Bucket of Coins

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First, an Overview about the author -

I am a coin expert.  I have been a coin collector, a coin dealer, a coin grader, or quite simply a “Numismatist”.  Coins have been a large part of my life for nearly 40 years. I have studied, owned, and marketed primarily 19th and 20th century coins, however I have delved into Non-USA coins in recent years. Since I was a young child, I have been fascinated with the history and artistry of coins.  I have shared my coin experiences and knowledge in coin clubs, cub/boy scouts, civic events, with other collectors and friends.

Now through the internet, I have decided that all this knowledge and experience I have acquired should be written down for others to learn from and educate themselves so they too can thoroughly enjoy coin collecting.  It has been a fulfilling hobby or in my case an obsession. I dream about coins!  I spend most of my free time researching and reading about coins. I am a member of the American Numismatic Association (ANA).

I have been that coin buyer trying to negotiate the “best” deal for that special coin I wanted for a stingy dealer. I have been on the other end as well, being the dealer trying to maximize my profit margin selling to a coin collector. I have seen families take coins obtained through inheritance to the coin shops to sell them. I have metal detected hundreds of days over the years in search for hidden treasure. I have built raw coin sets and Third Party Grading companies Registry sets. I have accumulated a library of books for reference so I can research and evaluate different coin grades. I participate and contribute on most of the major coin forums. I have knowledge to share!

The words on this website are from my personal experiences coming  straight from my mind and is just my opinion. YOU need to draw your own conclusions, if you don’t agree so be it, we agree to disagree. One thing I have LEARNED is you can never know too much when it comes to coin collecting.  There is something new to learn everyday. But that’s what makes this world so great everyone can have an opinion. So sit back and enjoy as I expand your horizons and your interest in what I feel is the greatest hobby of all times: COIN COLLECTING!

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A Brief History of coins -

History tells us that the first metal coins where made of bronze and came into existence around 1900 BC. Coins evolved to assist with creating an acceptable method of exchanging for goods and services. This was easier than using things such as livestock, crops, or labor to obtain something that someone else had. It also allowed items to have an established value or worth to them. Coins became the baseline equivalent to goods and services without physically having to give your cow to someone for some labor, for example.

Coins began being struck in metals which people would identify as rare and valuable. Gold and silver compositions where popular choices and still are today. Since value of the coin was hinged on the weight and percentage of metals contained in them, different uniformed sizes also referred to as denominations, indicated the value of the metals. Government authorities across the world began creating their own versions of coins to be used as money to spur trade with other countries.

As time has gone by coins compositions have changed and what started out as being an uniform unit of exchange based upon these compositions, most of the world now uses less market volatile metals for their coinage in conjunction with paper currency. There are a few exceptions such as coins minted and sold/traded based upon their Gold, Silver, Platinum, and Palladium values on the commodities market. Examples of these would be the United States American Eagles, South African Krugerrand, and Canadian Maple Leaf Gold and Silver coins.

One thing that remains consistent over the years for most countries has been the mintage of new coinage and changes in design. For example, the United States Dollar coin has gone through a number of design changes since it’s inception in the late 1700’s. It began as a Bust Dollar to a Seated Liberty Dollar to a Trade Dollar to a Morgan Dollar to a Peace Dollar to an Eisenhower Dollar to a Susan B. Anthony Dollar to a Sacajawea Dollar to end up in the current run of US Presidential Dollars and a new variation of the Sacajawea Dollar. There are new coins every year so it definitely does not get boring for coin collectors! Now that we have a basic understanding of how coins came to be let’s move on to our next topic….

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Shoot for the moon!

Why collect coins?

Coin collecting has been known as the “Hobby of Kings”, however that should not stop anyone from starting this fantastic hobby! The number one reason to collect coins is it is easy to do and anyone can do it!  It does not take anything but a handful of pocket change or as simple as finding a coin on the ground to get started. Coin collecting is a really interesting hobby and it can be a challenge as well. There are so many options and ways someone can approach coin collecting. Here are a few:

