Jumpstarting Your Collection

So, you’ve decided to start collecting coins? Are you asking yourself, “Where do I start?” and “Where do I get the coins?” To begin your numismatic journey and jumpstart your coin collection, you must first ask yourself this additional question: “Why do I want to start collecting coins?” Numismatics is “the study, science, and collecting of coins, medals, paper money, tokens, and related objects.” It has also been called “the Hobby of Kings,” as many monarchs have spent extensive time, money, and energy on forming significant collections that are still preserved in museums. Today’s hobbyists have more opportunities than ever to learn about and purchase coins. The Internet has opened the door for many collectors to enjoy: young, old, wealthy, or economical; numismatics is no longer just a hobby for kings!

Why Collect?

People collect coins for a variety of reasons. The most common reasons are investments, inheritance, historical significance, and resale or auction purposes (coin dealers).

As an investment, collectors are interested in profiting from their coin purchases. Some seek short-term gains, while others want to profit over the long haul. Typically, coins hold their face value and increase in value over time. Additionally, some coins are made out of precious metals, which have risen in value over time, allowing a collector to receive extra worth in precious metal weight and currency. (An interesting side note: collectors can now add precious metal coins to a self-directed Individual Retirement Account.)

Many coin investors also expect their estate collections to be passed down as inheritances, hopefully having multiplied in value by that time.

Collecting for historical value and significance is extremely popular. Coins are typically minted out of necessity, but the designs almost always hold historical value or commemorate a person or event. The dates and designs on coins tell a story. 

For example, the Lincoln cent (our longest-running obverse design on a coin at 114 years) shows Lincoln’s portrait on the obverse (or front) of the coin. The cent was issued in 1909 to commemorate the 100^th anniversary of Lincoln’s birthday. 

Another example is the 1976 Washington quarter, the “Bicentennial” variety. The date on the obverse shows “1776-1976,” and the reverse features a military drummer and a victory torch encircled by 13 stars, representing the 13 colonies and her revolutionary victory.

By looking at the dates and designs, we unlock the stories of the past, enabling us to remember and appreciate the efforts of countless others who sacrificed for the opportunity for us to enjoy our way of life today.

Coin Grading

Collecting coins for resale or auction, which most dealers primarily focus on, can be time-consuming and arduous. Recognizing and valuing a coin’s worth requires advanced-level numismatic knowledge and specialized grading. Grading is the process of determining the authenticity and condition of a coin using six general focal points: strike, preservation, luster, color, attractiveness, and mint. Having a coin professionally graded secures its authenticity and condition. Plus, it increases the value tremendously for resale or auction.

Coin Certification Services

• Professional Coin Grading Services (PCGS)
• Numismatic Guaranty Company (NGC)
• Independent Coin Graders (ICG)
• ANACS (no longer owned by the ANA)

Once you have an initial collection of circulated coins in your folders, you’re off to a great start!

The easiest and most inexpensive way to begin a collection is to recognize what you hold in your hands. Start with coins currently in circulation. While collecting from circulation was much more prevalent a decade ago, hobbyists can still acquire vast amounts of pocket change by using cash for purchases. Keeping all your change in a jar or other suitable container for a few months is recommended. 

When you’ve collected at least a few jars worth of change, it’s time to purchase some coin folders. Multiple brands are available for purchase from bookstores or online. All of them will hold coins in different denominations, from cents to dollars, and have date and mint slots. Purchasing cent, nickel, dime, and quarter folders is a fun and easy way to organize and jumpstart your jarred pocket-change collection.

Once you have an initial collection of circulated coins in your folders, you’re off to a great start!

Now, each coin you find in circulation has a special place. Keep collecting until you fill up all the slots, taking note of the date and mintmark of each coin.

The mintmark is the first letter (or letters) of the city location where the coin was minted and is usually near the date on the obverse.

Getting into the practice of looking at your pocket change takes practice and consistency. In our digital world, we rarely find time to recognize the tangible assets around us that still exist. Coin collecting offers a piece of history and nostalgia. After familiarizing yourself with the concepts and tangibility of basic coin collection, it’s time to keep your eyes out for some goodies in circulation!

