5 Reasons to Buy and Collect Certified and Graded Coins

by Robert L Taylor, JD

Why should a coin collector and investor buy and collect professionally graded and certified coins? Commonly called “slabs”, they are housed in a protective plastic holder. There are many companies – over a dozen are less than 2 years old – which will put your coin in a slab after Certifying that it is Authentic, and assigning a Grade to the coin. The first reason for buying and collecting Certified and Graded Coins applies to all of these companies. However, the most important reasons apply only to the Top Four companies: PCGS, NGC, ANACS, and ICG.

Reason No 1. To Protect Your Coin from Damage.
Visible Damage, which includes anything from finger prints/oils to being stepped on. More importantly, Environmental Damage, including such things as exposure to the air, or the wrong kind of air, chemicals in the air, and touching other objects (e.g.: certain plastics, liquids, food) and other coins, which will change the appearance and even structure of the coin. Damage causes loss of Value, which means Your Investment. A slab is an air tight container, and its purpose is Protection.

Reason No 2. To Establish Authenticity.
You want and need to know that your coin is not only the Real thing, but that it has not been altered (changing a mint mark - fraud) or changed, for example by cleaning, polishing, changing the appearance or surface of the coin, in any way that would render your coin unfit to collect. If it is Unfit to Collect, there won’t be many Buyers or Sellers. Many coins graded by lesser companies end up getting Rejected by one of the Top Four for these reasons.

Reason No 3. To Establish Identity.
Is that 1909 Lincoln penny a VDB? Did you overlook the “S” mint mark. Is it a Type 1 or Type 2? These little identifying marks can mean the difference between a $20 coin and one worth $35,000. We all make mistakes and overlook or miss, mint marks, details, and certain other identifying factors which make up “Varities” of each coin. It is the professional’s duty to look for, and establish these things to determine a coin’s true Identity.

Reason No 4. To Establish the Coin’s Grade.
A coin’s Grade is what determines its Value. You want Good Value when you Buy the coin. You want to get what you pay for (or more) and not get cheated. When you get ready to Sell or Upgrade, you want to get the most for your coin. You have to Know what your coin is Worth! The Grade is always an Issue when Buying and Selling a Collectible Coin. Having the coin Professionally Certified and Graded virtually eliminates this Issue, and the Arguments. This is Your Neutral Third Party.

Reason No 5. Trust and Credibility.
The Top Four companies are Consistent, Reliable and Trustworthy. They have Established and Respected Reputations. Their Standards are the Highest and the Best. You are taking a Risk when buying a certified and graded coin from any other company. When you Sell a Certified and Graded Coin, it will speak for you. The reputation of the Grading Company will firmly establish the Grade of the Coin. This translates into the Value or Worth of the Coin.

It is possible to buy and sell a coin that is Certified and Graded by one of the Top Four, sight unseen, and know exactly what you are getting. From a description of the coin (e.g.: 1903 O, MS66, NGC, Morgan #034), you know what you are buying, and what to expect. It always helps to have a little description of its appearance, such as “white hot” or “slight reverse toning”, since there is one limitation to selling a Certified and Graded coin sight unseen: It is still possible to buy an ugly coin. But that is why we have scanners, fax and email.

Therefore, as a Coin Collector and Investor, always collect Certified and Graded coins by one of the Top Four. It is the most reasonable way to verify authenticity and identity of every coin in your collection, as well as to establish a reliable Value. Every source of prices for any coin, be it a yearly book, magazine, a weekly or monthly newsprint; all base their prices on the Grading Standards of the Top Four grading companies, which strictly follow the ANA (American Numismatic Association) guidelines. If the Grade of your coin does not measure up to these Standards, then you are only guessing at the Value.

