Numismatics Collecting 101

Following are some tips from the Digital Collection “Heads or Tails: A Beginner’s Guide to Collecting Coins” by Numismaster.com.

For more information about coin collecting, check out the variety of titles available at http://www.krausebooks.com/category/coins_papermoney/3

Q. How do I start collecting coins?
A. Getting started with a coin collection is the easy part. Take a look at the change in your pocket. You may well find a coin that attracts your interest enough for a closer look. No doubt there’s a state quarter or two in there.

Start Collecting State Quarter

Granted, it’s much more difficult today than it was back in the 1960s when silver coins, Buffalo nickels and even Indian Head cents could turn up in your pocket. Admittedly, pocket change isn’t what it used to be. However, with the State quarters coming along at regular intervals and the Lewis and Clark nickels, things are looking up for that pocket change collection.

Visit your local library and sit down with one of their reference books or price guides for coins. Leafing through, you will see dozens of different coins, even in the same denomination.

Store Coin AlbumChances are that at least one will catch your eye — especially gold. Put your checkbook out of reach and keep looking. A first big mistake here can do permanent damage to your finances.

If you want to collect, find something to start with that is common enough to be easily affordable, like State quarters or cents.

For cents, get yourself a folder or album and see what you can do about filling the holes. If you make mistakes here, the losses will be minimal compared to more expensive series.

The State quarters are another good place to start. If you already have several states represented in the coffee mug or tray where they are accumulating, then you are ready to make them into a collection. A local coin shop or a bookstore will have folders or albums that you can buy, which have holes for both the Philadelphia and Denver issues.

Before you start buying coins to fill album holes, make sure you know more about the coin than does the person selling it to you. That’s going to be tough if your only contacts are veteran coin dealers or collectors, but it’s very pertinent advice and a goal to strive for. It will pay you back many times over.

Add to your collection slowly, savoring each new addition. Study each coin you want to buy. Research it. Learn to grade it yourself and compare your grading with the dealer’s marking. Assert your pride of ownership, but don’t broadcast the fact that you are a coin collector. Burglars assume that anyone with two coins to rub together is rich in potential loot.

Q. How do coins, medals and tokens differ?
A. Most people don’t know the differences among these pieces, and the result is that all three get labeled as coins. 

Coins are used as a form of money in transactions of various kinds, from the everyday circulation coins to the storage of vast numbers of bullion coins.

Medals are made to commemorate an event or person. Medals differ from coins in that a medal is not legal tender and, in general, is not produced with the intent of circulating as money.

Coin 2Coin 1 Medal A1Medal BToken C1Token C2

Tokens are privately issued pieces, generally in metal, with represented values in trade or offer of service. They also are produced for advertising purposes.

Q. What are the best ways to study and evaluate coins?
Study 10X Magnifier W CoinsA. Learn by looking. When you look at a coin, what’s the first thing you check? Usually it’s the date. To go on from there, develop a routine that you use for every coin. It goes something like this: Pick up the coin. Look at the date, then the mintmark. Look at all the elements of the obverse design. Then turn the coin over and look at all the elements of the reverse design. Look for obvious damage and telltale signs that the coin has been whizzed or cleaned. Check the edge for problems.

Once you’ve checked the coin thoroughly, go onto the next coin. Above all, resist the urge to just glance at a coin’s date and then go on to the next coin.

Don’t break your routine unless there is something highly unusual that you’ve spotted.

As you start out, especially if you are looking for minting varieties, you will quickly start a pile of coins with something “different.” As you gain knowledge, go back through the pile. There will be several coins that puzzle you. You can’t remember why you set them back. There will be others that you have learned are damaged or for some other reason need to go back into circulation. This is all part of the learning process.

Another important rule — don’t depend on the unaided eye to see everything on your coin. Use a low-power magnifier (3-5X) for large numbers of coins with a 15 to 20X lens for a close-up look at some small detail on the coins. This strength will catch doctoring or cleaning. This takes time, but as you gain experience, you will be able to speed up the process.

