Collecting Coins

Guidelines for beginners

There are many reasons behind why people collect coins, and each coin you hold in your hand tells a story and the finding out of the story behind the coin is just as much fun as is finding a coin. You do not have to have a lot of money in order to be able to collect coins   because you collect coins in accordance with your very own budget.

What coins should I collect?

You can collect any coins you like.  If you are undecided here are a couple of ideas:

By country.  Often, the easiest way to start your collection by getting coins from your own country but, you can also try getting coins from as many as possible countries in the world.

By date or time period. Try to get one coin of each denomination from 1990 to 2000.  If you prefer older coins you will have to visit a coin dealer, or else speak to an older person who would probably be glad to give you some older coins.

By colour. Some collectors collect only silver or gold coloured coins.  Beginners should rather go for aluminium, bronze, brass, or nickel coins as they are much cheaper than gold and silver coins.

By theme. If you love birds it is a good idea to collect as many coins possible where birds form part of the design.  Some people collect only flower coins or any other topic that interests them.  (Do not choose a difficult theme - you will not find "Spiderman" coins!)

By shape and serration. Once you start looking at coins you will notice that they appear in different shapes and also have different types of serrations (notches and grooves around the outside of the rim).

What coins do people collect?

What to collect is entirely up to the collector. It will normally be a specialisation that holds certain interests for the collector, and is also well within his/her planned budget.

Among the most popular types of collections are world coins, ie; from several countries, ancient coins, and coins of a specific country. Some specialisation within these categories is ordinarily helpful. If collecting from a particular country, you can work on one or more series, a type set, commemoratives, errors, die varieties, paper money, etc. You may also want to set bounds on the grades of coins you collect, e.g. all G-VG, VF or better, or "Uncirculated" and, if you can afford it, "Mint".

Series - The goal of a series collector is to acquire one of each date and mintmark made, usually including any major design differences. For example, the U.S. Standing Liberty quarter was produced from 1916 to 1930 at the Philadelphia, Denver and San Francisco mints (coins were not made at all three mints every year, and none were produced at any mint in 1922); a major change to the obverse was made in 1917, and the full set is generally considered to include both designs for that year from each mint.

Type - A collector building a type set seeks to have one of each series and major design variation within each series. Examples would be 20th century Canadian coinage or U.S. gold coins.

Ancients - From the invention of coinage in Ionia about 650 BC to the last Roman emperor of 450 AD, the gold, silver and bronze coins of the ancient world are surprisingly available. A common silver drachma issued by Alexander the Great might cost some R450, 00. A common silver denarius from one of the early Roman emperors might cost about R225, 00. Gold costs more, but bronze -- being more common -- costs less. For about R75, 00 to R150, 00 you can own a bronze coin that circulated during the time of Archimedes or St. Paul. Most collectors of ancient coins work on themes: the Twelve Caesars, the town of Carthage, the goddess Diana, etc.

Tokens, Tickets, Tallies and Cheques - When the governments ignored the needs of the people and refused to issue sufficient low value coins, the traders took matters into their own hands and issued tokens. In Great Britain this took place in the mid 1600's, the 1790's and the 1810's. These formed a local currency and it took several acts of Parliament to ban them. The bans were never completely successful and "advertising tickets" continued to be issued through the mid 1800's. These were conveniently the same size as farthings that were still in very short supply, and undoubtedly circulated as such. By the end of Queen Victoria's reign the need for tokens had gone but there were all sorts of other similar pieces being used. Pubs issued checks but because they were such an everyday occurrence, nobody thought to record how they were used! The co-operative societies used cheques to record the value of purchases made so that the correct dividends could be paid. Fruit pickers received tallies, depending on the quantity of fruit picked. The most recent use of tokens is probably the ones used in gaming and vending machines, as well as the one used by the many transport undertakings.

Although less valuable than coins, tokens are nevertheless much more interesting if you are interested in local history and like to do research

What's the best way to get started?

Coins can be rewarding for the collector who makes the effort to study the hobby and the market. Someone who does not make that effort is more likely to waste money on over- graded, problem or counterfeit coins. Before spending a lot of money on coins, invest in your knowledge of the hobby. This web site is a start, but for your own protection you should have at least one reference book covering your area(s) of interest. Reading a few issues of appropriate periodicals is another good idea.

Collecting coins from circulation is a great place to start. The risk is negligible (you can always spend the coins), and you can learn a lot examining your coins carefully and seeing what your reference book says about them.

Join a club! Local coin clubs are usually great for learning more about the hobby, getting material for your collection, and you just might make some good friends, too.

Where to find collectable coins?

When the coins you're interested in collecting are not available in circulation, it's time to look for other sources (see previous topic). This almost always means the purchasing of coins, and some places to buy coins are:

Coin shops - Dealers with their own stores can be good sources of both information and coins.

Coin shows - Here you can shop from several dealers at once. The selection will obviously be better than at most shops, and you just may be able to get better prices because of the presence of competition.

Mail Order - Coins can be purchased from many dealers through the mail. Check any of the relevant periodicals for advertisements. Unfortunately, it is all too common to receive overgraded and/or problem coins from some mail order sources. Make sure the source has a reasonable return policy before ordering, examine the coins carefully on receipt to ensure they're satisfactory (get an opinion from a more experienced collector/dealer if you are unsure), and return the coins if they are not to your satisfaction.

