Coin collecting
Encyclopedia
Coin collecting is the collecting
or trading of coins
or other forms of minted legal tender
.
Coins of interest to collectors often include those that circulated
for only a brief time, coins with mint errors and especially beautiful or historically significant pieces. Coin collecting can be differentiated from numismatics
in that the latter is the systematic study of currency
. Though closely related, the two disciplines are not necessarily the same. A numismatist may or may not be a coin collector and vice versa.
coins for their bullion value for as long as coins have been minted. However, the collection of coins for their artistic value was a later development. Evidence from the archaeological
and historical record of Ancient Rome
and medieval Mesopotamia
indicates that coins were collected and catalogued by scholars and state treasuries. It also seems probable that individual citizens collected old, exotic or commemorative coins as an affordable, portable form of art. According to Suetonius
in his De vita Caesarum (The Lives of the Twelve Caesars), written in the first century CE, the emperor Augustus
sometimes presented old and exotic coins to friends and courtiers during festivals and other special occasions.
Contemporary coin collecting and appreciation began around the fourteenth century. During the Renaissance
coin collecting became a fad
among some members of the privileged classes. The Italian scholar and poet Petrarch
is credited with being the pursuit's first and most famous aficionado. Following his lead, many European kings, princes, and other nobility kept collections of ancient coins. Some of notable collectors were Pope Boniface VIII
, Emperor Maximilian
of the Holy Roman Empire
, Louis XIV of France, Ferdinand I
, Henry IV of France
and Elector Joachim II of Brandenburg
, who started the Berlin Coin Cabinet (German: Münzkabinett Berlin). Perhaps because only the very wealthy could afford the pursuit, in Renaissance times coin collecting became known as the "Hobby of Kings."
During the 17th and 18th centuries coin collecting remained a pursuit of the well-to-do. But rational, Enlightenment
thinking led to a more systematic approach to accumulation and study. Numismatics as an academic discipline emerged in these centuries at the same time as coin collecting became a leisure pursuit of a growing middle class
, eager to prove their wealth and sophistication. During the 19th and 20th centuries, coin collecting increased further in popularity. The market for coins expanded to include, not only antique coins, but foreign or otherwise exotic currency. Coins shows, trade associations and regulatory bodies emerged during these decades. The first international convention for coin collectors was held August 15–18, 1962, in Detroit, Michigan
, and was sponsored by the American Numismatic Association
and the Royal Canadian Numismatic Association. Attendance was estimated at 40,000. As one of the oldest and most popular world pastimes, coin collecting is now often referred to as the "King of Hobbies".
Another frequent reason for purchasing coins is as an investment. As with stamps
, precious metals or other commodities, coin prices are cyclical based on supply and demand
. Prices drop for coins that are not in long-term demand, and increase along with a coin's perceived or intrinsic value
. Investors buy with the expectation that the value of their purchase will increase over the long term. As with all types of investment, the principle of caveat emptor
applies and study is recommended before buying. Likewise, as with most collectibles, a coin collection does not produce income until it is sold, and may even incur costs (for example, the cost of safe deposit box
storage) in the interim.
Coin hoarders may be similar to investors in the sense that they accumulate coins for potential long-term profit. However, unlike investors, they typically do not take into account aesthetic considerations; rather they gather whatever quantity of coins they can and hold them. This is most common with coins whose metal value exceeds their spending value.
Speculators, be they amateurs or commercial buyers, generally purchase coins in bulk and often act with the expectation of short-term profit. They may wish to take advantage of a spike in demand for a particular coin (for example, during the annual release of Canadian numismatic collectibles
from the Royal Canadian Mint
). The speculator might hope to buy the coin in large lots and sell at profit within weeks or months. Speculators may also buy common circulation coins for their intrinsic metal value. Coins without collectible value may be melted down or distributed as bullion for commercial purposes. Typically they purchase coins that are composed of rare or precious metals, or coins that have a high purity of a specific metal.
A final type of collector is the inheritor, an accidental collector who acquires coins (a collection, hoard or investment) from another person as part of an inheritance
. The inheritor may not necessarily have an interest in or know anything about numismatics at the time of the acquisition.
Usually, if the enthusiasm of the novice increases over time, random coins found in circulation are not enough to satisfy their interest. The hobbyist may then trade coins in a coin club
or buy coins from dealers or mints. Their collection takes on a more specific focus.
Some enthusiasts become generalists and accumulate a few examples from a broad variety of historical or geographically significant coins. Given enough resources, this can result in a vast collection. King Farouk of Egypt was a generalist with a collection famous for its scope and variety.
