Interest in Coin Collecting Waning

I haven't been to a coin show in about a year. I can't remember when I last visited a coin shop either. I've read in different venues that interest in the hobby is waning, and some alarm has been raised considering the collections we have will be worth only what new generations decide in the future. I think educating others, especially youth, is a terrific and effective thing to do. But creating a lesson, finding somewhere to do it, and facilitating everything seems like a tremendous effort not many are willing to carry out. My own interest is lacking at this point, so I can't even imagine inspiring others.

One cheap endeavor I always saw at the Long Beach Coin Expo was a treasure hunt and other boring activities for kids. I believe children were supposed to get a world coin from different dealers, or some such trivial task. Suffice it to say, I've never seen many children participating in these activities. The stamp area had even worse turnout.

Others may have proposed this idea elsewhere, but I believe the US Mint should create and release random error coins into circulation, intentionally. Imagine a doubled-die obverse 2017 cent akin to the 1955 DDO cent where the date is clearly doubled. Now imagine low-mintage errors like this were released each year!

Nothing would attract more interest and potential collectors than the possibility of finding an interesting and highly collectible error coin in circulation. Various errors could be released throughout the year, with different mintages like 100 to 10,000 coins. A lot of research would be carried out on all the errors, kids would find it interesting and worthwhile, and collectors would have more coins to hunt for. It seems like just the ingredients our hobby needs.

It would actually be a misnomer to label such coins as errors. If the Mint starting releasing these kinds of coins, I believe they would be called varieties, since they were not made in error but intentionally, and they offer alternative versions (or varieties) of normal coins.


In any case, I don't think there's a better and simpler way to stimulate interest in our hobby than this. We all have our pipedreams I guess.

How does one become interested in the hobby?

This question could be rephrased in different ways. Consider the following: When does one become interested in the hobby? Or, How does someone become engaged in the hobby? Or maybe, What causes the coin collecting bug? In other words, what I'm trying to get at is that there is something that specifically occurs to incite one to start collecting coins in a serious manner. I had a small collection of coins many years ago, and I might have peered at them from time to time, but one day when I was older I became aware for the first time that I was enamored by coins. This realization might come about over a period of weeks or even months, one might argue. I think for me it was at most the former, ie weeks.

I began selling some coins my grandfather gave me on eBay. I couldn't believe how fast and how much my coins were selling for in comparison to other household items I had listed. What really sparked my interest was the fact that US coins were composed of a silver alloy in the past. I couldn't believe it! And this lasted up until the mid and late 1960s. I quickly thought of all the silver coins that may have graced my hands, without me knowing it. I had an old Red Book and studied the price guide somewhat, moved on to current magazines at the book store, and then purchased a whole slew of books to feed my growing appetite for coins! The rest is history, as they say.

There also came a point where I knew this hobby would be lifelong. That perhaps took a little longer to come forth in my mind but only because I was so busy learning and collecting coins! So, if you haven't started collecting coins with a passion, I suggest you give it a try. The easiest way might be to read a beginner's guide, like Alan Hubert's book (I forgot the name), a Dummies/Idiots guide, and so on. There's a cliché in the hobby that needs to be stated once again: Buy the book before the coin (or something like that). This is very sound advice. I want to emphasize that you should buy dozens of books because I still make mistakes occasionally when I'm out there collecting. In any case, depending on your personality type, the spark that gets you going might be a book, friend, family member, club, or the internet. Whatever it is, get going and have fun! If you've read this far, please share and let me know what got you interested in coins. Thanks.

Coin Collecting Can Be Affordable!

You may have read or heard the common remark that while coin collecting used to be the “hobby of kings,” it is now the “king of hobbies.” This is quite true. You can have a meager or massive budget for collecting, but it doesn’t really matter. Sometimes you’ll find that you aren’t spending much or anything on coins, but instead you’re just reading about them. There’s so much to learn about coins, areas to master, history to explore, that it’s easy to see why there’s a strong following behind this hobby.

Here are some ideas for the frugal collector:

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            - Bank roll hunting: Go to your local bank and search through coins. If you find a collectible coin worth keeping—an error, old denomination, or proof coin perhaps—then all you pay is face value for it.

