A lot of fakes and counterfeit coins are available in the market, so beware!

The value of your coin will depend upon its grade. Coin catalogs usually have their own, specific grading guidelines but here’s a general list of them.

* Mint State Perfect Uncirculated (MS-70) is an uncirculated coin. It should show no apparent damage and be in top shape. It is considered to be the best quality of coin possible.

* Uncirculated (MS-60) is another uncirculated coin having a few scratches on contact marks and that have lost some of its sheen.

* About Uncirculated (AU-50) is a coin which has evidence of light wear on most parts but still retains at least half of its original sheen.

* Extremely Fine (EF-40) is coin wherein the coin design is lightly worn off but the features can be still distinguished and are still quite sharp.

* Very Fine (VF-20) is another coin wherein some of fine details like hair or eyebrows are mostly worn off. There is evidence of modest wear on some points of the design but all major parts are still clearly etched.

* Very Good (VG-8) is a coin wherein even though the rim is still clearly visible, the design is almost worn off and only few details of it are clear.

* Good (G-4) are coins that are heavily worn but the design and the legend are still visible. Much of the details are gone.

* About Good (AG-3) are coins that are very heavily worn that some of the lettering and the original design are not discernible anymore.

Damaged coins come across frequently in the course of a collector’s quest. Most collectors steer off coins that have undergone cleaning or re-polishing. Corroded, scratched and drilled into coins are also a big turn off. Although it’s sometimes hard to find one, it’s better to find an untampered specimen.

The question on most beginners’ minds is this: How much do I get paid for a particular coin. The answer is: It varies everywhere. It depends on the qualities of the coin as well as the guide the buyer is using. For a general idea of pricing, here’s a quick list.

1. U.S. wheat cents (1958 and earlier) that were in circulation goes for a few cents to 3 dollars each.

2. 1943 “steel pennies are very uncommon and of high value 1943 cents set on a normal bronze planchet. They are tested to determine if it attracts magnets and if so, it is plated using copper. They are sold for 5 to 50 cents if circulated, and up to a dollar or two if not in circulation.

3. Silver dimes, quarter and half dollars from 1964 or earlier are composed of almost 90% silver. So their amount depends on their silver content.

4. Silver dollars from 1935 and up are collector favorites and can be usually be sold for more than their value in silver . The less common the date, the higher the pricing goes.

5. Susan B. Anthony dollars are worth about one dollar.

6. Bicentennial quarters, half and dollars are usually worth what’s on their face value.

7. Coins in commemoration of the wedding of Prince Charles and Princess Diana are spotted to cost from $5 to $30.

8. A coin with two heads, tails or those that have different designs of two coins have no value to collectors because they are coins that have been change to introduce a novelty item.

There are also the kinds of coins that are made by mistake. These are called ‘mules’ and are often produced because of an error in pairing different dies. Expect rare coins like these to cost a little higher than most.

So with these things in mind, have fun in making your own collection grow. Who knows what part of history you’ll discover by finding rare specimens.

Lee Dobbins writes for http://collecting.leisure-webzone.com where you can learn more about coins and other antiques and collectibles.

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While some collectors look for only coins of value, misprints, and oddities, the resulting collections tend to become an investment hidden away in a safe or an attic.

The world coin collector is more a person who is interesting in building an intriguing collection based more on geography, gathering coins from every country, or from each mint. The focus is more on creating a structured set and can be geared toward many different interests, ie. Animal coins of Europe, Silver coins of the world, North American coins sorted by year, ect The point is to create a ’show piece collection’ rather then just for monitary value.

Collecting world coins is a great starting point for children due to many inexpensive currencies. They can be found in penny jars, at banks, coin/jewelry shops, or just walking down the street.

If you do any world traveling, visit a local bank and get a set of local coins at face value. When friends and reletive travel, let them know you are collecting, and that you will buy any coins they bring back, or that they make a great inexpensive souvinier.

Many hobby shops carry display cases to pretect and show off your collection, and specific collector cases such as for the new US quarters, and yearly pennies, nickles and dimes can sometime be found at your local Target or Walmart.

A good way to find more information and meet other collectors is simply searching the net for collecting forums and blogs, try the world coin collecting blog, or stop by Ebay and see what’s up for auction–ebay.

