Hobbies And Interests
History
Coin collecting goes back many centuries. Ancient and medieval rulers closely studied earlier coins and created their own copies. Coins were appreciated as works of fine art, as princes and kings amassed large collections. During the Renaissance, coin collecting, or numismatics, came into its own. As demand for rare issues increased, a vibrant market developed that drove up coin prices. Collectors' agents scoured existing collections for desirable pieces. The nineteenth century saw the formation of large and active numismatic societies. Today, professional coin collectors compete in a global marketplace, exhibiting and trading their prized possessions at coin shows and conventions.
Significance
Coin prices reflect the confluence of two worlds, that of the art collector and the investor. Old and rare coins are often true works of art. The quality and style of coin images and inscriptions provide valuable clues to past eras and personalities. Numismatic artwork reveals much about the beliefs and tastes of earlier generations. Exquisite portraits bring forgotten rulers to life, while religious symbols tie objects of monetary value to the underlying spiritual concerns of past ages. To the investor, it is the coin's underlying monetary value that is most important. The same pieces that are actively sought by the historian and art connoisseur will be highly prized by the investor. The investor can sell these pieces to numismatists and museums.
Features
Prices correspond to specific coin grades. The coin grading system was first developed by Dr. William Sheldon to rate low denomination, base metal coins. Later expanded to include collectible coins in general, Sheldon's scale awards points from 0 to 70 based on the condition of the individual coin. A coin rated 70 would represent an unissued proof piece in absolutely perfect condition. A zero coin, on the other hand, would be almost entirely effaced, and barely recognizable as a coin. The ratings also correspond to terms such as poor, fine and very fine.
Identification
Individual issues are recognized by examining images and other marks. The front of a coin, or heads side, is called the obverse. The rear, or tails, is known as the reverse. Buyers and sellers can consult online services such as The Professional Coin Grading Service (PCGS) and the Independent Coin Grading Company (ICGC), which feature extensive coin catalogs that contain illustrations and descriptions of coins in demand. In addition to the pictures and emblems found on coins, buyers and sellers must also note dates and mint marks, as well as any other identifying legends such as mottoes and descriptions of national origin. Otherwise identical coins may be worth wildly different amounts because of different year of issue, or some very minor difference in imagery.
Warning
Keep abreast of market fluctuations, and always check past prices where possible. In the case of bullion coins, stay up to date with the prices of gold and silver. Gold and silver coins will never be worth less than their actual bullion value. In fact, if they are rare issues, they should be worth much more. Consult with dealers before sending in any coins. Describe the coins as clearly as possible. Buy and sell only when you are satisfied that you are receiving a fair deal.