Most collectors decide to focus their financial resources on a narrower, specialist interest. Some collectors focus on coins of a certain nation or historic period. Others will seek error coins
. Still others might focus on exonumia
such as currency
, tokens
or challenge coin
s. For example, John Yarwood of Melbourne is the first person to take a serious interest in British military money (especially tokens).
Some collectors are completists and seek an example of every type of coin within a certain category. Perhaps the most famous of these is Louis Eliasberg
, the only collector thus far to assemble a complete set of known coins of the United States
.
Coin collecting can become a competitive
activity, as prompted by the recent emergence of PCGS (Professional Coin Grading Service
) and NGC (Numismatic Guarantee Corporation) Registry Sets. Registry Sets are private collections of coins verified for ownership and quality by numismatic grading
services. The grading services assess collections, seal the coins in clear plastic holders, then register and publish the results. This can lead to very high prices as dedicated collectors compete for the very best specimens of, for example, each date and mint mark
combination.
Collecting counterfeits and forgeries is a controversial area because of the possibility that counterfeits might someday reenter the coin market as authentic coins, but US statutory and case law do not explicitly prohibit possession of counterfeit coins.
to describe the overall condition of coins.
In the early days of coin collecting—before the development of a large international coin market—extremely precise grades were not needed. Coins were described using only three adjectives: "good," "fine" or "uncirculated". By the mid 20th century, with the growing market for rare coins, the Sheldon system was adopted by the American Numismatic Association
and most coin professionals in the North America. It uses a 1–70 numbering scale, where 70 represents a perfect specimen and 1 represents a barely identifiable coin. The Sheldon Scale uses descriptions and numeric grades for coins (from highest to lowest) is as follows:
While the Sheldon Scale is universally acknowledged, coin experts in Europe and elsewhere often shun the numerical system, preferring to rate specimens on a purely descriptive, or adjectival
, scale. Nevertheless, most grading systems use similar terminology and values and remain mutually intelligible.
When evaluating a coin, the following—often subjective—factors may be considered: 1) "eye appeal" or the aesthetic interest of the coin; 2) dents on the rim; 3) unsightly scratches or other blemishes on the surface of the coin; 4) luster
; 5) toning
; 6) level of detail retained, where a coin with full details obviously is valued higher than one with worn details. If the coin is judged favorably in all of these criteria, it will generally be awarded a higher grade.
Damage of any sort (e.g., holes, edge dents, repairs, cleaning, re-engraving or gouges) can substantially reduce the value of a coin. Specimens are occasionally cleaned or polished in an attempt to pass them off as higher grades or as uncirculated strikes. Because of the substantially lower prices for cleaned or damaged coins, some enthusiasts specialize in their collection.
services are a relatively recent phenomenon, having emerged in the 1980s as a response to the need for buyers and sellers to agree on common measures of a coin's value. Official grading is an effort to bring more confidence to investors in rare coins. Grading services certify the authenticity and rate the quality of individual coins, thus—it is hoped—establishing the worth of the coin relative to all others of its kind. Many coin grading services will also seal coins in a labeled, air-tight plastic holder, ensuring the coin is protected from deterioration. This process is commonly known as coin slabbing and is most prevalent in the US market.
While professional grading has reduced the number of counterfeits
foisted upon investors and has improved buyer confidence substantially, the goal of creating a sight-unseen market for coins remains somewhat elusive. Professional grading services remain the subject of controversy because grading is ultimately subjective; coins may receive different grades by different services or even upon resubmission to the same service. Due to potentially large differences in value over slight differences in a coin's condition, some commercial coin dealers will repeatedly resubmit a coin to a grading service in the hope of a higher grade. Furthermore, grading services are not free, and by using them collectors funnel money into an ancillary aspect of the hobby, instead of purchasing additional material for their collections.
The two most prominent grading services at present are the Numismatic Guaranty Corporation
(NGC) and the Professional Coin Grading Service
(PCGS). The least reputable coin dealers have a growing tendency to sell higher graded coins via sales pitches claiming that grading removes subjectivity as to the value of mint state coins. Dealers that sponsor infomercials on shortwave
radio are notorious for such sales pitches, most notably Discount Gold & Silver Trading on WWCR
.
Collecting
The hobby of collecting includes seeking, locating, acquiring, organizing, cataloging, displaying, storing, and maintaining whatever items are of interest to the individual collector. Some collectors are generalists, accumulating merchandise, or stamps from all countries of the world...
or trading of coins
COinS
ContextObjects in Spans, commonly abbreviated COinS, is a method to embed bibliographic metadata in the HTML code of web pages. This allows bibliographic software to publish machine-readable bibliographic items and client reference management software to retrieve bibliographic metadata. The...
or other forms of minted legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
.