On the Web - Hundreds of dealers offer coins on the Internet and online services, including many of the conventional mail order advertisers. Again, make sure the source has a reasonable return policy before ordering, examine the coins carefully on receipt to ensure they're satisfactory (get an opinion from a more experienced collector/dealer if you are unsure), and return them if they are not. Also, watch out for the occasional scam artist who may pocket your money and not send anything in return.

Auctions - The rarest and most expensive coins are often available only at auctions promoted by major specialty auction firms.

Numerous auctions are conducted online. In some of them anybody can offer coins to the highest bidder. Before bidding, check feedback on the seller, provided the auction service makes it available. Make sure the seller has a reasonable return policy, examine coins carefully on receipt to ensure they're satisfactory (get an opinion from a more experienced collector/dealer if you are unsure), and return them if they are not. It is not uncommon for bids in these auctions to go considerably higher than prices of comparable coins from other sources. Check prices in shops, mail order advertisements and/or web sites and avoid paying too much by limiting your bids to those prices.

Relatively common collector coins are sometimes included in auctions of antiques, other collectable items, etc. The collector is forewarned that material in these auctions is more likely than usual to be overgraded, have problems not mentioned, and maybe not even known, by the auctioneer, or even to try and fetch inflated prices. Better material at lower prices can often be readily obtained from other sources.

Other collectors - It's not always easy to locate other collectors selling what you want, but when you do, you may get a better price. Post what you're looking for in rec.collecting.coins or attend some local coin club meetings.

Flea markets, bazaars, etc. - Coins are sometimes available at flea markets, antique shows, craft fairs and other events where they are not the primary focal point. Because there is little if any competition for the seller and many potential buyers are not well informed about the hobby, these venues can be used to move problem coins and prices may be inflated. While the collector always needs to be able to evaluate the quality of potential purchases and fairness of their prices, extra caution is warranted in these situations.

What's the best way to clean my coins?

In most cases, the best answer is do not clean coins. While you might think they'll look nicer if shiny, collectors prefer coins with an original appearance. Cleaning a coin may reduce its collector value by half or more.

Cleaning coins is similar to restoring works of art - they're both jobs best left to professionals who have the knowledge and experience to know when it's advisable, what techniques will work best and how to use them properly.

Never abrasively clean coins. Even wiping with a soft cloth will cause small but undesirable scratches, which will reduce the coin's value. If the surface of a coin appears to be tarnished, it is best left alone as the colour change is the result of a natural process, which collectors call toning, and this natural toning sometimes increases the value of a coin - especially when it is considered attractive. Molecules on the surface of the coin react chemically, often with sulphur compounds and this reaction cannot be reversed. Although there are "Dips" that strip molecules from the coin surfaces, dipping is a classic example of a technique that, if it is used at all, should be used only by professionals. Dirt and other foreign substances sticking to coin surfaces can sometimes be safely removed by carefully using commercial coin cleaners to loosen the foreign substances, or, try letting the coins lie in either olive oil or soapy water for a few days, followed by a thorough rinse with tap water. Dry the coins with compressed air or allow them to air dry but do not in any way rub the coins.
 

How should I store my coins?

Environment - A relatively constant, moderate temperature and low humidity are preferable for long-term storage of coin collections. Placing packets of silica gel in the coin storage areas also helps to control atmospheric moisture.

Containers - Several types of "containers" for coins are available. Most anything will do for coins with little numismatic value, while nearly airtight holders made of inert materials are a good idea for valuable coins.  

Bags, jars and boxes are adequate for pocket change and circulated bullion coins.

Paper envelopes of various sizes are sometimes used for one or more coins. Be sure to use envelopes made specifically for holding coins or, in time, your coins may change colour (natural toning) because of a reaction with sulphur or other chemicals present in the paper. Various brands of folders and albums are sold for series and type sets and when properly used, they offer some protection from wear and handling but, if thus stored for several years, coins may develop natural toning - as described above - these items are therefore not a good choice for long-term storage of higher-grade coins.

Plastic flips are available in various materials. "Soft" flips are made from polyvinyl chloride (PVC) which decomposes over time with disastrous results for coins and are therefore not suitable for long-term storage. Mylar and acetate flips do not contain PVC, but they are hard and brittle and may scratch the coins if these are not very carefully inserted and removed. While not airtight, they are reasonable choices for moderate value coins that will be "left alone" for a number of years, but less so for coins that are to be shipped or that will be removed and reinserted.

Mylar-lined cardboard, often called "2x2s" but also available in other sizes, are similar to plastic flips. A coin is placed between the two halves, which are then stapled together (some brands contain an adhesive).

Tubes are plastic containers designed to hold a number of the same size coins and they are fine for bulk storage of circulated coins and can also be used for higher-grade coins, provided the coins do not move. A distinct disadvantage is that the coins cannot be viewed without being removed from the tube.

Hard plastic holders are preferable for more valuable coins. They are not known to contain any materials that harm coins and also offer good protection against scratches and other physical damage. They are available for both individual coins and small sets.

Slabs are sonically sealed hard plastic holders for individual coins. They offer good (though still not perfect) protection. Because of the expense of having a coin slabbed, they are generally suitable only for more valuable coins.