Collect Rare Coins - a Dummies Guide

Most people are born collectors. Whether its stamps, baseball cards, soft toys or even vintage automobiles, you can bet that if its been made, then its been turned into someone's collection. Of course some items are more valuable than others, making the act of collecting them more attractive to people. These items may start off life as collector's items, but very often they begin life as inexpensive commodity items that become increasingly more valuable as they get older and rarer. So it is with rare coins. Most rare coins were, in their day, were readily available but as they got older they fell out of circulation, or the materials they were made from became more valuable - like gold.

Today, if you like to collect rare coins, you will find that this particular hobby, can be rewarding both in terms of satisfaction and in a monetary sense as well.

Don't think, however, that you have to be rich to collect rare coins. New types of coins are made every year and some are re-introduced years after they originally appeared, so focusing on a particular time period and location is important. Like any hobby, researching the background and educating yourself to the history and significance of the items in your collection can greatly add to your satisfaction. You should make use of printer material as well as the internet to research your coin collection, and this can help you decide which coins to collect, and also the best places to obtain them.

You don't have to limit yourself to on-line resources either. There are many good coin publications such as Coin World or Coinage magazine which are written and produced by like-minded hobbyists and leading experts in the field. You should also seek out the help of local coin sellers, either shops, or if your budget allows, specialist dealers, or even auction houses.

Also, just like photography and many other hobbies, collecting rare coins has brought about the growth of many specialist coin collecting clubs and societies. Its worth checking your local Yellow Pages, or on-line directories to see if there is one near you, or why not start one. You will find that the contacts gained from like-minded collectors can greatly help you seek out those elusive items to that you are seeking. You may also be able to swap coins with fellow members, or even club together to buy particularly rare coins that you couldn't afford to buy as an individual.

Older coins are generally worth more, but if new coins are made of gold, for example, then they can be just as valuable as the antique ones. This is because gold has recently seen a surge in value and now exceeds $1000 an ounce. Coins such as Krugerrands, while not rare, are certainly very valuable items in today's marketplace since they are mad of solid gold.

When your collection is complete, if it can ever be complete, then you will want to show it off to its best advantage. You should take time to source attractive display materials such as folders or albums. You might want to consider displaying them in, say, a local museum or Government building if they are of particular interest.

Always keep your coins well cleaned, but do take care, not all materials are suitable for this task. You can usually clean them well by soaking them in vinegar or lemon juice. These remove dirt and grime but are non-abrasive so will not damage the surface. Afterwards, they should be air-dried or patted dry with a soft cloth. Only polish the if you can be absolutely certain that the surface will not be damaged. Some coins scratch very easily and a worn coin will sometimes be worth next to nothing.

So, there you have it, a few points to start you off on your new hobby. Collecting rare coins can be a very rewarding hobby. Not only can you teach yourself a lot about history and materials for example, but you can also end up with a very valuable as prized asset to boot.

What Is Collecting - Is It A Hobby Or An Obsession?

Image via WikipediaPeople collect, amass, store and hoard just about anything. Some are put up for display (like fine art), yet, others remain in attics and basement, sealed away forever. People collect just about anything including: marbles, coins, political memorabilia, cookie jars, autographs, sports memorabilia, jewelry, Pez dispensers, snow globes, stamps, vinyl records, sports cards, comic books, toys, ceramics, jewelry.... why the list is endless.

People have always collected something either as a hobby or an investment. In fact, one of the first American numismatists began collecting coins in 1817 and it was a collection of American cents from each year. But, coin collecting has a history going back to ancient times when the ancient Romans were interested in and collected Greek and Roman coins.

There have been many famous people who have collected one thing or another. It is reported that a certain U.S. attorney has amassed a collection of more than 200,000 railroad nails and a Russian countess collected bedpans that had previously belonged to rich and famous people. King Louis XIV of France thoroughly enjoyed his daily visit to the French Royal Coin Collection, noting that he could 'always find something new to learn.' In addition, actor Buddy Ebsen, who portrayed the loveable hillbilly Jed Clampett, was fond of collecting ancient coins. The flamboyant rock star Freddie Mercury, of the band Queen, was an avid stamp collector as a boy. Many famous musicians have huge vinyl record collections, including Peter Buck (R.E.M.), Peter Wolf (of the J. Geils Band), and Thurston Moore (Sonic Youth), just to name a few.