Coins of interest to collectors often include those that circulated
Circulation (currency)
The social system in which we live has usually developed to the stage for money to be used as the medium for the exchange of goods and services. Hence the money is an important aspect of the general social or macroeconomics system...
for only a brief time, coins with mint errors and especially beautiful or historically significant pieces. Coin collecting can be differentiated from numismatics
Numismatics
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
in that the latter is the systematic study of currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
. Though closely related, the two disciplines are not necessarily the same. A numismatist may or may not be a coin collector and vice versa.
History
People have hoardedHoarding
Hoarding or caching is a general term for a behavior that leads people or animals to accumulate food or other items in anticipation of future need or scarcity.-Animal behavior:...
coins for their bullion value for as long as coins have been minted. However, the collection of coins for their artistic value was a later development. Evidence from the archaeological
Archaeological record
The archaeological record is the body of physical evidence about the past. It is one of the most basic concepts in archaeology, the academic discipline concerned with documenting and interpreting the archaeological record....
and historical record of Ancient Rome
Ancient Rome
Ancient Rome was a thriving civilization that grew on the Italian Peninsula as early as the 8th century BC. Located along the Mediterranean Sea and centered on the city of Rome, it expanded to one of the largest empires in the ancient world....
and medieval Mesopotamia
Mesopotamia
Mesopotamia is a toponym for the area of the Tigris–Euphrates river system, largely corresponding to modern-day Iraq, northeastern Syria, southeastern Turkey and southwestern Iran.Widely considered to be the cradle of civilization, Bronze Age Mesopotamia included Sumer and the...
indicates that coins were collected and catalogued by scholars and state treasuries. It also seems probable that individual citizens collected old, exotic or commemorative coins as an affordable, portable form of art. According to Suetonius
Suetonius
Gaius Suetonius Tranquillus, commonly known as Suetonius , was a Roman historian belonging to the equestrian order in the early Imperial era....
in his De vita Caesarum (The Lives of the Twelve Caesars), written in the first century CE, the emperor Augustus
Augustus
Augustus ;23 September 63 BC – 19 August AD 14) is considered the first emperor of the Roman Empire, which he ruled alone from 27 BC until his death in 14 AD.The dates of his rule are contemporary dates; Augustus lived under two calendars, the Roman Republican until 45 BC, and the Julian...
sometimes presented old and exotic coins to friends and courtiers during festivals and other special occasions.
Contemporary coin collecting and appreciation began around the fourteenth century. During the Renaissance
Renaissance
The Renaissance was a cultural movement that spanned roughly the 14th to the 17th century, beginning in Italy in the Late Middle Ages and later spreading to the rest of Europe. The term is also used more loosely to refer to the historical era, but since the changes of the Renaissance were not...
coin collecting became a fad
FAD
In biochemistry, flavin adenine dinucleotide is a redox cofactor involved in several important reactions in metabolism. FAD can exist in two different redox states, which it converts between by accepting or donating electrons. The molecule consists of a riboflavin moiety bound to the phosphate...
among some members of the privileged classes. The Italian scholar and poet Petrarch
Petrarch
Francesco Petrarca , known in English as Petrarch, was an Italian scholar, poet and one of the earliest humanists. Petrarch is often called the "Father of Humanism"...
is credited with being the pursuit's first and most famous aficionado. Following his lead, many European kings, princes, and other nobility kept collections of ancient coins. Some of notable collectors were Pope Boniface VIII
Pope Boniface VIII
Pope Boniface VIII , born Benedetto Gaetani, was Pope of the Catholic Church from 1294 to 1303. Today, Boniface VIII is probably best remembered for his feuds with Dante, who placed him in the Eighth circle of Hell in his Divina Commedia, among the Simonists.- Biography :Gaetani was born in 1235 in...
, Emperor Maximilian
Emperor Maximilian
Emperor Maximilian may refer to:* Maximilian I, Holy Roman Emperor * Maximilian II, Holy Roman Emperor * Maximillian I of Mexico, Austrian-born royal, Emperor of Mexico...
of the Holy Roman Empire
Holy Roman Empire
The Holy Roman Empire was a realm that existed from 962 to 1806 in Central Europe.It was ruled by the Holy Roman Emperor. Its character changed during the Middle Ages and the Early Modern period, when the power of the emperor gradually weakened in favour of the princes...
, Louis XIV of France, Ferdinand I
Ferdinand I, Holy Roman Emperor
Ferdinand I was Holy Roman Emperor from 1558 and king of Bohemia and Hungary from 1526 until his death. Before his accession, he ruled the Austrian hereditary lands of the Habsburgs in the name of his elder brother, Charles V, Holy Roman Emperor.The key events during his reign were the contest...