1. Collecting one coin for each year from a certain denomination. Example of this would be trying to get one Lincoln cent for each year since the Lincoln Memorial cent came into existence. This will span 1959 to this year. Once a coin collector has several coins in the set, this collection could be easily expanded to include  Lincoln cents minted by the Philadelphia Mint, the Denver Mint, and the San Francisco Mint. Another thing most coin collectors do is to upgrade their coins in their sets with ones in better condition than the ones currently in the set. Typically this is done to replace coins with ones with less wear (more details visible) or less dings and scratches.  While completing a Lincoln Memorial set, a coin collector decide to expand their Lincoln cent set to include the Lincoln Wheat Cents. This would include all Lincoln cents minted from 1909 to 1958. This set is highly desirable and very popular with most coin collectors today. These are not found too often in circulation today, therefore outside sources may be needed to acquire the majority of the wheat pennies needed to complete a set. Some of the harder to find or “key” dates will cost several $100s. It is not uncommon for coin collectors to exclude these high dollar cents from their sets as virtually every collector knows they are difficult to find. This scenario can be done with just about any denomination of US coinage produced today.
2. Year Type sets - Year Type sets are easy to do as well. Basically it is the same principal described above however the main difference is the coin collector picks a year and gets every denomination of coins minted for that year. There are several ways to accomplish this task. It can be done by pulling coins out of circulation or the quickest way is the purchase a US Mint set which has been packaged by the US Mint for coin collectors. The US Mint has been producing these sets since 1947.
3. US Type sets -  United States Type Sets are probably the most interesting of all sets coin collectors attempt to assemble. A decent basic 1800 to present Type Coin set can be put together for under $2000. What this set includes are for each denomination every time there was a change in the coin’s design the coin collector would acquire one example to represent the change. This is typically done for every denomination, however there are simpler type coin sets that can be done. For example an interesting one is the United States Five Cent Type Coin set. This set would consist of ten coins and only one of each of the following coins is needed between the years of it’s mintage to be a representative example of the Five Cent Type: 1. Shield Nickel with Rays (1866 - 1867), 2. Shield Nickel without Rays (1868-1883), 3. Liberty Head Nickel aka V Nickel no “Cents” (1883), 4. Liberty Head Nickel aka V Nickel with “Cents” (1883 - 1913), 5. Buffalo Nickel Type 1 (1913), 6. Buffalo Nickel Type 2 (1913 - 1938), 7. Jefferson Nickel (1938 - 2003), 8. Jefferson Silver Wartime Nickel (1942 - 1945), 9. Jefferson Westward Journey Nickel (2004 - 2005), and 10. Jefferson Return to Monticello Nickel (2006 - Present). This type of set can be done for any and all denominations.
4. There are also coin collectors that collect first year of a denomination’s issue for their type sets. Another is finding coins for a certain type or denomination is all grades About good through Mint state.

As you can imagine, the possibilities are only limited by your pocket book!  As I have seen many times before someone decides to start a Very Fine or better condition Type set and end up constantly upgrading their coins…it is ever evolving and fun!

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Where to find coins

The most obvious place is right in your own pocket! In your pocket you can find a multitude of varieties of denominations, type coins, varying conditions, and years.  This is where most coin collectors look first. There probably is not one coin collector that does not look through his change prior to handing it or paying for something. Most coin collectors save up their change and then sort through it prior to putting it in their pocket to spend or take to the bank.

In today’s world of high speed internet, the majority of coins are purchased virtually through web-stores such as Coins For Sale aka Coin Collectors Store. Web-Stores such as Coin Collectors Store, make obtaining nice collectible type coins easier than ever. Now with a few clicks of a mouse a coin collector can search, find, and purchase a coin easier than ever. It’s the only way to buy or sell!

There are a few other ways to find collectible type coins for those who are not well versed in internet usage and old time traditionalists. These would include local coin shops and coin shows. The biggest draw back to these venues are the limits on inventory since overhead they have for inventory, rent, travel, and advertising all have to be added into the selling price of the coins. It’s very seldom that a coin shop will receive new inventory unless they are actively trading with other shops or dealers. It is interesting to see what other people have and strike up conversation about coins but the reality is a lot of time and extra expense such as travel has to be added into the overall “cost” of the coin which a coin collector purchases in these venues.

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How to store coins

There are several ways in which coin collectors can store their coins rather than in a coffee can or cigar box. One of the cheapest and more popular ways collectors store and display their collection is  using coin folders. Coin folders are made by several manufacturers. Coin folders are usually tri-fold cardboard sheets with holes cut in them with a paper backing to hold the coin in the folder. The coin collector will be required to push their coins into these tight holes and sometimes it may take some considerable force. On the cover and spine of these folders usually identify the type and year range the holes will  accommodate.  There are coin folders for almost every type of coins and are mainly used for beginning type sets by year, for example a popular coin folder has been 1959 to present Lincoln Cents set.

A few advantages to storing coins in coin folders are:

1. They are relatively inexpensive.
2. Assist with keeping track of the coins in a collection.
3. They are easy to store due to the thinness of the coin folder.
4. Some coin folders contain interesting facts about the coins the folder was designed for along with mintages.

A few disadvantages to storing coins in coin folders are:

1. The coins are sometimes difficult to push into the holes.
2. The coins will sometimes fall out if the hole is too large.
3. Only one side of the coin can be seen.
4. Over time, the coins could adhere to the paper backing of the folder.
5. Have the tendency to tone or discolor coins.

Another way coin collectors store individual coins is using specifically designed 2″ x 2″ or 3″ x 3″ cardboard coin holders with a clear plastic “window” the diameter of the coin and then either seal or staple the three unsecured sides once the coin has been placed into the holder. These holder can be written upon for making notes for categorizing, pricing, condition grades, or even how, when, and where the coin was acquired by the coin collector. Coins placed in these holders are usually stored in binders using plastic sheets designed to hold 2″ x 2″ or 3″ x 3″ holders. There are also boxes that will allow the holders to be stood up on the edges for easy storage and filing.