Veteran collectors can readily spot problems at a glance. You, too, can have a photographic memory, but it takes practice. The more coins you look at — following your routine — the quicker you will imprint the design in your memory and can quickly spot anything that’s “wrong” with the coin, whether it’s a die defect, a striking problem or damage before or after the strike.

Q. What are good sources to get more coins?
Roll Of CoinsA. Once you’ve gone through the kids’ piggy banks and your pocket change, you’ll need some new sources for coins.

If you have connections at City Hall, the money taken in by parking meters can be a rich supply source.

If you have an account at a local bank, this is a prime place to cultivate the source. Banks have rolls or even bags of coins, but even this source can dry up unless you are willing to pay shipping expenses, or if bank employees also know the value of collecting. When you do find a bank willing to sell you coins, you need to learn their policies on returns and stick to following their instructions exactly. Many banks require that you write your name, and sometimes your address or phone number, on the rolls before returning them. Others may open the rolls and count the coins, guarding against rolls filled with washers, a stunt that can get you in big trouble. 

If there’s a jukebox operator or coin-operated amusements business nearby, the odds are that they have a bin full of foreign coins that patrons have used. Some amazing finds can occur as you sort through them.

Casinos are a great source for quarters. They are always willing to sell you rolls — provided that you’re old enough to gamble.

Also, join a local coin club. This can lead to coins that you can swap with other members or that you can bid on during the club auctions.

Q. How should I handle coins?
Handling Gloves And By EdgesA. Have you ever seen a grown man cry? You will, if you mishandle one of his collectible coins. That’s a lesson that you need to learn quickly and take to heart.

Despite the fact that (most) coins are metal, their surfaces are extremely fragile. A dropped coin is a damaged coin, with a corresponding sharp drop in collector value. Right along with the advice of “Don’t clean your coins” is “Don’t touch your coins.”

Obviously, that’s a bit extreme, but it’s a clear warning that you need to know how to work with your collection without damaging your coins. Rule No. 1 — Always pick up and hold your coins by the edge, never by the faces. If you are working with upper-grade, uncirculated or proof coins, a pair of lintless cotton gloves are strongly recommended. Latex or plastic gloves are not recommended because they oft en have powder or lubricants on them that could potentially harm your coins.

Q. Why shouldn’t I touch my coins?
Buffalo NickelA. The human skin contains acids that will etch a fingerprint into the surface of a coin in a matter of a few minutes. Once that etching occurs, there is no way to remove it without doing permanent damage to the coin and to its collecting value. You need to protect your collection from well-meaning, but ignorant friends or relatives that want to touch. You can warn all you want, but the natural urge is to “feel” and the result will be permanent fingerprints or more damage if a coin is accidentally dropped. A good rule is to never take a coin out of its holder when showing it to someone - unless they happen to be a fellow collector you can trust to handle the coin properly.

If you have a well-worn coin, or a copper or copper alloy coin that has darkened considerably, then you don’t need to be as careful, but it’s better to make a habit of treating all your coins as valuable collectibles and giving them care.

Q. How should I store my coins?
A. Coins can be stored in many ways. Here are some of the most common methods.

Coin AlbumFlips: 2-inch-square plastic “flips” are transparent holders with two pockets — one to contain the coin and one to contain a cardboard ticket on which information can be recorded. It folds over on itself into a size 2 inches by 2 inches.
Originally, they were made only of a material containing polyvinyl chloride. This material was particularly flexible and easy to work with, but eventually it would break down, depositing a green slime on the coins it contained.

Today, flips containing both the PVC formula and a new, more inert Mylar formula are available. The Mylar type is prone to cracking but so far has not been found to damage coins. The PVC type is still popular because it is more flexible, but it is now usually used by dealers and auction houses only for temporary storage. Collectors usually repackage coins purchased in such holders into inert long-term storage.

2-by-2s:Another common coin holder is the “2-by-2.” It consists of a pair of cardboard squares with an adhering film of relatively inert plastic on one side. The coin is sandwiched between the two layers of plastic, and the two halves are stapled together. This does not permit the coin to be removed and touched as easily as storage in flips, but it does permit the coin to be viewed on both sides without opening the holder.Storage 2x2

It is important to be careful when removing coins from these holders so the coin is not accidentally scratched on the exposed ends of the staples that poke out when the holder is pulled apart. These careless staple scratches have ruined tens of thousands of good coins.

