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Coin Collecting - NumismaticsCoin collecting is probably one of the worlds most popular
hobbies. Many metal detectorists are also coin collectors, or at
very least, love to find old coins.
I have been collecting ancient coins for many years and one
of my most treasured possessions is the first roman coin I ever
found whilst metal detecting. I didn't find it with my metal
detector (at that time a C-Scope 1220B), I spotted the coin
before I ran the the search head over it, just laying on the
surface.
I have never understood the obsession many detectorists have
with finding hammered silver coins, give me Roman or Celtic
grots any day of the week! I still love to find the hammered,
but they really aren't the be all and end all of metal detecting.
Coin collecting
While hoarding coins due to their value goes back to the
beginning of coinage, coin collecting as pieces of art
was a later development. Known as the 'Hobby of Kings', modern
coin collecting is generally believed to have begun in the
fourteenth century with Petrarch. Notes of Roman emperors having
coin collections are also known, but it remains somewhat unclear
whether these coins were studied, considered curiosities or
possibly were merely hoarded. Coin
collecting specialties
Coin collectors often begin by saving coins they have
received in circulation, but found interesting. These may be the
remnants of change from an international trip, or an old coin
found in circulation. Over time, if their interests increase,
chance will not be sufficient to satisfy the demands for new
specimens, and a potentially expensive hobby is born. Some
become dedicated generalists, looking for a few examples of
everything. If they have enough resources, this can result in an
astounding collection, as that of King Farouk of Egypt, who
collected everything (and not just coins either). Some are
completists, wanting an example of everything within a certain
set. For example, Louis Eliasberg was the only collector thus
far to assemble a complete set of known coins of the United
States.
At the very highest levels of coin collecting, it can become
a highly competitive sport. Recently, this has exhibited itself
in registry sets, where the most complete set of coins with the
highest numerical grades assigned by grading services are
published by the grading service. This can lead to astronomical
prices as dedicated collectors strive for the very best examples
of each date and mint mark combination.
Most collectors determine that they must focus their limited
financial resources on a narrower interest. Some focus on coins
of a certain nation or historic period, some collect coins from
various nations, some settle on error coins or exonumia, such as
currency, tokens or military challenge coins.
Every collector collects what interests them, and there are
as many ways of collecting as there are collectors. However a
few themes are common and are often combined to a goal for a
collection.
A number of common collection themes include:
Country Collections
Many collectors attempt to obtain an example from every
country which has issued a coin. In contrast to those who
collect coins from all countries, many collect coins from only
one country, often their own.
Year Collections
Rather than collecting one example of a type, some collectors
prefer to collect by year, and thus collect one Lincoln cent for
every year from 1909 to the present. This is possibly one of the
most possible ways to collect US currency. Most bookstores sell
specially designed books just for the purpose of collecting
coins by year.
Mintmark Collections
Many collectors consider that different mint marks give
sufficient differentiation to justify separate representation in
their collection. This increases the number of examples needed
to complete a collection from one per year to several per year.
Some mintmarks are more rare than others and harder to find.
This is what makes collecting different mintmarks exciting for
collectors.
Variety Collections
As the mint issues many thousands or millions of any given
coin, there are generally multiple sets of dies used.
Occasionally these dies will be slightly different, generally in
a very small detail, such as the number of leaves on the ear of
corn on the recent US Wisconsin state quarter. Varieties are
more common on older coins, when the dies were hand carved.
Error Collections
The automation of coin manufacturing processes during the
19th century has decreased the number of error coins produced,
and somewhat perversely, increased their collectability.
Collectors of modern coins find errors desirable because modern
processes make the likelihood of their production very limited.
Examples of coin errors include doubled dies, re-punched mint
marks, overdates, double strikes, off metal coins, displaced or
off centre coins, clipped coins, and mules (different
denominations on two sides of one coin). -Recently the Wisconsin
quarter was found to have an error. It was noticed that some of
the quarters contained varying amounts of leaves on the tails
side. A fun and collectible example of a recent error
collection.
Subject Collections
Collectors with an interest in a subject (i.e. ships or dogs)
may collect only coins depicting such certain interest.
Composition Collections
For some, the composition of the coin itself is interesting,
for example there are a number of collectors of only bimetallic
coins. for example gold, silver, copper... normally only
precious metals like gold, silver and now platinum fit this
category.