, Henry IV of France
Henry IV of France
Henry IV , Henri-Quatre, was King of France from 1589 to 1610 and King of Navarre from 1572 to 1610. He was the first monarch of the Bourbon branch of the Capetian dynasty in France....
and Elector Joachim II of Brandenburg
Joachim II Hector, Elector of Brandenburg
Joachim II Hector was a Prince-elector of the Margraviate of Brandenburg . A member of the House of Hohenzollern, Joachim II was the son of Joachim I Nestor, Elector of Brandenburg, and his wife Elizabeth of Denmark, Norway, and Sweden...
, who started the Berlin Coin Cabinet (German: Münzkabinett Berlin). Perhaps because only the very wealthy could afford the pursuit, in Renaissance times coin collecting became known as the "Hobby of Kings."
During the 17th and 18th centuries coin collecting remained a pursuit of the well-to-do. But rational, Enlightenment
Age of Enlightenment
The Age of Enlightenment was an elite cultural movement of intellectuals in 18th century Europe that sought to mobilize the power of reason in order to reform society and advance knowledge. It promoted intellectual interchange and opposed intolerance and abuses in church and state...
thinking led to a more systematic approach to accumulation and study. Numismatics as an academic discipline emerged in these centuries at the same time as coin collecting became a leisure pursuit of a growing middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....
, eager to prove their wealth and sophistication. During the 19th and 20th centuries, coin collecting increased further in popularity. The market for coins expanded to include, not only antique coins, but foreign or otherwise exotic currency. Coins shows, trade associations and regulatory bodies emerged during these decades. The first international convention for coin collectors was held August 15–18, 1962, in Detroit, Michigan
Detroit, Michigan
Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River...
, and was sponsored by the American Numismatic Association
American Numismatic Association
The American Numismatic Association was founded in 1891 by Dr. George F. Heath in Chicago, Illinois. The ANA was formed to advance the knowledge of numismatics along educational, historical and scientific lines, as well as enhance interest in the hobby.The ANA national headquarters and museum is...
and the Royal Canadian Numismatic Association. Attendance was estimated at 40,000. As one of the oldest and most popular world pastimes, coin collecting is now often referred to as the "King of Hobbies".
Motivations for coin collecting
The motivations for collecting are varied. Possibly the most common type of collector is the hobbyist, who amasses a collection purely for fun with no real expectation of profit. This is especially true of casual collectors and children who collect items on the basis of chance and personal interest.Another frequent reason for purchasing coins is as an investment. As with stamps
Philatelic investment
Philatelic investment is investment in collectible postage stamps for the purpose of realizing a profit. Philatelic investment was popular during the 1970s but then fell out of favour following a speculative bubble and prices of rare stamps took many years to recover. Investing in rare stamps...
, precious metals or other commodities, coin prices are cyclical based on supply and demand
Supply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
. Prices drop for coins that are not in long-term demand, and increase along with a coin's perceived or intrinsic value
Value (economics)
An economic value is the worth of a good or service as determined by the market.The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods...
. Investors buy with the expectation that the value of their purchase will increase over the long term. As with all types of investment, the principle of caveat emptor
Caveat emptor
Caveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
applies and study is recommended before buying. Likewise, as with most collectibles, a coin collection does not produce income until it is sold, and may even incur costs (for example, the cost of safe deposit box
Safe deposit box
A safe deposit box or wrongly referred to as a safety deposit box is an individually-secured container, usually held within a larger safe or bank vault. Safe deposit boxes are generally located in banks, post offices or other institutions...
storage) in the interim.
Coin hoarders may be similar to investors in the sense that they accumulate coins for potential long-term profit. However, unlike investors, they typically do not take into account aesthetic considerations; rather they gather whatever quantity of coins they can and hold them. This is most common with coins whose metal value exceeds their spending value.
Speculators, be they amateurs or commercial buyers, generally purchase coins in bulk and often act with the expectation of short-term profit. They may wish to take advantage of a spike in demand for a particular coin (for example, during the annual release of Canadian numismatic collectibles
Royal Canadian Mint numismatic coins (2000s)
One of the most highly profitable aspects of the Royal Canadian Mint’s enterprise is in its Numismatic product line. The euphoria surrounding the year 2000 led to the birth of the Millennium 25-cent coin program. The numismatic line included proof quality coins sold individually or as a complete...
from the Royal Canadian Mint
Royal Canadian Mint
The Royal Canadian Mint produces all of Canada's circulation coins, and manufactures circulation coins on behalf of other nations. The Mint also designs and manufactures: precious and base metal collector coins; gold, silver, palladium, and platinum bullion coins; medals, as well as medallions and...