Boxes and Pages: Flips and 2-by-2s fit nicely in specially made boxes. They also fit into plastic pages designed to hold 20 of either holder. The pages are transparent and will fit into most loose-leaf binders. It is important to remember not to place coins loose in the actual pages because they often contain PVC.Moreover, the thumb-cuts made to help remove the coins are large enough for some coins to fall through.

Folders and Albums: Many specialized coin folders and albums are designed not only to store and exhibit a collection but to guide collectors. Each coin in the series is individually labeled, making the holder convenient. It is widely believed that one of the main reasons coin collecting was able to catch on with the American middle class in the 1930s was the invention of the “penny board,” a one-sheet predecessor of these modern coin folders and albums.
Old folders and albums were made by processes different from those used today. Older ones contained substances in the cardboard that tone the coins, although actual corrosion is rare. Today, most manufacturers omit these materials from their albums.
The toning also occurs with the long-term use of the orange-brown 2-inch coin envelopes, although it is less of a problem with envelopes of other colors. The toning in this case is caused by sulfur in the paper.

Storage Environment: It is best to store a coin collection in a cool, dry environment. Of course, not everyone lives in such a climate. One common answer to this is to store a packet of silica gel in the same container as the coin collection. The gel is a desiccant and will absorb the moisture from the air. It can sometimes be obtained at photo shops if your local coin dealer does not stock it.

Q. How worried should I be about security?
Canadian CoinsA. For anyone who collects something of value, security is a major issue. Realize that no house is theft-proof, and take reasonable precautions.

Follow Basic Home Security: Make sure all doors are locked and that access cannot be gained through open windows. Many collectors install alarm systems. If you do, remember to place a sticker to that effect in the window. Most alarm companies provide them automatically. If your collection warrants it, consider a home safe of suitable size.

Practice Discretion: Perhaps more important than locks and alarms is being discreet. Do not tell everyone you meet that you are a coin collector. Even if your collection is relatively inexpensive, some potential thieves may presume that all coin collections are valuable. If they hear of your collection third hand, they may not realize it is a $100 collection instead of a $10,000 collection.

Rent A Safe Deposit Box: The most intelligent choice is to keep your more valuable coins in a safe-deposit box in a bank. If your bank is conveniently located to your home or work, you are sacrificing only a little convenience in exchange for peace of mind.
When choosing a safe-deposit box, it is important to consider the environment. It is better to have a box on an inside wall of the vault rather than along the outside wall of the building. This will reduce exposure to temperature fluctuations. Also, do not forget to place a small packet of silica gel in each box.
You may find it more convenient to have multiple safe-deposit boxes of moderate size rather than one large box if your collection is particularly heavy.

Rent a Post Office Box: If you are buying coins through the mail, do not give out your street address. Use a post-office box. Not only does this provide you with a security barrier, it also provides a safe place for your coins to sit if they arrive while you are away.

