This year, the Federal Reserve is set to officially phase out the penny, a coin that once held a prominent place in everyday transactions. While some may lament its departure, the end of the penny might spark a newfound interest in coin collecting among enthusiasts and novices alike. The process of collecting coins, or numismatics, offers a fascinating glimpse into history and culture, allowing individuals to explore the stories behind various coins and their unique features.
To help those interested in embarking on this rewarding hobby, former journalist and spokesperson for the Professional Numismatists Guild, Donn Pearlman, shares his insights on how to start a coin collection. Pearlman began his own journey at the age of eight when he received a shiny Lincoln cent. He later returned to the hobby, discovering a passion for numismatics that continues to enrich his life.
Start with Everyday Coins
Many new collectors find that the easiest way to begin is by examining everyday coins found in circulation. Pearlman emphasizes that understanding what to look for distinguishes a coin collection from a mere collection of coins. “There’s an old saying in numismatics: ‘Buy the book before the coin,’” he advises. For those focused on United States coins, he recommends acquiring the latest edition of A Guide Book of United States Coins, commonly referred to as “The Red Book” due to its distinctive cover.
Pearlman suggests that collectors choose coins that resonate personally with them. Whether it’s a historical figure or event depicted on a coin, selecting items of personal significance can enhance the collecting experience. For example, assembling a “type set” featuring one representative example of each denomination from a specific era can provide a meaningful focus for collectors. The good news is that starting a collection does not require a hefty investment; it is possible to begin with coins easily found in circulation for less than a dollar.
Understanding Value and Preservation
A common misconception among novice collectors is that age equates to value. Pearlman points out that many ancient Roman bronze coins can be priced at $50 or less, while a rare 1913 U.S. Liberty Head nickel may fetch millions due to its limited supply. The coin’s condition plays a crucial role in determining its worth; a worn Indian Head cent might be valued at a couple of dollars, while a pristine version could command thousands.
When handling and storing coins, it is vital to take precautions to maintain their condition. Pearlman advises against cleaning coins, as abrasive methods can significantly diminish their value. He recalls a poignant incident where a widow unintentionally reduced the worth of her late husband’s collection by attempting to clean the coins, resulting in a heartbreaking loss of value.
For storage, Pearlman suggests using home safes or bank safety deposit boxes. Coins graded by accredited institutions like the Professional Coin Grading Service come in tamper-resistant holders that protect against environmental damage. Avoid using PVC storage containers, as they can cause long-term harm to coins. When handling coins, always hold them by their edges to prevent leaving fingerprints.
Finding Reliable Dealers
As with any collecting pursuit, knowing reputable dealers is essential. Pearlman highlights a saying in the numismatic community: “If you don’t know coins, then you better know your coin dealer.” While technology has made it easier to research coins, it has also led to the emergence of scams targeting inexperienced collectors.
To avoid falling victim to counterfeit or overgraded items, Pearlman advises working only with dealers who are members of recognized professional organizations, such as the American Numismatic Association or the Professional Numismatists Guild. Checking the dealer’s rating with the local Better Business Bureau can also provide peace of mind.
Coin collecting can be an enriching hobby filled with learning and discovery. By following these guidelines from Pearlman, budding numismatists can embark on their journey with confidence, ready to explore the captivating world of coins and their history.
