A Beginners Guide to Coin Collecting

Coin collecting is an incredibly rewarding hobby that can take a lifetime to master. Though it may seem daunting at first, starting a coin collection does not require in-depth knowledge or specialized tools — anyone can get started with some simple tips.

In this beginner’s guide to coin collecting, we’ll provide all the information you need on how to start a coin collection.

Becoming a Coin Collector: What You Need To Know

Whether you are just starting out or have been collecting for some time, there are a few critical things you need to know about coin collecting.

Let’s explore these:

Face Value of Old Coins vs. Market Value

When discussing the value of coins, you have to consider both the face value and the market value. The nominal value (face value) is the amount that appears on a coin, such as “1 cent,” “5 cents,” “10 cents,” etc.

In other words, it refers to its official government-issued denomination. The market value is the amount of money a coin can be bought or sold for in the marketplace. It may not correspond to the face value and can fluctuate depending on its condition, rarity, and other factors.

For example, an old dime with a face value of 10 cents may have a market value of $2-3 if it is an uncirculated coin. On the other hand, a worn dime of the same age and denomination may only have a market value of $1.75-2.

Keep in mind that while there are many factors that affect a coin’s market value, its face value remains constant. Thus, it is essential to always be aware of both values when determining the worth of a piece.

Take into consideration the condition, rarity, and age of coins when evaluating their market value. You should also ensure that you understand how collectors and dealers price valuable coins to get the most out of your collection.

Understanding the Coin Grading Scale

Next up, we focus on the coin grading scale. When it comes to the condition of a coin, many enthusiasts use the Sheldon Coin Grading Scale to determine its value and quality.

This scale rates coins on a 70-point system that ranges from Poor (P-1) to Perfect Uncirculated (MS/PR70). As an example, a grade of VG10 is considered to be an average circulated grade and is found on many circulated coins.

When grading a coin, the following components are taken into consideration: luster, coloration, strike, surface quality, and environmental damage.

The Sheldon Coin Grading Scale assigns points to each of these areas in order to arrive at a final grade. Keep in mind, though, that grading is subjective, and coins can be under or over-graded. This is why we suggest you look at purchasing NGC and PCGS-certified coins.

For those learning how to start a coin collection, understanding the coin grading scale is essential for being able to accurately assess the condition of a particular piece.

Also, consider joining a numismatic organization in order to gain access to more resources and advice from experienced collectors. The American Numismatic Association (ANA) is one of the largest associations for coin-collecting enthusiasts.

As a member, you can take advantage of educational programs and networking opportunities to further develop your knowledge about coins.

By familiarizing yourself with the Sheldon Coin Grading Scale and numismatist methods, you will be able to make more informed decisions, which is essential for old and new collectors alike.

What Are Mint Marks on United States Coins?

As you begin to explore the world of coin collecting, you may have come across a term called “mint marks.” Mint marks are small lettering stamped on the coins to indicate where it was minted.

Many United States coins feature a “P,” which stands for the Philadelphia Mint, or an “S,” which is short for San Francisco Mint. Other coins may feature a “D” for Denver, a “C” for Charlotte, or an “O” for New Orleans.

Mint marks are most can either be found on the obverse (face or “heads”) or reverse (tails) sides of the coin. They can range from very small to large, depending on the denomination.

For example, a dime may have a very small mint mark that is difficult to see, while quarters and half dollars often feature larger lettering, which can be easier to spot.

Coin collectors pay special attention to coins with rare mint marks, as they are often worth more than their circulated counterparts. For example, the 1916-D dime is a very rare coin that features the Denver mint mark. It is highly sought after by collectors and can be worth upwards of $9,000 if it’s in excellent condition.

Mint marks are an important tool for coin collectors to help identify where a particular coin was made and the potential of the coin’s value. So as you continue your journey into coin collecting, take a closer look at the mint marks on U.S. coins and how they can affect the value of your collection.

Finding Reliable Coin Dealers

When looking to purchase coins, it is important to find a reliable and trustworthy coin dealer. A reputable coin dealer will have an established track record of offering fair market prices for coins and being upfront about the condition of each piece.

It is also helpful to find a dealer with access to a wide variety of coin collections, as this can make it easier to find rare coins or specialty pieces.

Do your research and read reviews from other coin collectors before making any purchases from a dealer.

It’s also recommended to visit coin shows, coin auctions, or conventions to view coins in person before you buy them. This is a great way to see coins up close and speak with the coin dealer or vendor directly.

Finally, check that any expensive coins you purchase are properly graded, authenticated, and in condition as described by the dealer before completing a transaction. Doing so will help to ensure that your purchases remain secure.

Types of Rare Coins To Know About

As a collector, it’s vital to understand the different types of coins available on the market. Generally, coins can be divided into two categories: common and rare.

Common coins are generally those that were mass-produced in large numbers by a government, while rare coins are those that have limited production or special characteristics — such as unique designs, minting errors, or special commemorative issues.

Here’s a look at a few of the popular types of coins and their associated characteristics:

Ancient Coins

Ancient coins are those that were created before the Middle Ages. These include Greek and Roman coins, which often bear images of gods and rulers from antiquity. Many ancient coins are highly coveted by collectors due to their age and historical significance.

Commemorative Coins

Commemorative coins are specially minted in honor of an event or person, such as a coronation or anniversary. These coins usually have unique designs and are highly sought after.

Coins Made From Precious Metals (Gold Coins, Silver Coins)

Coins made from precious metals, like gold and silver, are often very valuable. These coins can be antique or modern, but the common factor is that they contain a substantial amount of the precious metal in question.

Complete Coin Sets

Complete coin sets are collections of coins from the same era or mint, such as a set of all the coins issued in a country during a particular year. These sets often contain rare coins and can fetch a high price on the collector’s market.

Uncirculated Coins

Uncirculated coins are those that have never been put in circulation. This means they still show the same features that they did when first minted, such as full luster or lack of wear and tear from handling.

Starting Your Coin Collecting Journey Just Got Easier

Thanks to Bullion Shark and our comprehensive beginner’s guide, knowing how to start a coin collection is much more straightforward.

In addition to our guide, we offer a vast selection of coins, including collector sets that will help you begin collecting in no time. Whether you’re a seasoned collector or are starting out, we have the coin-collecting resources you need to get started.

Sources:

American Numismatic Association

Coin Grading Made Simple | The Spruce Crafts

How Much is a 1916 Dime Worth? (Price Chart) | SomethingBorrowed