Q. What are counterfeit coins, and how can I detect them?
A. Counterfeiting is on the rise, although most counterfeits originate and circulate overseas. Collectors should be aware of these counterfeits. Some are more dangerous than others.
Forgeries: The oldest type of counterfeit is often called a forgery. It is a false coin or piece of paper money made with the intent of passing it in circulation. It is usually of adequate quality not to be obvious at casual inspection but is often imperfect. At best, a counterfeiter under these circumstances can get only the face value of the item he is replicating, so there is a limit on the expense he is willing to incur.
Imitations and Evasions: Imitations and evasions are made to circulate but are often not faithful to the original because they are made for use in communities that for various reasons have come to expect that some of their coinage will be counterfeit.
Imitations vary only in style; evasions deliberately modify some aspect of the inscription or design to provide a meager legal defense against a charge of counterfeiting. All of these may fool a collector at first glance, but they usually do not pass close scrutiny.
Many imitations and evasions are historically significant and are frequently collected along with or instead of the original series.
As such, they are called “contemporary counterfeits” because they were struck contemporary to those coins with which they were intended to circulate.
Counterfeits: True numismatic counterfeits are of higher quality and were created with great care to fool numismatic experts. Many counterfeits are made by casting, even though the original coin may have been made by striking.
Look for seams along the edge. They may not be centered and obvious but can be hidden to one side or the other. Also examine the surface under magnification for a multitude of faint pimples or unnatural porosity.
The precise shapes of letters are also something often neglected by counterfeiters. On modern coins an inaccurate weight or incorrect alloy (revealed by specific gravity testing) can be a giveaway. Ancient and medieval coins can vary much more in weight.
Be aware that a great many counterfeiters have sought to hide their imperfections with heavy cleaning. The idea is that a collector examining a rare coin will attribute the problems to abuse rather than forgery.
Souvenirs/Replicas: The last type of counterfeit is of virtually no threat to collectors, but pity the poor tourist. These are counterfeits made as souvenirs. This is not to say they are never created to pass off as authentic coins, but the forger presumes either total credulity on the part of the buyer or an unwillingness to give a critical inspection. Even the color of the metal is often incorrect.
Tens of thousands of these replicating ancients have been sold at archaeological sites in Turkey and the Middle East. Other similar counterfeits replicating 19th-century silver-dollar-sized coins are found in Italy. Often these types of replicas (the more accurate name) are clearly marked as such in museum shops or through legitimate vendors. Often they are even marked COPY to prevent confusion with the real thing.
Since the passage of the Hobby Protection Act, replicas made in the United States have been required to display this word.

Q. How are coins tested to determine metal content?
Hopper Of Coins Ready To ShipA. Many an old-time collector or dealer will use the “ring” test to determine if a coin is silver. Unfortunately, besides being a negative test, it potentially damages the coin, since it involves dropping the coin on a hard surface. It’s a negative test, because the slightest fissure or internal crack in the coin will make it sound like a lead washer.

A scale will tell you as much or more about your coin and its use is a non-destructive test. Don’t let someone else “ring” your coin, either.

Never cut, scratch, polish, rub or otherwise damage a coin in an attempt to determine the metal content. As one example, it is virtually impossible to cut through copper plating on a coin, as it curls around the sharp edge. You’d have to cut the coin in half to see what the core metal is.

Every cut, scratch, polish mark or rub is going to cut any collector value in half or worse. Never allow anyone else to perform these acts on your coin, either. They should know better by now, but there are still collectors and dealers who reach for a knife whenever there is a question about metal content. As with the ring test, a safe, non-destructive test can be performed with a scale.

You will hear a lot about “mint surface” or “mintproduced surface.” That’s the catch phrase for today’s collectors. The surface appearance of the coin that is imparted by the minting process is what makes a coin so fragile. Damage or destroy that surface and you have seriously damaged or destroyed the coin’s collector value.

The whole theory of collecting coins revolves around protecting and preserving that mint surface. In the next chapter, you will read about the pitfalls of cleaning your coins. It explains details that even veteran collectors misunderstand. As you gain experience, you will see for yourself why we make such a big issue of handling your coins with care. 

Q. Should I clean my coins or not?
Morgan DollarA. This is a good place to emphasize, “Don’t clean your coins.”

Until and unless you become an expert at cleaning, you are going to do more harm than good. Even the experts have numerous failures for every coin they improve by cleaning. Going a step further, don’t buy cleaned coins. There is no way to fully reverse the marks or discoloration left by cleaning, so the coin will not increase in value as well as one that hasn’t been cleaned.

Destructive cleaning will reduce the collector value as much as 50 percent or even more. Unless you are an expert at cleaning, almost anything you do is going to cut the value.

This was not always the case. Back in the 1970s, experts recommended cleaning. Today, these same experts will refuse to handle a cleaned coin.

I know of one collector who had thousands of silver dollars. Every one had been harshly cleaned with Bon Ami and every new coin he bought got the same treatment, despite dire warnings from friends and dealers he did business with. The result — the only value left was the silver content, less than an ounce in each coin.

A second collector put his coins through a rock tumbler, ruining the collector value. I had the task of telling him his coins were worthless to collectors after he flew to where I lived to show them to me.

There is no cleaning method that I can, or would, recommend for proof or uncirculated coins. You will have to live with the coin or dispose of it and buy a problem-free replacement.