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             - Flea markets: You can spot great deals if you’re knowledgeable. Since the hobby covers so much, sometimes you will run into coins that you’re unfamiliar with. I would suggest to use caution in these cases and only make a purchase if it’s under 20 or 30 dollars. Better yet, bring your phone and do a quick google or ebay search of the coin to see what it’s worth. A Redbook price guide is also nice to have while out treasure hunting.

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              - Study: Become more informed about some area of numismatics and then cherrypick people selling coins that you know more about. Become an expert!

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              - Ebay: I regularly look on ebay for “ending soonest” coin auctions and I also occasionally check “newly listed” coins under the “buy it now” option. You never know what’s up for sale on ebay.

These are some of my ideas. Let me know if you have any other ideas! I would like to add that not only is coin collecting affordable, you can make a profit from engaging in the hobby! Most if not all of my collection was acquired with money I made from selling coins. Some people do even better and make a living selling coins! 

Thoughts on Teaching and Numismatics

While you can find lesson ideas for the subject of numismatics online elsewhere (e.g., try the American Numismatic Association's (ANA) website), I want to throw out a few things I'm doing and discuss the importance of education. Education is a huge part of the ANA, by the way, but so much can be done by us rank-and-file hobbyists to increase interest. 

I've read about non-professional educators (i.e., non-certified teachers, layman, etc.) who visit schools to teach kids about some area of coin collecting. It doesn't take any specific skills or knowledge to spread knowledge you're passionate about, but it would definitely help if you put a lot of thought into the presentation. With teaching, I've found that the more planning that is done, the more smoothly it goes. Think everything through, try to engage people, and most of all make it fun! 

We all talk with someone or a few people from time to time about coins and our interests, but in the teacher-student setting the information is more top-down, and directed towards one way. The instructor's enthusiasm is key, but also be mindful that some of the excitement is self-generated in the students. In other words, the subject will likely be interesting to them regardless of its delivery. So I try to include a lot of details and practical information to students, and some will stick with them, some wont. Just focus on what you want them to know, and most likely your enthusiasm will shine through everything because of your devotion to the hobby. 

A very dedicated enthusiast, of any field, wants to give back and get others involved in the same thing. This is a common notion you'll probably hear in conversations with numismatic educators. I also think they--or should I say, we--try to educate others, in any way possible, about numismatics because this might lead to more involvement, excitement, more demand, and of course stronger returns on our precious coin and related investments. I believe this fiduciary element is a part of educating others about the hobby. Besides the sheer joy of involving oneself in the hobby, it's hard to grow as a collector without considering investment potential, money wasted, short-term profits, and other financial aspects.  We are after all dealing with money!

Anyhow, I've done a few short activities with small classes of primary school students. For instance, today I introduced them to circulating coinage from Great Britain and the European Union. Before they completed a instructional paragraph or two about a hobby of their own, I told them about my coin collecting interest and let them hold several coins. It helped having an atlas because the students mostly had no idea where England and Europe are. Hands-on activities are useful in instruction, especially with coins that are meant to be circulated, because they engage people and more sense stimulation helps with learning new things. Coins are the perfect visual aides when talking about ways to collect coins, historical events, etc., as well. 

I am planning on carrying out some classes at the community level for the city of Irvine in February. I have completed a lengthy outline for the two-hour class, which will be completed after two consecutive Sundays. There is so much I want to cover for this introductory class on coin collecting. However, I will focus on three areas: collecting/organizing coins, buying, and selling. There is much to consider among these three areas, so I have to figure out what to emphasize, trim, and omit in order to leave the student with the inspiration and confidence to go about their own collecting ways. I may not be an expert with all the answers, but perhaps I can get others started on this endeavor. The world of coin collecting awaits.... 

Why Collect Coins?

Many people may view coins only as small pieces of metal used to buy things. And in some sense, this view is accurate. However, such an observation overlooks history or the production and use of coinage over time. For instance, it is one thing to read about the Civil War; it is an entirely different thing to hold a two-cent coin minted in this period and wonder how it ever got to you. Or consider owning a cent re-struck from the original dies of an 1861 Confederate Cent (12 were first struck, so they are very rare and expensive; in 1873 75 were re-struck; in 1961 thousands were re-struck from broken dies, aka Bashlow re-strikes). Coins are tangible pieces of our past. Thankfully, many coins from the past exist today in collectible condition because of careful treatment, or they may have sat undisturbed for long periods of time by accident.