Period Collections
Many collectors restrict themselves to coins issued after the
18th or 19th century, while others collect ancient and medieval
coins. Coins of Roman, Byzantine, Greek, Indian, Celtic,
Parthian, Merovingian, Ostrogothic, Snappic, and ancient
Israelite origin are amongst the more popular ancient coins
collected. Specialties tend to vary greatly, but some approaches
include the collection of coins minted during a particular
emperor's reign, or a representative coin from each emperor.
Coins are often a reflection of the events of the time in
which they are produced, so coins issued during historically
important periods are especially interesting to collectors.
While many of these themes appear simple at first glance, the
more serious the collector becomes, more problems surface. Where
someone collects coins from every country, eventually the issue
of what is a country will arise, especially in areas beset by
civil war. When a collectors aim is every year and mintmark of a
particular type, then there will often be one coin which is
significantly more rare and expensive than the others
Coin collecting details
In coin collecting the condition of a coin is paramount to
its value; a high-quality example is often worth many times as
much as a poor example—although there are always exceptions to
this general rule. Collectors have created systems to describe
the overall condition of coins. One older system describes a
coin as falling within a range from 'poor' to 'uncirculated'.
The newer Sheldon system, used primarily in the US, has been
adopted by the American Numismatic Association. It uses a 1–70
numbering scale, where 70 represents a perfect specimen and 1
represents a coin barely identifiable as to its type.
Several coin grading services will grade and encapsulate
coins in a labelled, air-tight plastic holder. This process is
commonly known as 'slabbing', and is most prevalent in the US
market. Two highly respected grading services are the Numismatic
Guaranty Corporation (NGC) and Professional Coin Grading Service
(PCGS). However, professional grading services are the subject
of controversy because grading is subjective—a coin may receive
a different grade by a different service, 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 hopes of a higher grade.
Buyers are encouraged to look into the quality and features of
the various grading services before deciding to purchase a coin
based solely on the grade given by a service. The grading
services came into being (PCGS being first) in an effort to
bring more safety to investors in rare coins. While they have
reduced the number of counterfeits foisted upon unsuspecting
investors, and have improved matters substantially, because of
the differences in market grading (which determines the price)
and technical grading, the goal of creating a sight-unseen
market for coins remains somewhat elusive.
Damage of any sort, such as holes, edge dents, repairs,
cleaning, re-engraving or gouges, can substantially reduce the
value of a coin. Specimens are occasionally 'whizzed'--cleaned
or polished in an attempt to pass them off as being higher
grades or as proof strikes. In general, the buyer is cautioned
to be careful of any unknown seller's claims. Because of the
substantially lower prices for cleaned or damaged coins, some
specialize in their collection. There is a market for almost any
rare or obsolete coin.
Many people search loose change and bank wrapped rolls of
coins for collectible coins. Amazingly, old coins continue to
circulate. Some over 100 years old! Search for terms like 'coin
roll hunting' to see web sites that are dedicated to this hobby.
Coins as an investment
A common reason given for purchasing coins is as an
investment. Coin prices can be cyclical, and prices may drop for
coins that are not in great long-term demand. In addition to
demand, condition and rarity (which can be estimated via mintage
figures) are also determinants in pricing. Age of a coin per se
is not a significant factor.
Many of the reasons given for investing in coins are similar
to those given for investing in stamps or gold. As with most
collectibles, a coin collection does not produce income until it
is sold, and may even incur costs (e.g. for safe deposit box
storage) in the interim.
While collecting for pleasure makes an enjoyable hobby,
people entering the field primarily to make a profit are warned
to study before buying. Certain companies, some of whom may
advertise on television, in newspapers, or in popular magazines,
are alleged to make outlandish claims about the present and
future values of their wares. After learning the basics of the
field it is often possible to make better purchases from
reputable dealers.
Coin collecting trivia
The first international convention for coin collectors was
held in August 15–18, 1962, in Detroit, Michigan, sponsored by
the American Numismatic Association and the Canadian Numismatic
Association. Attendance was estimated at 40,000.
The scientific study of coins is known as 'numismatics'. A
numismatist may or may not be a coin collector. A coin collector
may or may not be a numismatist.
From
http://en.wikipedia.org/wiki/Coin_collecting |