Several brand-name (TarnX, Brasso) cleaning solutions are on the market, touted as ideal for cleaning coins. Unfortunately, every one of them contains an acid that will damage the coin beyond repair. They remove tarnish, but they take the surface metal of the coin right along with it, destroying the mint-produced surface.

Q. Are there any truly safe ways to clean coins?
Peace DollarA. There’s another group that reacts to advice against cleaning coins by bringing up dozens of “tried and true” cleaning methods that “really work,” which they use as an excuse to ignore advice.  But, they have a point.

There are certain methods involving the use of neutral solvents or other solutions that don’t affect the coin metal and won’t damage the coin. The easiest way to explain the difference is to divide cleaning into two categories — destructive and non-destructive. Destructive cleaning includes any abrasive or acid that will attack the coin metal.

Nondestructive methods
Nondestructive methods include virtually anything that will dissolve dirt and grease without harming the metal. Any abrasive is destructive. No matter how fine the abrasive particles, they will scratch the surface of the coin. Whether sandpaper, crocus cloth, baking soda or a pencil eraser — to mention just a few — abrasives will damage your coin. It isn’t even safe to use a soft cloth or your finger to rub the surface of a coin, because the cloth or finger will pick up fine particles and act just like sandpaper.

Soap and Distilled Water: A weak solution of soap (not detergent) and distilled water is one example of a non-destructive cleaning method. Even so, this solution can damage proof coins or almost any upper-grade copper or copper-alloy coin that has copper as the major ingredient.

US Mint Engraver Puts Finishing Touch On DieFor those coins that won’t be damaged by it, the next step is a thorough rinse in distilled water and then allowing them to air dry, or pat dry. Remember, no rubbing. Use distilled water, because the chlorine in tap water will discolor your coins.

Olive Oil: Heavily encrusted coins can be soaked for several months in olive oil. The oil won’t damage the coin further, but it will eventually dissolve the crust.

Acetone: Acetone is frequently used to clean coins, as it won’t attack the metal. However, since it is extremely flammable, it should only be used in a well-ventilated room, or better yet, outdoors.

Fingernail polish remover contains acetone and it can be used on worn or darkened coins, but it may contain ingredients that might damage or discolor upper-grade or proof coins.

Last but not least: Try your desired cleaning method on a low-value coin before using it on anything in your collection.

Q. What’s PVC damage?
A. Sooner or later you will run into PVC damage, caused by the breakdown of plastic flips or vinyl pages.

The first signs are usually a greenish slime. This should be removed immediately, as it indicates that the coin surface is being attacked. You can stop PVC damage, but you can’t reverse the damage.

Q. Are sonic cleaners OK?
A. If properly used, sonic cleaners that use ultrasound to remove are safe for most coins.

They cannot be safely used on upper-grade or proof coins. For circulated coins, put a single coin in the bowl and clean it. Then dump out the bowl and rinse to remove any grit before putting the next coin in.

Q. Should I try to restore corroded coins?
A. Trying to restore badly corroded coins is a waste of time. Even if you successfully remove the corrosion, there is permanent damage underneath, leaving you with a near worthless coin. The same applies to the patina on ancient coins.

I’ve used metal detectors here in the United States and on beaches in Germany to find coins. However, coins left on or in the ground for a lengthy period are usually corroded. The longer they are in the soil, the more corroded they become. If you live in or have access to a desert climate, you may find coins with little or no corrosion, but they would be an exception.       

Q. What are some essential coin-collecting tools?

TestA. Magnifying Lenses: For active coin collecting, you need at least a 15X magnifier or stronger. 10X is the minimum standard for most minting varieties. If you can’t see it with 10X, then it’s not likely to have any collector value.

If you look at a lot of coins, by the roll or bag, you should have about a 3X to 5X for general examinations, with a stronger lens for a close-up look at something turned up by the lower power lens.

One thing you will learn when using a lens is that you will be able to spot coins that have been “doctored” — altered to hide defects. That beautiful, shiny coin that you see will — under a lens — turn out to have been buff ed or polished, or even sandblasted — alterations you likely would never catch without the lens.