People today marvel at both historic and more recent coins for a plethora of reasons. Coins are often quite small, but their artistic designs are usually well thought-out and implemented. In the United States, some of our coins like the Mercury dime (aka Liberty Head dime), Walking Liberty half dollar, or Saint-Guadens gold coin are thought by many to be the best looking coins in all of history. But unfortunately, you probably won't learn about these pieces in an art history class.

Besides artistic merits, collectors also prize the unique aging characteristics of coins. If coins were not abrasively cleaned in the past, they tone gradually and can take on many pleasing qualities like blue, purple, or rainbow toning. With proper care, coins can also retain much or just about all of their original color through long periods of time. Some collectors favor toned coins, while others may prefer a brilliant, blast-white effect that is seen on untoned coins (usually from quick, restorative dipping).

Collectors ideally take great pleasure from their coins, studying, organizing and so on. But it seems that hobbyists also eventually learn how to make better purchases and sales. Buying and selling coins is key in the hobby, and much joy can be derived from this aspect. Most people have to temper their interests and make smart buys because their funds are limited, so treasure hunting or searching for bargains is typical. Often you will find that you get less for coins you sell than what you paid for them, but you can always learn to be a better investor--it just takes a little hard work. With some specific and general knowledge, you can spot bargains and make profit in the hobby, as many people do.

Coin collecting is an interesting and fulfilling hobby. You can dwell on the small collection you have, investigating the origins and history of a coin. You can try to increase your collection by smart buying and selling, or even deal in coins to make a living. I suggest one thing: have fun! Do what makes you happy and see where that leads you.

Common Coins and Professional Grading

Sometimes dealers get special deals with the grading companies because they send coins in large quantities to get graded. It might be smart in these cases to get modern, high mintage coins that are very common graded because 1) it's cheaper than if a collector sent it in, and 2) such dealers are hoping to get high grades for their coins--which is when they are hoping to cash in from a coin achieving a high, more rare condition (aka condition rarity).

Collectors, at least in the United States, are definitely very concerned with the condition or grade of a coin. But I think there's a point where this concern is overblown. There are many cases where very common coins, like Silver American Eagles or recent circulating coins get perfect grades from a company and are sold at auction for hundreds if not thousands of dollars. I don't think condition or grade rarity is as appealing, in the short or long term, as coins that were made in smaller numbers (aka mintage rarities).

It is definitely better to have a hundred year old coin in the highest condition you can afford, but paying a tremendous amount for more recent coins in top-notch condition might be unwise. First, keep in mind that coins minted more recently are more likely to have a higher quality and number of coins in top grades. For example, just look at the quality of modern proof sets or American Silver Eagles. All of these coins seem to be at a minimum MS65 or PF65 right out of the factory. This wasn't always the case with our coins several decades ago. Lastly, most collectors don't bother sending in common coins for grading, so maybe sometime in the future when they do feel more compelled to send them in, a greater number of specific coins will have perfect or high grades--and then the prices of these once condition rarities will come falling down.

One last thing to consider is the grading of world coins. On ebay you will often see modern, common world coins professionally graded and selling for high prices. The seller will explain that these are scarce or rare coins because so few are graded at a perfect or near perfect grade. However, this fact doesn't make them rare and desirable. The top grading companies are located in the United States and collectors in most other countries, if not all of them, are probably indifferent or opposed to encapsulating and grading their coins. So in essence, collectors around the world have tons of these high grade coins as well, which makes these ebay coins and their high prices a scam. Don't fall for it.

Keep in mind that if a coin is common but professionally graded and selling at a bargain price, it might be desirable for you to purchase it. Coin collecting is not just about investment, but it's also about the hunt and collecting what makes you happy. I have a lot of coins I don't plan to sell or make a profit from but are just fascinating to me.

Finding Silver Coins

Silver coins are out there. Some you will find that cost next to nothing or at bargain prices, others you have to be careful not to pay too much for. I will cover good sources for silver coins below, but always be mindful of what the spot price of silver is--ie the current value of one troy ounce of silver. The websites coinflation.com and Kitco.com are excellent resources for tracking the prices of silver and bullion values of coins. Most countries stopped including silver in their circulating coins around the 1960s, however Mexico is the only country today that still mints silver alloy coins in some of their larger denomination coins.

