How to start a coin collection
This year, the Federal Reserve will officially begin “phasing out” the penny. The brave little copper-colored coin once brought you a piece of candy from the corner store. Then he was found mostly tucked into moccasins and floating at the bottom of wishing wells and fountains. As much as we hate to see them disappear, you have to admit that you haven’t actually used a penny in years…unless you found one on the street (face up, of course) and picked it up hoping for a boost.
But the idea that a part could do its duty and then be retired might spark something else in you – perhaps a desire to find more obsolete and abandoned parts. Perhaps this leads you to delve into the history of coin production, as well as the secrets and hidden details that set them apart from each other. Before you know it, you may want to become a coin collector in your own right. A numismatistif you want to use the correct term.
But then what?
To give you some advice on how to get started, we reached out to former journalist and Professional Numismatists Guild spokesperson Donn Pearlman. Pearlman’s own journey began when he was 8 years old and “received a shiny red Lincoln cent in mint condition.” He returned to the hobby later in life, and this “resurgent numismatist” found numismatics to be a fascinating and rewarding hobby.
“Even though I’ve never owned a multimillion-dollar trophy piece,” Pearlman says. “I have been fortunate and excited in my professional life to see and hold many of the world’s most famous rare coins.”
Here’s Pearlman’s advice on how budding numismatists can get started…
Start simple
According to Pearlman, most people begin their collecting journey with everyday coins found in circulation. But knowing what to look for is what separates a coin collection from just a coin collection. And for that you have to read.
“There’s an old saying in numismatics: ‘Buy the book before the coin.’ If you are interested in United States coins, purchase the latest edition of A Guide to United States Coinscommonly known in the hobby simply as the “Red Book” due to its red cover. There are similar reference books and online resources for information about U.S. coins and those of other countries.
Pearlman advises starting with something that has personal resonance. “Do you like the historical event or the person depicted on the coin or banknote? » he said. “Perhaps you want to collect what’s called a ‘character set,’ a representative example of every denomination and design minted during a certain time period, such as the 20th or 19th century? Bottom line: Collect what you like, whether it’s a wheatstalk-patterned Lincoln cent from 1909 to 1958 or ancient Roman coins depicting the 12 Caesars.”
And the best part is, you don’t need to spend a lot to get started. “You can happily start a collection for less than a dollar by starting with the many designs, dates and mintmarks of coins that are easily found in circulation.” Pearlman suggests attending coin shows and asking questions to learn the lingo and understand the small details that differentiate one coin from another.
Old doesn’t always equal value
According to Pearlman, one of the most common misconceptions among beginning collectors is the erroneous assumption that just because a piece is old, it must be rare and valuable. “There are many ancient Roman bronze coins priced at $50 or less. But a 1913 American Liberty Head nickel is worth millions because only five are known.”
It’s a simple case of supply and demand. “Value is also determined by the condition of a coin, its state of preservation. A worn Indian Head cent from the early 1900s might be worth a dollar or two, but in pristine, mint condition it could be valued at thousands of dollars.”
Don’t clean them!
The flip side (pardon the pun) of thinking that old, decrepit coins are automatically valuable is assuming that shiny, shiny coins are more coveted. This could lead to very costly mistakes.
“I often tell the story of a heartbreaking encounter I witnessed at a coin store when a widow brought in her late husband’s collection to sell,” Pearlman says. “She had scrubbed each coin with a kitchen scouring pad, mistakenly believing that making them ‘shiny and shiny’ would increase their value. The dealer had to gently tell her that harsh, abrasive cleaning only damaged the coins. One of the silver dollars she wanted to sell would have been valued at $1,000, but the now damaged coin was only worth about $100.”
Handle (and store) with care
As you start building your collection, it’s also important to think about how to store and handle the pieces. Pearlman has seen people store them in home safes or even bank safes. Coins that have been graded by an accredited institution like the Professional Coin Grading Service will place the coins (or notes) in tamper-proof holders that protect against environmental damage.
Pearlman warns against using PVC (polyvinyl chloride) storage containers, as they can cause long-term damage to your parts. And if you must handle them, hold the pieces only by their edges to avoid leaving fingerprints on the front or back.
Don’t let yourself be scammed!
“There’s another old saying: ‘If you don’t know coins, you better know your coin dealer,'” says Pearlman. Technology has made finding coins easier in some ways, but it has also provided new tools for those looking to scam novices.
“This has created a Wild West of completely inaccurate information and false advertising from a small army of scammers selling counterfeits, altered coins and/or grossly overvalued items. Again, know your dealer!”
Pearlman recommends working only with people who are members of recognized professional organizations such as the nonprofit PNG Association – which follows a strict code of ethics – or the American Numismatic Association. Also check to see if the dealership has a good rating from the local Better Business Bureau.
“To quote yet another amateur proverb: ‘There is no Santa Claus in numismatics.’ »
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