TestMicroscope: If your collecting career leads you into research or authentication, or even if you just want to take a detailed look at your coins, a microscope is the next step up. A good stereo with glass lenses will cost you upwards of $250 to $300. It’s mandatory that it cover a range from about 20X up to about 40X. You will find that with the coin resting on the platform, you can see a lot more than when you are holding the coin in your hand.

When using a strong hand lens or a microscope, turn and tilt the coin to get the light from different angles. This will expose such common problems as light, or reflection doubling, caused by the light bouncing off a shiny coin. It will also help you catch defects, doctoring or maybe even some hub doubling, which in some instances can increase the value of a coin.

TestScales: Just weighing a coin can tell you volumes about it, especially if you get into collecting minting varieties. Routinely weighing coins you purchase or find may help catch some of the counterfeits or save you from buying a fake. Early in my collecting career, I discovered that a Redding powder scale is ideal for the coin collector. It weighs up to 500 grains, to a tenth of a grain. They are available from gun shops that carry reloading equipment.

On today’s market, there are digital electronic scales that will fi t in your shirt pocket. For really serious work, I have an Ohaus scale that can do specific-gravity tests.

Computer: If we consider a computer to be a tool, there is a lot that one can do for the collector. There is a variety of software on the market that will sort out and even evaluate your collection. In a pinch, you can use almost any word processor to log your collection.

Tongs: A pair of plastic tongs also comes in handy. I don’t remember just when or where I bought one, but it’s been very useful. The springloaded jaws have slots that hold the coin so that you don’t have to touch it with your fi ngers.

Stapler: You will also need a stapler. Again, don’t skimp. You need one that will drive the staple through two thicknesses of cardboard. Get one big enough so you can bang on it with your fist. Don’t buy cheap staples, either. They are likely to curl up and die before they make it through the cardboard. I have an old government surplus stapler that has a life expectancy longer than mine. It’s big, rugged and won’t wear out.

Needle-Nose Pliers: The next item is one you may already have — a pair of needle-nose pliers. These are not to use on the coins, but they do come in handy for your stapling  jobs. After you have driven the staples, turn the holder over and fl atten the curved ends of the staple right down into the cardboard. Don’t do this and sooner or later you will scratch a valuable coin with a staple leg that sticks out. Th ey will also rub on the adjacent coins if you stack them in a box.

Protractor: An inexpensive protractor will give you an exact reading on a coin struck with a rotated-reverse die. There are also plastic templates that will give you a size reading on a clipped coin.

Lighting: Did I mention that a good light is a must? Some swear by a small halogen light, but for most uses, including photography, a 60- or 100-watt incandescent bulb in a gooseneck or swing-arm lamp will do the trick. Avoid fluorescent lights, as they tend to distort what you see on the coin.

Q. Help! I just inherited a bunch of coins. What should I do?

Susan B Anthony DollarA. Many collections start with the death of a relative who leaves behind coins, whether an accumulation or a full-blown collection. Few heirs know what to do, so they panic or allow greed to take over and sell out, often reaping only cents on the dollar of actual value.

The rule here is patience. Above all, don’t be afraid to ask for advice on what to do with the coins. If they are obviously high-value gold coins, for example, you might want to talk to an auction house that specializes in coins.

My standard advice to heirs and to collectors is to first make a list. Put down the denomination, date and mintmark for each individual coin and list by the roll if they are wrapped and marked. The coins are not going to lose value as long as they are properly stored, so learn enough about them so that you can decide whether to sell or whether to continue where the collection left off .

Over the long term, almost any grouping of coins, especially an established collection, is going to increase in value.

Q. What are some rules of thumb for buying and selling coins?
A. Here are a few of the basics.Test

• Know more about the coin than does the person selling it. A great way is to use reference guides, such as “U.S. Coin Digest.”
• Know how to grade within a point.Keep accurate records of every purchase and sale.
• The IRS is waiting.
• Learn the minting process.
• Collect what you like and want, not what someone tells you to collect.
• There are no dumb questions.
• Don’t be a checkbook collector. Resist the impulse to buy before you’ve done your research.
• Don’t clean your coins.