). The speculator might hope to buy the coin in large lots and sell at profit within weeks or months. Speculators may also buy common circulation coins for their intrinsic metal value. Coins without collectible value may be melted down or distributed as bullion for commercial purposes. Typically they purchase coins that are composed of rare or precious metals, or coins that have a high purity of a specific metal.
A final type of collector is the inheritor, an accidental collector who acquires coins (a collection, hoard or investment) from another person as part of an inheritance
Inheritance
Inheritance is the practice of passing on property, titles, debts, rights and obligations upon the death of an individual. It has long played an important role in human societies...
. The inheritor may not necessarily have an interest in or know anything about numismatics at the time of the acquisition.
Collector types
Casual coin collectors often begin the hobby by saving notable coins found by chance. These coins may be pocket change left from an international trip or an old coin found in circulation.Usually, if the enthusiasm of the novice increases over time, random coins found in circulation are not enough to satisfy their interest. The hobbyist may then trade coins in a coin club
Club
A club is an association of two or more people united by a common interest or goal. A service club, for example, exists for voluntary or charitable activities; there are clubs devoted to hobbies and sports, social activities clubs, political and religious clubs, and so forth.- History...
or buy coins from dealers or mints. Their collection takes on a more specific focus.
Some enthusiasts become generalists and accumulate a few examples from a broad variety of historical or geographically significant coins. Given enough resources, this can result in a vast collection. King Farouk of Egypt was a generalist with a collection famous for its scope and variety.
Most collectors decide to focus their financial resources on a narrower, specialist interest. Some collectors focus on coins of a certain nation or historic period. Others will seek error coins
Mint-made errors
Mint-made errors are errors in a coin made by the mint during the minting process. Mint error coins can be the result of deterioration of the minting equipment, accidents or malfunctions during the minting process, or intentional interventions by mint personnel...
. Still others might focus on exonumia
Exonumia
Exonumia are numismatic items other than coins and paper money. This includes "Good For" tokens, badges, counterstamped coins, elongated coins, encased coins, souvenir medallions, tags, wooden nickels and other similar items...
such as currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
, tokens
Token coin
In the study of numismatics, tokens are coin-like objects used instead of coins. The field of tokens is part of exonumia. Tokens are used in place of coins and either have a denomination shown or implied by size, color or shape...
or challenge coin
Challenge coin
A challenge coin is a small coin or medallion , bearing an organization’s insignia or emblem and carried by the organization’s members. They are given to prove membership when challenged and to enhance morale. In addition, they are also collected by service members.- Origins of the challenge coin...
s. For example, John Yarwood of Melbourne is the first person to take a serious interest in British military money (especially tokens).
Some collectors are completists and seek an example of every type of coin within a certain category. Perhaps the most famous of these is Louis Eliasberg
Louis Eliasberg
Louis E. Eliasberg, Sr. was an American financier and numismatist. He is best known in the numismatic community for putting together the only complete collection of United States coins ever assembled...
, the only collector thus far to assemble a complete set of known coins of the United States
United States coinage
United States coinage was first minted by the new republic in 1792. New coins have been produced every year since then and they make up a valuable aspect of the United States currency system. Today circulating coins exist in denominations: $0.01, $0.05, $0.10, $0.25, $0.50, and $1.00. Also minted...
.
Coin collecting can become a competitive
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
activity, as prompted by the recent emergence of PCGS (Professional Coin Grading Service
Professional Coin Grading Service
PCGS is the acronym for Professional Coin Grading Service a third party grading service for grading rare coins. Founded in 1986, and located in Newport Beach, CA., it is a subsidiary of Collector's Universe, Inc. , a company that also buys and sells rare coins and operates a rare comic book...
) and NGC (Numismatic Guarantee Corporation) Registry Sets. Registry Sets are private collections of coins verified for ownership and quality by numismatic grading
Coin grading
In coin collecting coin grading is the process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector's item....
services. The grading services assess collections, seal the coins in clear plastic holders, then register and publish the results. This can lead to very high prices as dedicated collectors compete for the very best specimens of, for example, each date and mint mark
Mint mark
A mint mark is an inscription on a coin indicating the mint where the coin was produced.-History:Mint marks were first developed to locate a problem. If a coin was underweight, or overweight, the mint mark would immediately tell where the coin was minted, and the problem could be located and fixed...
combination.