1) Check your change! It probably won't happen often, but you can still find a silver coin in change you receive when buying something with cash. US coins that sometimes still circulate out there and that have silver in them are the following:
   
     a. Pre-1965 dimes, quarters, half dollars, and dollar coins. That is to say, any of these denominations from 1964 and further back in time. Each coin is 90% silver. A simple way to look, especially if your eyes are bad, is to check the edge of each coin where the reeding is. If you see a brown, copper-colored band around the edge, it's clad coinage that has no silver in it.

     b. Half dollars from 1965 to 1970. Kennedy half dollars from 1965 to 1969 are 40% silver. The 1970 coin is silver as well but was made only for collector mint and proof sets, so you probably won't find these circulating.

     c. Jefferson nickels from 1942 to 1945. These war-time nickels have 35% silver content. You can easily identify them because the mint mark is directly above the building Monticello on the reverse. Usually you would find a smaller mint mark on Jefferson nickels on the obverse or on the side of the building on the reverse.

2) Search bank rolls for US silver coins. Sometimes certain banks do not offer coins in rolls, or perhaps only quarter rolls. You have to do some footwork and see where you can get the coin rolls you want. Of course, you probably want to be a member of the bank you visit or you might run into fees or discourteous bank tellers. It's harder these days to find silver coins from roll searching, but there are plenty of stories out there that tell you otherwise. Sometimes ignorant family members of a coin collector turn in change they find, and their silver coins go through a coin counting machine or straight to the bank.

3) Find foreign silver coins. When you go to flea markets, especially ones for antiques and collectibles, you will often see foreign coins in dishes or bags for sale. From some experience and having a little knowledge, you can quickly spot foreign silver coins. Although you'll run into a lot of base metal coins that are silver in color, silver coins usually stand out. They have a brighter, almost white color. The element silver reflects light better that other metals used in coins. Coins are usually tarnished and worn down, but comparitively the sheen of silver stands out. The more coins you handle, the more you will become aware of this quality.
   More importantly, you have to study individual countries and what denominations and periods of time these coins had silver in them. For example, Canadian coins are 80% silver before 1968, and further back in the 20th century and into the 19th century they were sterling. It's definitely hard to spot silver coins that are less than 50 or 60% silver, so study a Krause catalogue of world coins or visit a coin shop to become more familiar with them. By the way, a coin alloy of metal that is less than 50% silver is known as billon. For instance, Mexico's Peso coin from 1957 to 1967 is 10% silver. Further back, the Peso was 30%, 50%, 72%, and then 80% silver.

4) Coin shops and other dealers. You can find plenty of good deals at your local coin shop, or on ebay or some other online source. With online buying, remember to factor in shipping costs if there are any. And at shops, you sometimes have taxes to deal with. I have found that coin shows can beat coin shop prices. There's a lot of competition at shows and because there's a high volume of customers, some dealers will offer silver coins and bullion at phenomenal prices. Plus, you won't typically run into paying taxes here. As stated before, know what the silver spot price is. If you are interested in buying US pre-1965 silver coins, check the website coinflation.com to see what the bullion value is for the coins you're looking for.
    If you lack access to the Internet, but you have price guides and an idea of what one ounce of silver is going for, know how to calculate bullion values of coins. In the price guides, they should give the ASW--actual silver weight--of the coin in ounces. Multiply this weight by the spot price and you will have the bullion value of a coin. For example, a silver US quarter's ASW is .1808 oz. Let's say silver is around 22 dollars for an ounce. 22 multiplied by .1808 gives you about $3.98 for a quarter. Go with the dealer that sells closer to that value for each quarter. But remember there's always a small markup for silver coins and bullion. Sometimes buying from other collectors, rather than dealers, reduces that markup.
    One last thing. Look for bags of foreign coins for sale online and sometimes at flea markets that seem like they haven't been searched through adequately. If you see dollar and two dollar coins from Canada or Austrailia, for example, there also might be silver goodies in there. Large denomination coins that currently circulate in other countries can be sold to dealers and other collectors, and silver coins are even easier to sell.  

That about covers a lot of what's out there. Hope you made it through all that info! Good luck out there!