Wednesday, March 04, 2009

Introduction to coin collection

Found this great article. Forgot the link. If anyone finds the original please send me the link so that I will put up the link on the blog.

Coins old and new have a special attraction for many people, professionals as well as amateur hobbyists; Estimates of the number of active collectors worldwide range into the millions. Scholars regard coins as mirrors of history, studying coin portraits of contemporary Monarchs some famous, others scarcely known except for coins and the inscriptions and designs that often refer to important events. even analyzing the purity of the metal from which a coin was made can provide an insight into the economics of its time. amateur Collectors, often called Numismatists, enjoy coins for their beauty, their rarity, and the stories behind them. Added to this is the excitement of searching for and finding specific coins, or the challenge of identifying an unfamiliar item. Numismatists also enjoy arranging and displaying a collection. Most appealing of all, perhaps, is the possibility of finding rare coins for a bargain price and the hope that coins in a collection will in time increase in worth.

The market value of any coin,that is, the price a dealer would charge for it, is determined by supply and demand, the available quantity of a coin and the number of collectors and degree of interest they have in owning it. Once a coin becomes recognized as a rarity, its value frequently increases every time it changes hands. A key element in the value of any coin is its state of preservation. A specimen in perfect condition, just as it left the mint, may be worth many times as much as the same coin in average used condition. Mutilation or damage greatly reduces the value of a coin. Collectors and dealers use a point system as well as a set of terms to describe the condition of coins: Uncirculated or Mint State (ms 70-60), about Uncirculated (au 55-50), Extremely Fine (ef 45-40), Very Fine (vf 30-20), Fine (f 12), Very Good (vg 8), and Good (g 4).

Collectors are likely to start with coins of their own countries because of their availability. With this kind of collection, every date, mint mark, and variation in design is counted as a different coin; The goal is not only to acquire one of every variety issued but also continually to upgrade the condition of the coins already found. The number of coins to be found in circulation is, however, fairly restricted, and a collector must resort to trading or buying to fill in such a series.

Another popular form of collecting is assembling types of older coins. Instead of trying to have a specimen of every date and variety of a series, the collector obtains a single coin to represent each "face different" series. This kind of collection is particularly interesting because every coin is different and has its own history.

If a Numismatist turns to coins of other countries, many thousands of specimens become available. Series collections or type collections of any country that interests the collector can be formed. Specific dates and varieties of foreign coins are much harder to find even in dealers' stocks, so a Numismatist may try putting together a collection of one coin each of many different countries, or only commemorative coins.

Topical or Thematic collecting has also become popular. In this kind of collection the coins are related to one another on the basis of their design and the people or objects shown. Animals, Plants, Ships, Maps, Buildings, and religious motifs are well represented on coins; By watching the new issues of the world for appropriate designs, additions to a collection can be made.

When deciding on the purchase of expensive coins, collectors must do the same kind of research necessary for any other investment. The current market value for the item, how readily and for what kind of price it can be resold, and its potential appreciation must be determined. Above all the collector must be knowledgeable enough to know whether a coin is genuine, or must have confidence that the dealer does.

Coin catalogs give some idea of current prices realized for various coins; Dealer advertisements in the special coin magazines and newspapers are, however, usually more up to date. Coin auctions are an important feature of the major Numismatic conventions. Catalogs of the items to be sold are issued ahead of time, and lists of the prices at which the items were sold can often be obtained afterward. Conventions may have tables where Numismatists can consider the offerings of many dealers. To assess future trends the collectors need to meet with other enthusiasts, perhaps by joining a local club.

The most elegant way to display a coin collection is in a cabinet with pull-out trays. The most convenient way, on the other hand, is to use an album system with plastic pages that hold individual cardboard coin mounts. The best way to deal with large numbers of coins is to use small, standard-size coin envelopes filed in boxes. The same precautions taken for other valuables must be used to safeguard a coin collection.



Coins Ring - Old Post

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