Common collection themes
A few common themes are often combined into a goal for a collection:- Country collections: Many enthusiasts focus their collection on only a single country—often their own. In contrast, some collectors attempt to obtain a sample from every country that has issued a coin.
- Year collections: Rather than being satisfied with a single specimen of a type, a great many collectors collect type by year; for example, one Memorial Lincoln Cent for every year from 1959 (the year it was first minted) to present. This is perhaps one of the most practical ways to collect a national currency since probably the majority of coin reference books and coin albums catalogue in the same manner.
- Mint mark collections: Many collectors consider different mint markMint markA mint mark is an inscription on a coin indicating the mint where the coin was produced.-History:Mint marks were first developed to locate a problem. If a coin was underweight, or overweight, the mint mark would immediately tell where the coin was minted, and the problem could be located and fixed...
s significant enough to justify representation in their collection. When collecting coins by year, this multiplies the number of specimens needed to complete a collection. Some mint marks are more common than others.
- Variety collections: Because mints generally issue thousands or millions of any given coin, they use multiple sets of coin dies to produce the same coin. Occasionally these dies have slight differences. This was more common on older coins because the coin dies were hand carved. But differences—intentional or accidental—still exist on coins today. Generally this is in a very small detail, such as the number of leaves on the ear of corn on the recent US Wisconsin state quarter :File:2004 WI Proof.png.
- Type collections: Often a collection consists of an examples of major design variants for a period of time in one country or region. For example, Euro coins carry a "common side" that shows the denomination and a "national side" that varies in design from state to state within the EurozoneEurozoneThe eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
. Likewise, a type collection might focus on an unusual design feature such as coins with a hole in the middle, coins that are not circular in shape or coins with brockageBrockageIn coin collecting, brockage refers to a type of error coin in which one side of the coin has both the normal image and a mirror image of the opposite side impressed upon it....
.
- Composition collections: For some, the metallurgical composition of the coin itself is of interest. For example, a collector might collect only bimetallic coins. Precious metals like gold, silver, copper and platinum are of frequent interest to collectors, but enthusiasts also pursue historically significant pieces like the 1943 steel cent1943 steel centThe 1943 steel cent, also known as a steelie, was a variety of the U.S. one-cent coin which was struck in steel due to wartime shortages of copper. It was designed by Victor D...
or the 1974 aluminum cent1974 aluminum centThe 1974 aluminium cent was a one-cent coin proposed by the United States Mint in 1973. It was composed of an alloy of aluminium and trace metals, and intended to replace the predominantly copper–zinc cent due to the rising costs of coin production in the traditional bronze alloy. 1,571,167 were...
.
- Subject collections: Collectors with an interest in a certain subject (such as, ships or eagles) may collect only coins depicting that interest.
- Period collections: Collectors may restrict themselves to coins of the 18th or 19th century, while others collect ancient and medieval coins. Coins of RomanRoman currencyThe Roman currency during most of the Roman Republic and the western half of the Roman Empire consisted of coins including the aureus , the denarius , the sestertius , the dupondius , and the as...
, Byzantine, Greek origin are amongst the more popular ancient coins collected. Some collect coins minted during a particular ruler's reign or a representative coin from each ruler. Collectors may also take interest in money issued during the administration of a historically significant bureaucrat such as a central bankCentral bankA central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
governor, treasurerTreasurerA treasurer is the person responsible for running the treasury of an organization. The adjective for a treasurer is normally "tresorial". The adjective "treasurial" normally means pertaining to a treasury, rather than the treasurer.-Government:...
or finance secretary. For example, Reserve Bank of IndiaReserve Bank of IndiaThe Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
governor James Braid TaylorJames Braid TaylorSir James Braid Taylor, KCIE, Kt was the second Governor of the Reserve Bank of India from 1 July 1937 until he died in office on 17 February 1943. He succeeded Sir Osborne Smith who was the Governor from 1 April 1935 to 30 June 1937...
presided over the country's move from silver currency to fiat moneyFiat moneyFiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.Fiat money originated in 11th...
. Coins reflect the events of the time in which they are produced, so coins issued during historically important periods are especially interesting to collectors.
- Printed value collections: A currency collection might be modeled around the theme of a specific printed value, for example, the number 1. This collection might include specimens of the US 1 dollar coin, the Canadian LoonieLoonieThe Canadian 1 dollar coin is a gold-coloured, bronze-plated, one-dollar coin introduced in 1987. It bears images of a common loon, a bird which is common and well known in Canada, on the reverse, and of Queen Elizabeth II on the obverse.The design for the coin was meant to be a voyageur theme,...
, the Euro1 euro coins1 euro coins are made of two alloys: the inner part of cupronickel, the outer part of nickel brass. All coins have a common reverse side and country-specific national sides...
