The phasing out of the penny might seem insignificant, but it highlights a deeper truth: even the most common currency eventually fades from circulation. This can be a gateway to a fascinating hobby: coin collecting, or numismatics. If the idea of uncovering historical details hidden in metal appeals to you, here’s how to get started.
Why Collect Coins?
Coin collecting isn’t just about hoarding metal; it’s about engaging with history, art, and economics. Each coin tells a story – about the era it was struck, the ruler it depicts, or the economic conditions of its time. A seemingly worthless coin might reveal more about the past than textbooks ever could.
First Steps: Knowledge is Key
Before spending a dime, invest in knowledge. According to Donn Pearlman, a former numismatist and journalist, the first rule is simple: “Buy the book before the coin.” For U.S. coins, the standard reference is A Guide Book of United States Coins (known as “The Red Book”). Similar resources exist for international currencies.
Collect what interests you, whether it’s historical events, specific designs, or a complete “type set” of each denomination from a given period. The beauty of the hobby is its accessibility: you can begin with coins found in circulation for under a dollar. Coin shows are also great places to learn and network with experienced collectors.
Value: Age Isn’t Everything
A common mistake is assuming older coins are always valuable. Ancient Roman bronze coins can be found for under $50, while a 1913 U.S. Liberty Head nickel can fetch millions because only five are known to exist. Value depends on scarcity, condition, and demand. A worn Indian Head cent from the early 1900s might be worth a few dollars, but a mint-state specimen could be worth thousands.
The Cardinal Rule: Don’t Clean Your Coins
Cleaning coins aggressively destroys their value. A widow once scrubbed her late husband’s collection with a scouring pad, believing it would increase their worth. Instead, she reduced a $1,000 silver dollar to a $100 item. Collectors value original surfaces, even if they show wear.
Handling and Storage: Preservation Matters
Store coins properly to prevent damage. Avoid PVC-based containers, which can corrode metal over time. Handle coins by the edges to avoid fingerprints. Graded coins from reputable services like the Professional Coin Grading Service are sealed in tamper-resistant holders.
Avoid Scams: Trust But Verify
The coin market has its share of scammers. False advertising, counterfeits, and overgraded items are rampant online. Pearlman’s advice is blunt: “If you don’t know coins, then you better know your coin dealer.” Work with members of professional organizations like the Professional Numismatists Guild (PNG) or the American Numismatic Association (ANA), and check their Better Business Bureau ratings.
“There is no Santa Claus in numismatics.”
Coin collecting is a journey of discovery, but it demands diligence, knowledge, and a healthy dose of skepticism. Starting small, researching thoroughly, and working with reputable dealers will set you on the path to a fulfilling and potentially valuable hobby.