Many collecting hobbies have "sub genres." For instance, collecting vinyl records can be divided into any number of specific categories. One could collect specific genres of music (Big Band, Jazz, Classical, etc.) or be partial to a particular record label such as Capitol, Reprise, RCA, Columbia and many others. Some may also collect 45's, picture discs, record sleeves, colored vinyl records, picture discs....well, you get the idea. It is well known that famed pop artist Robert Crumb (who designed the famous album cover for Janis Joplin's "Cheap Thrills" LP) was keen on collecting 78 rpm records and had amassed quite a collection.

Maybe you know someone who collects Pez dispensers. They may have famous celebrities, cartoon characters, specific colored ones, and different years of release and so on. Comic book collectors could also collect a specific type of comic, like super heroes, Archie comics, adult comics, Disney comics or even black and white comics from years gone by.

But, exactly why do people collect? They could gain a measure of satisfaction and pleasure from simply displaying the objects they collect. Sometimes, it is the nostalgia bug that compels people to collect items from a specific era. It could be an item that is associated with their childhood, a famous person or a world famous event. Some collect because of the intrinsic value of an item, and the fact that the item may be desirable to others and can command a profit if they sold it. An item could also have a specific provenance that could compel interest.

Now, is collecting an obsession or some form of "pack rat fever?" The Webster's dictionary defines the word collect to mean "to gather (stamps, books etc.) for a hobby." A collectible is something "that can be collected, suitable for collections; as by a hobbyist-any class of old things, but, not antiques, that people collect as a hobby." It further states that a collector is "a person who collects stamps, books, etc. as a hobby." Products are also manufactured with "collectibility" in mind, such as "limited edition" items like vinyl records, coins, art prints or even cookie jars.

Moreover, the collectible's market has expanded in recent years and fueled by annual price guides, books on the subject, television shows, collectible conventions and Internet auction sites; the collectible's market is now a global phenomenon. There are also professionals who specialize in a certain market and they share their expertise and help to even value these collectibles. There is a science of sorts in how people "grade" certain collectibles (i.e., mint, excellent, fair etc.) and most of the time condition is paramount. All these elements drive the market and help create a desirability factor for specific products and items.

But, the one element missing from the dictionary definition of "collecting" is the drive and passion that people may have for whatever they collect. So let's go a few steps further with our definition of "collecting." Let's define it as: The art of acquiring items or products that you are specifically passionate about and want to retain, either for monetary gain or personal satisfaction. Let's explore this definition in detail.

Is there an art to collecting? There certainly is. One must know where to find exactly what it is that they are seeking. Let's assume you collect vinyl records. Is it best to place an advertisement in a trade publication, local or national newspaper, shop online, or pursue the rummage/garage sale methods? What about going to the "record conventions" that are held in major cities all over the country? Is that the best avenue to pursue? There is an art (some call it a science) to knowing where the best place is to find whatever collectible that you may be looking for.

Furthermore, in the dictionary definitions of collecting, a key term is missing, passion. There is a direct correlation to the drive and motivation a person feels and how successful they may be in acquiring their collectibles. This is a very important element, the enthusiasm a person has, the passion, is what makes whatever they may be collecting, an enjoyable experience. And, obviously the more they put into collecting, the more that they will get in return, not only in monetary terms, but, simply put, the more fun they will have pursuing their hobby.

So next time you shake you're your head at your spouse, friend or family member and call them a "pack rat," remember that they are not only passionate about what they are doing; but actually find a great deal of excitement and personal satisfaction in doing what they are doing. It is one of the most rewarding and pleasurable things a person can do.