, 1 Indian RupeeIndian rupeeThe Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
and 1 Singapore dollarSingapore dollarThe Singapore dollar or Dollar is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies...
.
- Volume collections (Hoards): Collectors may have an interest in acquiring large volumes of a particular coins (e.g., as many pennies as they can store). These usually are not high-value coins, but the interest is in collecting a large volume of them either for the sake of the challenge, as a store of value, or in the hope that the intrinsic metal value will increase.
- Copy collections: Some collectors enjoy acquiring copiesReplicaA replica is a copy closely resembling the original concerning its shape and appearance. An inverted replica complements the original by filling its gaps. It can be a copy used for historical purposes, such as being placed in a museum. Sometimes the original never existed. For example, Difference...
of coins, sometimes to complement the authentic coins in their collections. Copies might be:- contemporaneous ancient copies minted as official coins by other cities or rulers
- contemporaneous ancient copies minted as counterfeitCounterfeitTo counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...
s (often gold- or silver-plated) to fool merchants and consumers - contemporaneous modern copies minted as counterfeits to fool merchants and consumers
- modern copies of older coins minted as forgeries to fool collectors
- modern copies sold as replicas (often, but not always, marked as such)
- modern copies minted for museums to be displayed instead of the originals
- modern copies made to be used in jewelry
- modern copies as official circulating coins that pay tribute to the original coin
- modern copies as bullion collectable coins that pay tribute to the original coin
- modern copies as medals or tokens that pay tribute to the original coin
Collecting counterfeits and forgeries is a controversial area because of the possibility that counterfeits might someday reenter the coin market as authentic coins, but US statutory and case law do not explicitly prohibit possession of counterfeit coins.
Coin condition and value
In coin collecting, the condition of a coin is paramount to its value; a high-quality example is often worth many times more than a poor example. Collectors have created systemsCoin grading
In coin collecting coin grading is the process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector's item....
to describe the overall condition of coins.
In the early days of coin collecting—before the development of a large international coin market—extremely precise grades were not needed. Coins were described using only three adjectives: "good," "fine" or "uncirculated". By the mid 20th century, with the growing market for rare coins, the Sheldon system was adopted by the American Numismatic Association
American Numismatic Association
The American Numismatic Association was founded in 1891 by Dr. George F. Heath in Chicago, Illinois. The ANA was formed to advance the knowledge of numismatics along educational, historical and scientific lines, as well as enhance interest in the hobby.The ANA national headquarters and museum is...
and most coin professionals in the North America. It uses a 1–70 numbering scale, where 70 represents a perfect specimen and 1 represents a barely identifiable coin. The Sheldon Scale uses descriptions and numeric grades for coins (from highest to lowest) is as follows:
- Mint State (MS) 60–70: Uncirculated (UNC)
- About/Almost Uncirculated (AU) 50, 53, 55, 58
- Extremely Fine (XF or EF) 40, 45
- Very Fine (VF) 20, 25, 30, 35
- Fine (F) 12, 15
- Very Good (VG) 8, 10
- Good (G) 4, 6
- About Good (AG) 3
- Fair (FA, FR) 2
- Poor (PR, PO) 1
While the Sheldon Scale is universally acknowledged, coin experts in Europe and elsewhere often shun the numerical system, preferring to rate specimens on a purely descriptive, or adjectival
Adjective
In grammar, an adjective is a 'describing' word; the main syntactic role of which is to qualify a noun or noun phrase, giving more information about the object signified....
, scale. Nevertheless, most grading systems use similar terminology and values and remain mutually intelligible.
Lustre (mineralogy)
Lustre is a description of the way light interacts with the surface of a crystal, rock, or mineral. The word lustre traces its origins back to the Latin word lux, meaning "light", and generally implies radiance, gloss, or brilliance....
; 5) toning
Lightness (color)
Lightness is a property of a color, or a dimension of a color space, that is defined in a way to reflect the subjective brightness perception of a color for humans along a lightness–darkness axis. A color's lightness also corresponds to its amplitude.Various color models have an explicit term for...
; 6) level of detail retained, where a coin with full details obviously is valued higher than one with worn details. If the coin is judged favorably in all of these criteria, it will generally be awarded a higher grade.
Damage of any sort (e.g., holes, edge dents, repairs, cleaning, re-engraving or gouges) can substantially reduce the value of a coin. Specimens are occasionally cleaned or polished in an attempt to pass them off as higher grades or as uncirculated strikes. Because of the substantially lower prices for cleaned or damaged coins, some enthusiasts specialize in their collection.