Getting into the practice of looking at your pocket change takes practice and consistency.

Below are some of the best coins for the new collector to look out for:

Cents

Wheat cents (1909-58) feature wheat stalks on the reverse. Although they are still in circulation, they are becoming harder and harder to find. 

Copper cents (1981 and earlier, and some 1982-dated pieces) are still in circulation and contain actual copper. These are great for collectors who value precious metals.

1943 steel cents struck were during World War II. To save copper for the war effort, the United States Mint produced this popular denomination in a steel alloy, giving the coins a silver appearance. These will occasionally show up in circulation. 

Nickels

2004 and 2005 Westward Journey nickels were produced to commemorate Lewis and Clark’s 1804 expedition across the West after the United States acquired the territory after the Louisiana Purchase. The U.S. Mint struck four reverse designs, all of which are still in circulation. 

Quarters

Coinciding with National Coin Week in 2019, the mint released 10 million America the Beautiful Quarters^TM struck at the West Point Mint. These coins are the first circulating pieces to feature the “W” mintmark and are easily worth $10 or more in mint-state condition. The mint struck these coins to commemorate the following parks: 

• Lowell National Historical Park (Massachusetts)
• American Memorial Park (North Mariana Islands)
• San Antonio Missions National Historical Park (Texas)
• War in the Pacific National Historical Park (Guam)
• Frank Church River of No Return Wilderness (Idaho)

Morgan Dollars

Another great addition to a beginner collection would be a Morgan silver dollar. While seldom found in circulation, it is the best-known United States silver dollar. It was struck from 1878 to 1904 and again in 1921. The 1921 is more plentiful than any other year in the series, and millions exist in Mint State. Most beginning collectors will have a couple of these in their collections.

Where do I get coins that are not in circulation?

Locating Out-of-Circulation Coins

You may be asking yourself where to buy coins and how to collect them. We’ve already discussed looking into pocket change, but there are other common ways to get your hands on more coins.

Local Banks

Many local banks have a small reserve of rolled change available for non-business customers. Ask your teller for $100 in different denominations of rolled change. Banks usually have cents, nickels, dimes, and quarters; quarters; 50-cent pieces; and $1 coins. Selection varies by bank and location, but it always helps to ask.

Vending Machines

Believe it or not, there are still a lot of vending machines that still accept cash and give you back your change in coins. Some vending machines even take $20 bills and give $1 coins back in exchange.

Change Machines

The most prominent change machines are in laundromats. Filling up your quarter coin Folder won’t take long. Just be sure you are actually doing your laundry at the establishment. Many have signs posted stating that machine use is for customers only.

Coin Clubs

You can join many clubs in your area. These groups are a good source of information, networking, trading, buying, and selling. They usually hold weekly member meetings and monthly events, often open to the public.

Flea Markets, Estate/Garage Sales

Every flea market may have a resident coin dealer, but don’t discount the one-weekend sellers’ table that happens to have some of Granddad’s old coins in a box. Checking every table at a flea market is an excellent way to find coins at a cheap price. You’ll find a lot of deals on historical commemorative coins as well.

Coin Stores/Dealers/Conventions/Shows

If you are okay with paying retail, need something specific for your collection, or want to give a nice gift, then it’s easy to go to your local coin store or a local regional coin show or convention. At a show or convention, there are so many vendors with seemingly unlimited choices, not to mention workshops and seminars to help increase your knowledge of numismatics.

The Internet

While this is the easiest way with the most options to purchase coins, it is also the riskiest. Buyer beware. The Internet is absolutely saturated with people selling coins. I suggest you only buy from reputable coin dealers, and preference is given to encapsulated certified coins. That being said, the Internet has become an excellent open-source option for coin trading and learning. 

No matter why or how you decide to pursue your coin-collecting hobby or newfound career, there will always be something to learn and find in the world of numismatics. I sincerely hope you enjoy the journey!