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Coin Collection Facts - Simple Guide To The Hobby

Coin collection is a wondeful hobby. While some coin collectors enjoy hunting for rare coins, others take it as an investment to make money out of it. As a coin collector if you know something about the grading and evaluation of coins, you will have a better idea about what others may be looking for.

Types of coin collectors

Normally coin collectors collect only some specific type of coins so as to add value to their collection and also to make it interesting to the buyers. Some other collectors do it only for personal satisfaction and are more interested in the uniqueness of coins. Series coin collectors are interested in coin series with yearly marks and design changes. They will not like to miss any coin of their series. The type collectors are people interested in the series of coins which have been changing.

There are ancient coin collectors: these are people interested in coins of the period spanning 650 BC to 450 AD. During this period coins were supposed to be invented and used. These coins are made of bronze, silver or gold. The Romans ruled in this period and these coins feature Roman emperors, their towns and gods, etc.

Token collectors collect tokens which were used in place of the actual currency when the coins were in shortage. Though these tokens might not have been authorized by the government, they were in use in place of the local currency.

Grading of Coins

Coins can also be graded for evaluation purposes. The condition of the coin decides its grading and that in turn will govern its price. It will be useful if a coin collector knows grading coins so that he can safeguard himself from cheating.

The term "uncirculated coins" refers to coins which show no wear or tear, they are also refered to as being "in mint condition". The MS (mint state) grading is determined by the coin's shine, visible contact marks or hair lines scratches, and the overall look. The MS grading ranges from MS-60 (implying dull luster) to MS-70 (meaning flawless). While the grade, MS-70, is unachieveable, coins with grades MS-65 or higher will fetch good prices.

The circulated coins are graded less harshly -- amount of scratches or dirt on the coins with years of use are ignored while grading. Instead, the quality of physical appearance such as luster of the coin, visibility of design elements, letters and numerals, etc., determine the grade of the coin. Their worth is indicated by the following grades:

AU (about “uncirculated”), EF (extremely fine), VF (Very Fine), F (fine), VG (Very Good), G (good), AG (about good), F-2 (fair) and as
P (poor).

Since, these coins had been in circulation unlike the uncirculated coins which were never used, the grading of circulated coins do not drastically affect their value. This is a useful situation for those who need them merely to complete their collection.

The basic laws of economics applies to the world of coins too. The price of a particular coin will also be governed by the usual demand-supply situation, disregarding the grade of the coin. The low supply coins with heavy demand will be expensive compared to those in good supply.

It is the coin dealers who establish the demand, and hence the coins' worth, by comparing the number of buyers and sellers. As a coin becomes hard to find, the coin dealers raises its price, and more people come forward to sell it.

You must know that grading and pricing of coins usually require a good deal of experience. While there are plenty of tips and guide books about grading and coin evaluations, it is the professional coin dealers who have the final word on the coins' worth. It may be a good exercise that you grade and evaluate your coins yourself and then talk to some professional dealers to find out why your results are different from theirs.

While the investment and profit part will be always there in coin collections, it can certainly be made to be a joyful hobby. Besides knowing a thing or two about grading will be always useful so that no one can exploit your ignorance.

About the Author

Abhishek is an avid Coin Collecting enthusiast and he has got some great Coin Collecting Secrets up his sleeve! Download his FREE 58 Pages Ebook, "Understanding And Mastering The Art Of Coin Collecting!" from his website http://www.Fun-Galore.com/92/index.htm . Only limited Free Copies available.

Questions & Answers about Coin Rare Grade

Do American coins always flip up and down to view the obverse and reverse in the correct direction?

I just bought a rare 1877 indian head penny that when you flip it it's off center slightly. Should that be a reason for concern? Maybe such a thing is common during these early years of national coin mintage. It's professionally graded "Proof" PF 63 then RB. On the reverse it says authenticated ANACS along with a barcode and serial number

U.S coins are in what is called coin rotation. That is you flip bottom to top to see the other side face up. Canadian coins are medal rotation you turn the left to right and the reverse is fase up. It is also not uncommon for Indian cents or any other coin from the 1870's to have a slightly rotated reverse. The dies were held in by set screws that got lose from time to time. I am some what surprised you would pay $3,500 to $4,000 give or take depending on Eye Appeal, for a coin you know nothing about. You do own one of the 900 proof 1877 cents minted that year.

is the 1999 s silver kennedy half dollar graded by pcgs pr70 deep cameo rare?

I bought this coin on ebay for about $500.....how much is this coin worth? And did I make a good deal?

With a population of 73, it's not especially rare, in that there are quite a few more examples available than there are PCGS Registry sets of this series. It doesn't mean that there aren't collectors who don't have a Registry set that would not want one. But,sales activity shows values well below the PCGS Price Guide value of $1800.

At one non-eBay auction site I track, four examples sold within the last two years. The two oldest sold for $475 plus buyer's premium and the two most recent, the most recent from 6 months ago, went for $450 plus buyer's premium. What you paid, with no buyer's premium, is a little bit below that.

However, at another non-eBay auction site I track, the information there is even more revealing. In May 2006, one sold for $805 with buyer's premium. The population at the time was 9. In January 2009, the price was $517.50 including BP (just about what the buyer paid in those two other auctions that went for $450 + BP). The population at that time was 25. Sixteen more had graded perfect in that almost three year period. Then, in January of this year, another sold for $575 incl. BP. The population at that time was 56. It had more than doubled in a year, but the price rose a little bit.

Then we have yours, for $500, only at the present time, the pop is 73. This means that another 16 have graded perfect in only three months.

It is almost certain that the population is going to continue to go up as more and more people break proof sets and submit individual coins. It's a lot harder to say what that increasing population will do to values, but history suggests that it will have downward pressure. In my opinion, you didn't overpay, for present market conditions, but you didn't get a great bargain, either.

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Alan Mendelson & Pro Coin - 2

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