Coin grading services
Coin gradingCoin grading
In coin collecting coin grading is the process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector's item....
services are a relatively recent phenomenon, having emerged in the 1980s as a response to the need for buyers and sellers to agree on common measures of a coin's value. Official grading is an effort to bring more confidence to investors in rare coins. Grading services certify the authenticity and rate the quality of individual coins, thus—it is hoped—establishing the worth of the coin relative to all others of its kind. Many coin grading services will also seal coins in a labeled, air-tight plastic holder, ensuring the coin is protected from deterioration. This process is commonly known as coin slabbing and is most prevalent in the US market.
While professional grading has reduced the number of counterfeits
Counterfeit money
Counterfeit money is currency that is produced without the legal sanction of the state or government to resemble some official form of currency closely enough that it may be confused for genuine currency. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is probably...
foisted upon investors and has improved buyer confidence substantially, the goal of creating a sight-unseen market for coins remains somewhat elusive. Professional grading services remain the subject of controversy because grading is ultimately subjective; coins may receive different grades by different services or even upon resubmission to the same service. Due to potentially large differences in value over slight differences in a coin's condition, some commercial coin dealers will repeatedly resubmit a coin to a grading service in the hope of a higher grade. Furthermore, grading services are not free, and by using them collectors funnel money into an ancillary aspect of the hobby, instead of purchasing additional material for their collections.
The two most prominent grading services at present are the Numismatic Guaranty Corporation
Numismatic Guaranty Corporation
The Numismatic Guaranty Corporation is a provider of third-party coin grading services to numismatists. The company was founded in 1987 and is headquartered in Sarasota, Florida...
(NGC) and the Professional Coin Grading Service
Professional Coin Grading Service
PCGS is the acronym for Professional Coin Grading Service a third party grading service for grading rare coins. Founded in 1986, and located in Newport Beach, CA., it is a subsidiary of Collector's Universe, Inc. , a company that also buys and sells rare coins and operates a rare comic book...
(PCGS). The least reputable coin dealers have a growing tendency to sell higher graded coins via sales pitches claiming that grading removes subjectivity as to the value of mint state coins. Dealers that sponsor infomercials on shortwave
Shortwave
Shortwave radio refers to the upper MF and all of the HF portion of the radio spectrum, between 1,800–30,000 kHz. Shortwave radio received its name because the wavelengths in this band are shorter than 200 m which marked the original upper limit of the medium frequency band first used...
radio are notorious for such sales pitches, most notably Discount Gold & Silver Trading on WWCR
WWCR
WWCR is a shortwave radio station located in Nashville, Tennessee in the United States. WWCR uses four 100 kW transmitters which broadcast on 14 different frequencies....
.
See also
- CoinsCOinSContextObjects in Spans, commonly abbreviated COinS, is a method to embed bibliographic metadata in the HTML code of web pages. This allows bibliographic software to publish machine-readable bibliographic items and client reference management software to retrieve bibliographic metadata. The...
- Coin catalogCoin catalogA coin catalog is a listing of coin types. Information may include pictures of the obverse and reverse , date and place of minting, translation of inscriptions, description of images, and prices for various grades...
- ExonumiaExonumiaExonumia are numismatic items other than coins and paper money. This includes "Good For" tokens, badges, counterstamped coins, elongated coins, encased coins, souvenir medallions, tags, wooden nickels and other similar items...
- NumismaticsNumismaticsNumismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
- Challenge coinChallenge coinA challenge coin is a small coin or medallion , bearing an organization’s insignia or emblem and carried by the organization’s members. They are given to prove membership when challenged and to enhance morale. In addition, they are also collected by service members.- Origins of the challenge coin...
- Regular issue coinageRegular issue coinageBusiness strike is a term that distinguishes coins created for commerce from commemorative coins and proof coins. Regular issue coins are normally produced in relatively large numbers, and are primarily meant to be used as pocket change, not collected...
- Coin gradingCoin gradingIn coin collecting coin grading is the process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector's item....
- List of most expensive coins
- SeigniorageSeigniorageSeigniorage can have the following two meanings:* Seigniorage derived from specie—metal coins, is a tax, added to the total price of a coin , that a customer of the mint had to pay to the mint, and that was sent to the sovereign of the political area.* Seigniorage derived from notes is more...
Examples
- Byron Reed CollectionByron Reed CollectionThe Byron Reed Collection features rare books, manuscripts, autographs and coins that are located at the Durham Museum in Omaha, Nebraska. According to experts, "Byron Reed was one of the greatest collectors of the 19th century," with a reputation as a numismatist that is "largely unrecognized."...
- Collection at Ibn Sina Academy