Adam Kirby
Avid collector of coins, stamps, and Disney merchandise since 1983
world coin collecting blog
world coin collecting

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The first coins ever invented were probably stamped ingots of electrum, a mixture of gold and silver, created by the Lydians, a people of Asia Minor, in about 650BC. The most famous Lydian was King Croesus who introduced pure gold coins and was the inspiration behind the expression ‘as rich as Croesus’. Will you become as rich as Croesus yourself if you invest in coins? With careful planning the answer could well be in the affirmative. Because according to specialists, Noble Investments, long-term coin collections spanning a period of 50 years or more have achieved compound annual returns of 8.7% - 10.5% a year - which certainly matches or betters just about every major stock market in the world. Furthermore, short-term performance has also been strong. A random portfolio of gold and silver coins selected from Spinks auction catalogue in 2000 would have shown a compound annual return of 12%.

There is plenty of other evidence to suggest that coins would currently make an addition to any investment portfolio. ‘Investment-quality coins are in the early stages of a long-awaited major upswing,’ according to Barry Stuppler, publisher of Coin Connoisseur magazine, ‘investors have responded to recent stock market declines and geo-political strife by retreating to safe-haven assets, including metals. Collectable coins should demand even higher premiums because they are in such short supply.’ His optimism is shared by Peter Temple of the Financial Times who recently wrote that: ‘the higher levels of inflation now becoming apparent in western economies are making collectables such as stamps and coins almost a no-brainer.’

Nor must it be forgotten that the coin market is both global and relatively liquid. A rare coin is easy to store and transport plus it can be sold quickly and inexpensively anywhere in the world thanks to a plethora of collectors, dealers, auction houses, and the internet - something which cannot be said of many alternative investments; added to which there is the pleasure of collecting something of intrinsic interest. Numismatics offers a fascinating link with the past and offers an excuse to study everything from history to economics and from theology to metallurgy. Coins are an art form, too. It is generally considered that the masterpieces of the coin world were produced in the Greek colony of Sicily in the fifth and fourth centuries BC. Take a silver decadrachm struck in Syracuse in around 400BC. The work of Euainetos, its obverse features a fast quadriga driven by a female charioteer. The sense of speed is achieved by two of the horses slightly rearing and the hooves - all of which are above the ground - forming a jagged broken pattern. A coin such as this is, frankly, a thing of great beauty as well as of great value.

What sort of coins should you invest in to optimise your returns?

There are two approaches you could take. The first is to diversify - buying the best examples you can afford across a wide range of different categories. Everything from Ancient Greek Coinage to modern commemorative sets. The benefit of this strategy is that the value of your collection will not be vulnerable to the vagaries of fashion. On the other hand, it is not necessarily as interesting as specialising in one or more areas and you may miss out on the spectacular growth which can be achieved with a little speculative foresight. For example, up until the late 1970s, little attention was paid to the intriguing Islamic coinages of the Middle East. Arabs themselves were not attracted to their past coinage and consequently the market for Islamic coins was confined to a small band of dedicated scholars and collectors. However, all this altered when Arabs developed a growing awareness of their cultural heritage and began to form collections of numismatic treasures.

Should you decide to build up a collection you could do so by choosing a theme (such as coins featuring a particular animal); a type (the technical term for a main design of coin, issued in a particular country, state or region); a denomination (such as gold sovereigns); a ruler (collecting an example of a coin from each reign of an emperor, king or queen); or commemoratives (in coins that were or are struck to celebrate particular events).

I have already mentioned that you should always buy the best example you can afford. The commercial value of any coin depends on four factors:

1. Its exact design, legend, mintmark or date
2. Its exact state of preservation
3. The demand for it in the market at any given time
4. The availability of similar coins in the market at that time.

Interestingly, the appearance on the market of newly-discovered examples of a coin or of a long-held private collection seems to have the effect of pushing prices up. Even though the supply of available coins has been increased at a stroke, demand rises proportionately more. This situation has become more noticeable in recent years, emphasising that quality coins are becoming more difficult to find. The market has never experienced a state of saturation on the disposal of a quality collection - which is good news for investors.

There are so many possible sources of reference for anyone interested in investing in coins that it is hard to know where to start. If you want to know more about the market in general try http://www.nobleinvestmentsplc.co.uk - the only numismatic trading and investment company listed on the stock market in the UK. The biggest, and longest established coin dealer in the world is probably Spink & Son which, as you would expect, has a superb website (http://www.spinkandson.com). They also publish a fantastic range of reference books on the subject.

One final tip. Prices tend to be highest in country of origin, which means if you search overseas you may find better deals - especially where the pound is stronger than the local currency. Do, however, be cautious about buying from individuals or over the internet. Better to pay slightly more and know you are investing in the genuine article.

Justin Power
http://www.powerreport.net

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