What You Should Look For in a Coin

Coin collecting is not really about investment, it should be a fun and thrilling hobby. While the overall goal of a coin collector is to complete a set of coins, learning what to look for in a coin is important to make sure no one can take advantage of your need to complete a particular set.

Coin collecting is a fun hobby to start. The thrill of hunting for old coins is enough for many people to continue doing it. Other people, though, think of coin collecting as an investment, something they can profit with. If you are one of those people, then you can find several types of coin in this article to help find out what others are looking for.

Most coin collectors would look for only a specific kind of coin. These will make their collection more valuable and interesting for buyers. Others are collecting for sentimentality and are looking more at the coin’s uniqueness.

Series collectors are those people looking to get one of each date for every time a coin was minted. They are looking to acquire a coin that marks every year and every design changes made in that coin.

Type collectors are those people who are looking to get one of each coin where there are changes made.

Ancient coin collectors are those people looking for coins spanning 650 BC – 450 AD. This is the time when coins were invented and there were silver, gold and bronze versions of it. It also marks the time when Roman emperors are the rulers and most of them feature famous Roman emperors, Roman towns and gods.

Token collectors are those who are looking for different kinds of tokens that were used in exchange of real money where there is a lack of coins. These tokens were used as local currency even if the government has not given permission for it to be used.

Coins are also graded. A coin’s grading depends on its condition and the price of the coin will rely heavily on it. It is important for a coin collector to know how to grade a coin to make sure that he is not swindled by individuals looking to make a quick buck.

Uncirculated coins are those coins that are not showing any wear and tear or to use a famous term, in mint condition. A mint state (MS) grading depends on a coin’s luster, contact marks, hair lines and overall appeal. A coin can have a grade ranging from MS-60 (dull luster) to a flawless MS-70. Although MS-70 is considered unobtainable, a grade of MS-65 and higher will make a coin’s price shoot up.

Circulated coins are more forgiving, it does not take into consideration the amount of scratches and dirt a coin has gathered along the years. Grades for circulated coins will vary. AU (about uncirculated), EF (extremely fine), VF (very fine), F (fine), VG (very good), G (good), AG (about good), F-2 (fair) and P (poor) are used as indication of how much a coin is worth.

These grades are dependent on a circulated coin’s luster, visible wear, design elements and visibility of letters and numerals. Unlike uncirculated coin’s grades, though, these grades do not dramatically lower a coin’s value. This is wonderful for people who are looking just to complete a collection and do not care about a coin’s mint condition.

Pricing of a coin will usually rely on a coin’s supply and demand. Very low supply and very high demand will make a coin’s price shoot higher. However, high supplies of the coins will depreciate a coin’s value.

Demand is usually established by coin dealers where they take into consideration people wanting to buy coins and the number of people selling them. Once a coin becomes difficult to find, coin dealers will usually make its price higher in such a way that it will make more people inclined to sell extra copies of their coins.

Grading and pricing a coin usually takes a lot of experience to master. Although there are several tips and guidelines to look out for in grading a coin, only professional dealers have the final say on how much is a coin’s worth. It does not hurt, though, to know this grading is done and why your coin was graded differently from what you saw.

Coin collecting is not really about investment, it should be a fun and thrilling hobby. While the overall goal of a coin collector is to complete a set of coins, learning what to look for in a coin is important to make sure no one can take advantage of your need to complete a particular set.

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