Find Out Why Coin Collectors Love Three Cent Nickels

Shortly after the United States Civil War there were two different three cent pieces in circulation. You had silver three cent pieces and nickel three cent pieces. And during this post Civil War period, these three cent pieces were actually from silver and nickel. This article focuses on the three cent nickel.

Today in the United States we do not have many different kinds of coins in circulation. We have pennies, nickels, dimes, quarters, half dollars and dollar coins. But, previously in American history there were many more different denomination of coins in circulation. One of these coins were nickel three-cent pieces.

In 1865, however, the US Mint started to produce nickel versions of the three cent piece. These nickel three-cent pieces were 75% cooper and 25% nickel. During the 1880s very few of these nickel three-cent pieces were produced. And in 1889, the three-cent piece was discontinued.

Doesn't it seem wierd that the US Mint produced three cent pieces? Why did the United States Mint mint these us coins? The US Mint started producing the three cent piece in 1851. At first only the silver three-cent piece was produced. The silver three cent pieces were very thin coins which were produced solely to help make it easier to purchase postage stamps. The US postage stamp in 1851 was, you guessed it, 3 cents. Before 1851, these postage stamps were five cents, but the US government reduced the price to three cents.

Today the three-cent pieces are highly valued by US coin collectors and coin collectors around the globe. The three cent pieces in mint condition or in proof condition are worth the most money. During most of the production years of the three-cent piece, the Mint only minted 1,000 or less of these coins per year. Since there were so few of these coins minted, they are very rare making them highly sought after coin collectibles. There nickel three-cent pieces graded at proof-66 are at around $850.

Why are three cent nickels popular buys for coin collectors? Since only 1,000 or less of these coins were minted from 1851 through 1889, the three cent coins are very rare. Scarcity is what drives coin values. If you are trying to determine what a coin is worth, scarcity or rarity is the prime factor. In addition, the history of the three cent coin makes these coins popular too.

With the proof-66 three cent nickel going for roughly $850 due to the rarity of these nickel three cent pieces these are great buys for any us coins collector.

Coin Appraisals - Discover the Value of your Coins

Since you are a coin collector you are probably interested in discovering the value of your coins. Of course if you are an experience collector you already know how to find the value of your coin otherwise you should know that coins are valued according to certain conditions. If you are wondering what is the best way to go about evaluating your coin you should know that the best way would be to have a coin appraisal done by an expert in the field. Coin appraisals are essential if you want to know the real value of your coin collection.

Coin appraisals should always be performed by an expert, at least until you get the hang of it. A Good coin appraisal should inform you about the value of your different coins in your collection. The best way to go would be to have multiple coin appraisals done by different experts. The knowledge of each expert depends on is expertise in the coin collecting field. Coin appraisals are not an exact science so by having multiple done by various experts should give you excellent ideas of your coins value.

In my experience, the values of the coins you will get from those coin appraisals should be faire. For the most part these experts have been conduction coin appraisals for years and they usually have a vast knowledge of the coin grading system. They are fully aware of the various grading tactics that are usually used for different type of coins.

But I would highly suggest you gather as much information as possible about coin appraisals this would ensure in the long run that you are getting accurate information from those experts. Having as much knowledge as possible about coin appraisals would be very wise on your part, you would then be able to ascertain if you are being told of the current values of your coins according to the market. You should locate books on the matter to fully train yourself.

You should also look on the internet as there are many sources to gather information about coin appraisals. There are hundreds of site loaded with information about coin appraisals and grading techniques. Some of the information you will want to read about are the methods being used in grading the coins in collections. Being informed about the coin grading system is the best way to know if your coin appraisals are being done correctly.

The thing I would recommend the most is to have multiple coin appraisals done. You should always keep in mind that the knowledge of the expert can vary from one to another so by having multiple coin appraisals done you can have a good idea of the real value of your coin collection. Once you will have gathered as much information as possible you will be able to take a decision whether to sell or expand your collection.