This article discusses the basics of coin collecting, and describes how one can ease into the hobby quickly and cheaply.
While to some it may seem odd to spend new money to buy old money that you never intend to use, numismatics -- the collection and study of money, particularly coins -- is rapidly becoming one of the world's most popular hobbies. There was a time when only wealthy people, such as aristocrats, could afford to indulge in the hobby of coin collecting, thus earning the pastime the sobriquet of "the Hobby of Kings." Things are different today; so many people collect coins now that some observers have come to call it "the King of Hobbies." Nowhere is this more true than in the United States, where interest has skyrocketed in recent years due to the release of new varieties of quarter-dollars.
Part of numismatics' charm is its accessibility. It's easy to get started: most people start by culling interesting coins from their spare change. Once past this "accumulator" stage, coin collecting may get a bit more costly, but it can still be an inexpensive and rewarding hobby. Most coins younger than two hundred years old were minted in the millions or billions, and it's often relatively easy (with, perhaps, a few exceptions) to collect every coin in a series. For example, a set of Lincoln cents with the Lincoln Memorial on the reverse wouldn't cost much money to accrue, although it might take a little a good bit of time -- and that's where the fun comes in. Of course, as with most hobbies, how much you spend (both financially and temporally) is up to you.
If you really want to get a good start in the hobby, you should have a plan in mind. What appeals to you? Do you prefer silver coins, or a particular denomination, or do Indian head cents catch your eye? Silver, gold, and platinum coins can be an excellent investment, since they can be valuable both as coins and as precious metals. However, they can be a bit costly for the new or cautious collector. Many people ease into the hobby by collecting small coins, such as early cents or dimes. Although some of these coins fetch a nice premium -- some 1909 U.S. cents are worth hundreds of dollars, as are some 1916 Mercury dimes -- most are easy enough to obtain, often in bulk. Some people prefer to collect one of each type of coin ever produced by a particular nation, regardless of date. Still others look specifically for top quality coins, leaving the rest for less choosy hobbyists.
If you choose to collect a specific type of coin, remember this piece of advice: before you buy the coin, buy the book. There are books out there for every type of coin ever minted, often written by professional numismatists. These books can be invaluable, for they tell you what to look for in a particular coin type. In most cases, the authors provide illustrated examples of the types of mint marks, varieties, and errors to look for. Many of these coins escape notice because their owners don't know what to look for and some of them, such as the 1955 Lincoln cent error known as a "doubled die," are worth a great deal of money.
Once you've bought and studied the book, you can get started. You might try to collect your target coins from your pocket change. You can find the occasional treasure this way, but more often than not, the coins you'll see will be highly-worn or fairly new. You're unlikely to find older coins the way, and if the series you're interested in is no longer minted, forget it. One place you can look for a more complete set is a local coin shop. The coin dealer will be happy to set you up with a starter collection of the type of coins you've chosen, including albums or other materials to keep them in, for a reasonable price. Another way is to check online auction sites like Ebay -- if you look closely enough, you should find plenty of not-so-rare coins that may not be worth much, but are great for when you're just starting out. There are many single-coin auctions, but you'll also find plenty of multi-coin lots that can result in great, inexpensive "instant" collections for the new collector. All you have to do is make the highest bid, and they're yours. However, you should exercise caution with items you're buying at a distance; make sure the seller's feedback is good before proceeding.
As you advance further into the hobby and become a bit more serious about your coins, you might want to investigate ways of keeping the more valuable ones safe. Albums are sufficient for everyday coins, but they cannot prevent those coins from tarnishing, and may cause a specific type of wear called "album friction." One way to take better care of your coins is to seal them in cardboard holders, which include a coin-sized cut-out faced with clear mylar plastic. However, these are not airtight, and may allow air and moisture inside to damage the surfaces of the coins. Even better are airtight holders made from inert plastic, which snap shut and seal out contaminants for good.
A special note of caution: even if a coin seems filthy to you, NEVER try to clean it. No matter how gentle you are, your efforts will strip detail off a coin along with the tarnish or dirt, often damaging it so much that it loses significant value. It may also leave scratches called "hairlines" all over the coin, along with bits of the cleaner in odd places, such as inside the loops of letters and numbers. The most you should ever do is soak a dirty coin in soapy water for a few days, and then wash away the loosened crud with a stream of water. If a coin is tarnished, don't use a chemical cleaner on it; in many cases, this will cause chemical reactions on the coin's surface, resulting in a worse-looking coin a few months down the road. In any case, a shiny coin in low-grade condition virtually cries out that it's been cleaned. Often, light tarnishing and toning can increase the value of a coin.
Coin collecting can be a rewarding and enlightening hobby, and you can spend as much or as little on it as you like. Although coin collecting can never replace shrewd investing, if you're lucky those coins you collected as a kid will be worth a good bit when you're older. More than one person has retired on the proceeds of their coin collection. In any case, if you decide to collect, welcome to the club, and good luck!
