A successful scrap trader knows his coins. For thousands of years coins have been made of scrap metal. The inherit value of the metal gives value to the coins, but when dealing with coins there is another aspect you must know. Besides the assigned value to the coin, there is another group of people that pay exorbitant premiums for some coins. They do this because of the widespread hobby of coin collecting.
Some people have an attached feeling towards coin collecting that it is a potentially expensive hobby. Coin collecting is the collecting of coins or other forms of legally minted currency and quite often it involves trading of coins too. Modern coin collecting is believed to have begun in the fourteenth century and the first collectors were Kings, Princes and the nobility. That is why coin collecting is referred to as the ‘Hobby of Kings”- rather intimidating for commoners like us. Anyone can collect coins and you don’t have to be rich.
Our aim is not to study about coin collecting or the so called Numismatics. This is to steer you into some areas in which you have to be knowledgeable about coins. It is very important that you know your coins well. These may be the remnants of change from your favourite corner shop or even an old one you found at garage sales. Not all coins are valuable and worth millions of bucks. However, there are a few of them worth some millions. The best example is the ‘1943 Copper Penny’ (US) with an estimated value of $200,000+. In our day to day life we toss away a lot of old coins without knowing that we are losing jackpots.
There are several factors that make coins worth collecting and valuable. Frequently collected coins include those that were in circulation for only a brief time, those minted with errors, or especially beautiful or those with some historic significance. Rarity is the main thing that adds value to many of those coins. The 1943 Copper Penny also owes its value to rarity. As copper and nickel were reserved for war, most circulating pennies at the time were minted zinc-coated steel. The ‘1955 Double Die Penny’ (US) gained its value from an error during minting. A misalignment caused double dies on about 24,000 of them. A 1955 Double Die Penny has an estimated value of $1000+.
The second thing that determines the value of a coin is the ‘grade’ or the condition. The coin grading system numerically quantifies the condition of a coin. Most of the coin grading services will grade and encapsulate coins in a labeled, air-tight plastic holder. This process is commonly known as ‘Coin Slabbing’ and is most prevalent in the US market. There are several coin grading services and the most prominent among them are the Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS). Visiting their websites will give you a basic idea about all aspects of coin collecting, grading and pricing. Consumer Demand is another factor that determines the value of a coin. At times even the rarest of the coins won’t have any consumer demand.
Spotting the correct coin from the fake ones is very important and not an easy task. You will need to know the characteristics or special features to tell the genuine ones from the fakes. Several ‘Coin Pricing Guides’ are available listing all those coins with their characteristics and prices. The ‘Guide Book of United States Coins’ (2008) has all the coins ever made in the United States listed in it. Also, the websites of the coin grading services often include details of the coins along with the price. It is recommended to keep a Coin Pricing Guide, if you are serious about your coins. To keep track of your coin collection, having a coin check list is always recommended. Printable checklists and checklist software are available free for download.
Some call it a hobby. Some call it an investment. In any case coin collecting is exploding into big profits without much investment. Only thing is that you need to know your coins well. It will be interesting to take a look at Ebay. Look up commemorative U.S. coin, and watch the incredible tally of listings that appear. Then grab your coin pricing guide and compare today’s winning auction dollars to any of those coins’ original issue price. You will be surprised to see the huge difference. The 1976-S Clad Bi-Centennial Quarter is posted at $14,999.95. You are likely to find commemorative coins too often. Congress authorizes commemorative coins that celebrate and honor American people, places, events, and institutions. Although these coins are legal tender, they are not minted for general circulation. Each commemorative coin is produced by the United States Mint in limited quantity and is only available for a limited time. Because of this reason, those coins become the attraction of coin collectors after a few years. Bookmark the U.S. mint’s web site and get on their email list. You get info on up and coming coin issues and circulation numbers. If you open an account you get a lot of privileges.
It is interesting that more and more people are starting to view coin collecting as investment and it becomes more and more interesting for investors as constant growth in coin values bring better returns than risky stock market. If you would like to invest in US coins, you can purchase them directly from US Mint. The cheapest way to acquire some nice coins is to start with searching and examining your pocket change. Also, go to different banks and buy rolls and search through them carefully. You might be able to purchase a few of them at local flea markets, too.
Again, the most important thing about coin collecting is that you need to become acquainted with coins before you actually collect them. You better know what you are getting into before you fully commit. Experts recommend having a coin pricing guide and checklist handy. Know your coins and think twice before you toss away any of them. The coin you found hidden away in the attic could mean you won’t ever have to work again. Start checking your pocket change today; you just never know what rare finds you may come across!
