Coin Collecting 101
Collecting Finds
If there is one thing I know about coins collecting it is that, all collectors love finding a “keeper” in their change. I started collecting when I got a curious coin as change from a supermarket. After a purchase the cashier said here is your change sorry for the old quarter. I put it in my pocket without even taking a look. Later that day when I was at home I took out the “quarter” and examined it. After looking at it for a little while I realized it was not a quarter at all it was a half dollar. After a bit more research in an old coin book I had at home (A Red Book from 1983) I fould the Coin to be a 1946 Walking Liberty Half dollar. I was hooked. Here are some more finds I have had since that day:
- An 1913 MS 63 red Wheat Penny in my change from Dunkin Donuts
- About 14 Silver Roosevelt Dimes
- A bucket full of Wheat pennies that I have collected over the years
- A silver proof 1976 Drummer Boy quarter.
- A Seated Liberty Half Dime that I found in a Coin Star machine
- Asked for some half dollars at the bank and got a BU roll of 1964s (all silver)
- In my change once from a vending machine a 1936 Buffalo Nickel
- An 1816 large Cent that someone bought to the bank
- Five silver certificate $10 bills I purchases for face value from my bank.
And here are some of the best stories I have heard from people about coin collecting finds:
- A friend was cleaning out his grandmother’s apartment when he found a false wall in the bathroom and a safe behind the wall. The safe was filled with bank bags of silver coins. We pulled out countless rare Barber Half dollars and built ten full sets of Walking Liberty half dollars. There was thousands of Mercury Dimes…
- A coin shop owner from Massachusetts told me that him and his wife bought a painting from an auction house for the beautiful antique frame. When they got home they peeled off the craft paper and found about 30 $2.5 gold quarter eagles taped to the back of the picture. The tape damaged many of the coins but it was still a great find that got them around $20,000. (One of the coins was a rare quarter eagle from the Dahlonega mint).
- A close friend that owns a restaurant went to crack a roll of pennies from the bank and it was full of $1 gold pieces about 40 in total. He thought they were fake but I ensured them he had struck gold.
- A coin shop owner told me that he had a family full of Russian Immigrants bring in 20 uncirculated St. Gauden’s double eagles they had brought over from Russia. He sent them to a friend at an auction house because he did not have the cash on hand to buy the full lot. After a few months the family came in and gave him $1,000 for not taking advantage of them and for sending them to the proper place. He believes the coins brought in over $75,000 at auction.
If you have a story about finding treasure with coins please post it as a comment to this story.
Happy Collecting!
Grading Your Coins
This is a nice MS-66 Mercury dime
One aspect of coin collecting that can take years to get a knack for is grading. Every coin has many focus areas you must look for to assign the proper grade to a coin. The difference between a coin being Mint State and about uncirculated can be impossible at first to spot but with time you will learn to grade like a pro. The value of a coin not only lies with its relative rarity but it also has a great deal to do with the grade or condition a coin can be in. Coins are graded on a scale from 1 to 70 and they have designations from about good (AG 3) gem uncirculated (MS 70). The difference in one grade point can be in some cases thousands of dollars. Coins can be very common in one grade but virtually unseen in higher grades.
The best was to stat is to know the breakdown of the grading. Coins grade as follows:
- AG-3 About Good
- G-4 Good
- VG-8 Very Good
- F-12 Fine
- VF-20 Very Fine
- EF-40 Extremely Fine
- AU-50 About Uncirculated
- MS-60 Uncirculated
- MS-63 Choice Uncirculated
- MS-65 Gem Uncirculated
- MS-70
Each coin has many various middle grades between those major listed about. Each coins also has their own set of standards for each coin.
Here are my tips to learn to grade:
- Get your hands on an auction catalouge. Cover up the grades of the coins then guess what you think it is. After you have your guess look at the actual grade and figure out why you are off.
- Get a copy of The Official American Numismatic Association Grading Standards of United States Coins (Official American Numismatic Association Grading Standards for United States Coins)
- Look at dealer inventories of coins you collect. The guess what they are and ask the dealer how you did.
- Pick a coin like the mercury dime and obtain examples from all ranges of grades so you know what to look for in that coin.
- Always look first with you naked eye, then once with magnification. Scan the coin for wear or scratches, always check for rim chips, think about color and tone. Ask yourself if you think the coin is original.
- Always think what did this coin look like when it was first struck then work backwards from that point.
- Look for strike detail and compare this to wear. Do not mistake a weak strike for a worn coin.
It is very hard to learn how to grade every coin out there so pick a few at first and learn them inside and out then slowly expand. When you are grading a coin do not forget to think if the coins is authentic and if the coin has been cleaned.
The coin pictured is a nice MS 66 Mercury dime. The coin shows a nice as minted luster, the coin has good color, but the strike is a bit weak leaving the coin at MS 66 rather than MS 67 or higher. This is a good example of a gem uncirculated coin.
Good luck and happy collecting. Get out and grade.