There is also a variation of the cardboard holders, referred to as “flips” in the coin world. These holders are 100% clear plastic with two pockets which will accommodate  have two coins or as most coin collectors use them by placing a coin in one side and information on the other side. These holders allow the coin to be seen on the obverse and reverse as well.

Some advantages of  square cardboard/plastic holders are:

1. The coin is protected from mishandling by the cardboard and plastic  covering.
2. Ease of storing the coins.
3. Coin is viewable while still being protected.
4. Archiving information can be placed directly on the holder without effecting the coin.
5. Ease of displaying/access.

Some disadvantages of the square cardboard/plastic holders are:

1. The plastic can tear and the coin fall out.
2. After long exposure, the holder can cause the coin to discolor or tone.
3. Rather time consuming to put into the holders.
4. More expensive than a coin folder.

Another popular choice in recent years for coin storing/preservation is having a Third Party Grading (TPG) company encapsulate the coin in a hard plastic holder. These holders are usually sonically sealed so that they can not be opened or removed from the holder without damaging the holder beyond repair.  These holders are usually stackable when they are from the same company but they are not compatible with other company’s holders. The TPGs  have storage boxes which hold 20 holdered coins to assist with transporting them. This is a preferred choice for coin collectors whom prefer to take the guess work out of grading and preserves the coin. More details about this will be covered later in this blog.

Some advantages of a TPG plastic holder  for storing coins are:

1. Semi-Permanent storage for a coin.
2. Coin viewable from almost all perspectives.
3. Durable.
4. Best protection for a coin.

Some disadvantages of  a TPG plastic holder for storing coins are:

1. Most expensive form of coin storage, includes “Genuine” or “Grading” of the coin.
2. These holders occupy the most storage space of any other type of holder.
3. Holders are prone to scratches if not carefully handled, hence distorting the view if over the coin.

The last type of coin storage is Professional Coin Albums. These albums are considered “upgrades” to the coin folders, previously discussed. The albums are considered to be “museum quality”. They are similar to  the coin folders as they have holes in the album pages for the coins to go into. The coins are viewable from the obverse and reverse. Rather than pushing coins into the holes they are simply placed in precisely cut holes with clear plastic slides which hold the coins in place. The albums have the ability to add new pages and the nice feel and look for displaying the coins.

Advantages of the Professional Coin albums are:

1. Excellent presentation of coins.
2. Safe storage and preservation of coins.
3. Easy to use.

Disadvantages of the Professional Coin albums are:

1. Approximately four times more expensive coin folders.
2. They fit nicely and uniformly on a bookshelf but they do require more room.
3. Sliding the plastic holder sheets in and out causes them to scratch.

There are several other things to consider when storing coins.  Humidity and moisture are not a coin collector’s friend! The truth is they are most likely the biggest threat to coins and can cause the most damage to them. Therefore, it is extremely important to keep them in a warm dry place. If the plan is to store your coins in a drawer or on a bookshelf in an air conditioned and heated house in the open, the chances are if it is comfortable for you it may be fine for your coin collection. However,  it is recommended if coins are going to be stored in an air tight place such as a safe or safe deposit box in a bank that silicon gel desiccant be placed into the storage area to absorb any and all unwanted moisture. Silicon gel desiccant is often seen as part of packing material about the size of sugar packet and feels like small hard round beads inside of it with a “Do Not Eat” warning label on it.  The nice thing about silicon gel desiccant is it can be found at most safe or locksmith stores and it is a non-hazardous material to use. Some people take this form of desiccant and “re-charges” it by placing it in an oven at low temperatures to remove the close to 40% of it’s additional weight in water the gel had absorbed.  It has the highest moisture absorption rate of almost any desiccant in the market. How much should you put into your storage area depends on the humidity. A good starting place would be by the feel of the area the safe  is being stored. It’s my opinion you can not have too much moisture absorbing material where you store your coins.

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Future topics to be found in the Monthly Archive Blog section:

• TPG vs Raw rare coins  Posted!
• Photographing Coins  Coming Soon!
• Composition of Coins  Coming Soon!
• Numismatic Value vs Bullion Value  Coming Soon!
• To Clean or not cleaning coins  Coming Soon!
• Types of Dealers  Coming Soon!
• Error Coins  Coming Soon!
• Cataloging Coins  Coming Soon!
• Non-US coin collecting  Coming Soon!
• Famous Coins  Coming Soon!
• Coins to look for in circulation/every day change  Coming Soon!
• Proof vs Mint state  Coming Soon!
• US Type coins  Coming Soon!
• Coin groups/Associations/Clubs  Coming Soon!

If you’d like to request information to be posted in the blog concerning questions you have, please email me at MrMan@bucketofcoins.com.