| In coin collecting the condition of a coin is | | | | gouges, can substantially reduce the value of |
| paramount to its value; a high-quality | | | | a coin. Specimens are occasionally |
| example is often worth many times as much as | | | | "whizzed"--cleaned or polished in an attempt |
| a poor example—although there are | | | | to pass them off as being higher grades or as |
| always exceptions to this general rule. | | | | proof strikes. In general, the buyer is |
| Collectors have created systems to describe | | | | cautioned to be careful of any unknown |
| the overall condition of coins. One older | | | | seller's claims. Because of the substantially |
| system describes a coin as falling within a | | | | lower prices for cleaned or damaged coins, |
| range from "poor" to "uncirculated". The | | | | some specialize in their collection. There is |
| newer Sheldon system, used primarily in the | | | | a market for almost any rare or obsolete |
| US, has been adopted by the American | | | | coin. |
| Numismatic Association. It uses a 1–70 | | | | |
| numbering scale, where 70 represents a | | | | Many people search loose change and bank |
| perfect specimen and 1 represents a coin | | | | wrapped rolls of coins for collectible coins. |
| barely identifiable as to its type. | | | | Amazingly, old coins continue to circulate. |
| | | | Some over 100 years old! Search for terms |
| Several coin grading services will grade and | | | | like "coin roll hunting" to see web sites |
| encapsulate coins in a labeled, air-tight | | | | that are dedicated to this hobby. |
| plastic holder. This process is commonly | | | | |
| known as "slabbing", and is most prevalent in | | | | Coins as an investment |
| the US market. Two highly respected grading | | | | |
| services are the Numismatic Guaranty | | | | A common reason given for purchasing coins is |
| Corporation (NGC) and Professional Coin | | | | as an investment. Coin prices can be |
| Grading Service (PCGS). However, professional | | | | cyclical, and prices may drop for coins that |
| grading services are the subject of | | | | are not in great long-term demand. In |
| controversy because grading is | | | | addition to demand, condition and rarity |
| subjective—a coin may receive a | | | | (which can be estimated via mintage figures) |
| different grade by a different service, or | | | | are also determinants in pricing. Age of a |
| even upon resubmission to the same service. | | | | coin per se is not a significant factor. |
| Due to potentially large differences in value | | | | |
| over slight differences in a coin's | | | | Many of the reasons given for investing in |
| condition, some commercial coin dealers will | | | | coins are similar to those given for |
| repeatedly resubmit a coin to a grading | | | | investing in stamps or gold. As with most |
| service in the hopes of a higher grade. | | | | collectibles, a coin collection does not |
| Buyers are encouraged to look into the | | | | produce income until it is sold, and may even |
| quality and features of the various grading | | | | incur costs (e.g. for safe deposit box |
| services before deciding to purchase a coin | | | | storage) in the interim. |
| based solely on the grade given by a service. | | | | |
| The grading services came into being (PCGS | | | | Coin collecting trivia |
| being first) in an effort to bring more | | | | |
| safety to investors in rare coins. While they | | | | The first international convention for coin |
| have reduced the number of counterfeits | | | | collectors was held in August 15–18, |
| foisted upon unsuspecting investors, and have | | | | 1962, in Detroit, Michigan, sponsored by the |
| improved matters substantially, because of | | | | American Numismatic Association and the |
| the differences in market grading (which | | | | Canadian Numismatic Association. Attendance |
| determines the price) and technical grading, | | | | was estimated at 40,000. |
| the goal of creating a sight-unseen market | | | | |
| for coins remains somewhat elusive. | | | | The scientific study of coins is known as |
| | | | "numismatics". A numismatist may or may not |
| Damage of any sort, such as holes, edge | | | | be a coin collector. A coin collector may or |
| dents, repairs, cleaning, re-engraving or | | | | may not be a numismatist. |