Selling Coins on Ebay
At some point or another everyone has a coin or a bunch of coins they want to sell on Ebay. I have found Ebay to be a great place to both sell and buy coins if you use the proper caution and if you know what you are doing. Here is my list of ten things you must know to sell coins on Ebay:
- Is the coin original? If you know it is fake or you think it is fake, keep it off ebay. You could ruin your ebay reputation which is key for all future sales
- What is the coin worth? You should do some research using The Official Red Book: A Guide Book of United States Coins 2009
Set reserve and starting prices accordingly
- Spell everything in the coin description correctly. You would be surprised to see how many coins on ebay have spelling errors in their descriptions and because of this they do not sell for the true market values.
- You should have a good photo of both sides of the coin. A great photo is important because coin collectors are so picky when buying coins they want to know what they are getting.
- Stand behind your coins! Offer a fair return policy with customers and realize all sales on the site reflect you as a collector.
- Be smart with shipping and insurance. Do not skimp on either because it could hurt you in the end. I always suggest if you are selling coins on Ebay use tracking so you know if the customer received it.
- Do not do business out side of Ebay! If you get an email that asks to do business outside of Ebay to avoid seller fees forget. It may sound like a good idea but there is no reason to do it. Ebay is set up for a reason and it protects its buyers and sellers.
- Use paypal!
- Try to make lots out of common coins and sell rare coins as singles.
- Think of a fun way to get repeat customers. One of the best ways to build up your ebay business is repeat customers. I would always suggest freebies. I used to put a silver mercury dime in with any purchase people made. I have also bought from collectors that put in two dollar bills or just a simple print out of the history of the coin. Also if you are like me and you have a coin blog invite them to check it out with a business card or a flyer.
So have fun with Ebay. Be careful and enjoy making a little pocket change.
Happy collecting!
Is it Safe to Buy Coins on Ebay?
It is always good to keep in mind you get what you pay for. For some coins eBay is a great option. As it is with any coin, it is always better to buy certified on eBay.
Do not buy into a seller’s story. If it says they don’t know what the coin is or they have no experience with coins, check out their feedback. If they have sold 14,000 coins chances are they know something about coins.
Do not be a fool for a certified coin. Make sure it still has good eye appeal and nice toning. Also be sure to check out the certification on the NGC or PCGS web page before you buy it. Avoid third party grading agencies to protect yourself.
Only buy what you can afford on EBAY. With the credit crisis and in a recession it is best to keep track of your online spending to avoid credit card debt.
Keep shipping in mind it can add extra costs pushing you over that break even mark. Be sure to read all descriptions and all user policies. Don’t be afraid to ask question to the seller about how they go the coin and what they think of it.
When it comes down to it the best place to buy coins is from a reputable dealer that you can build a relationship with. If you bring them business they will watch out for you. It is relationships with other collectors and dealers that make the hobby so enjoyable. Sharing stories and showing off recent purchases are what the hobby is about. EBAY is just as safe as buying coins from a dealer you do not know but it cuts out the human element of the hobby.
There is nothing like getting to look through a dealer’s inventory for that one perfect addition to your collection. Do the right thing and make all major coin purchases from a dealer, but who am I to say you can’t pick up that EBAY coin you are watching right now for a few bucks under wholesale.
Collecting 101: RECESSION COLLECTING TIPS
It is about what you have not what you need when money is tight!
Focus on what you have not what you need. Look through your collection for coins that should be sent in to be graded and find coins you think can earn an upgrade.
The mint has a lot of great series that are circulating right now. Begin a MS set of presidential dollars or finish up your MS set of state quarters. These coins may not yield the largest financial returns but they will give you a cheap coin fix.
Spend time working on organizing your collection and sell the coins you really could live without. With these excess funds buy coins you need for sets you are working on.
Eliminate the junk. There is no need to hang on to all of those pre-1964 dimes you pulled out of circulation or the other silver coins that have no value to your collection. Save your best of each date and mintmark and sell the excess. Trimming the fat can be a profitable way of clearing some space in you collection.
Write an article for RCI news (my newsletter). It is free to do and very enjoyable.
Check out garage sales and flea markets for diamonds in the rough.
Good luck!
Coin Collecting 101: Type Set Collecting
A nice type set does not have to be all high grade!
When you first begin it is hard to pick a concentration for collecting. The perfect place to start is a type set. A type set is one example of every coin. The set includes every major issue from half cent to silver dollar and can even include examples of the gold coinage.
With a type set you are forced to learn a little about each coin in the set to make an educated purchase. As you complete the set you will have physical example of all US coinage and can pick what to specialize on. You may have really enjoyed the hunt for a capped bust quarter and decided these are the coins you want to concentrate on. You also may discover coins you did not know were out there like the elusive 20 cent piece.
Type sets also can be a good way to meet dealers in your area. A type set can be done with raw coins using a Dansco Album or with certified coins using a registry like the NGC registry.
When making a type set try not to combine UNCs with Proof coins because this will cause them to stand out too much. A nice proof set is well balanced and try to find a coin with something significant about it. For example: when picking a braided hair large cent for my type set, I picked a 1855 slanting 5’s, knob on ear. I picked this coin because it is a good coin to talk about. It is not that rare but it adds significantly to my type set.
Once a type set is complete it can collect a pretty premium if all of the coins fit together well. A nice completed type set can bring thousands at auction.
Good luck with your type set!!
