Community Corner
The world of Numismatics
THE WORLD OF NUMISMATICS
By Joe Andrews
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Numismatics, or coin collecting, has been a popular pastime in the United States (and many other countries) for more than two hundred years. In order to understand the hobby, the novice collector must be familiar with the Sheldon grading scale which ranks the condition of all coins, from Good (AG3) to Perfect Mint State (MS70). Proof coins, which are specially manufactured , are in a separate category of their own. The United States Mint (with branches in Philadelphia, Denver, San Francisco, and West Point) currently creates, designs, and produces all of the coinage issued in the U.S.
The primary metals of most coins are: Copper, Silver, Nickel, and Gold. Most young collectors usually start with the basic Lincoln penny albums, and work their way up to other groups of coins. There are also carefully assembled “type” sets which consist of one coin of each denomination. This can be a very large set, when you consider the frequent design changes. Then, there are the “high rollers” who spend many thousands of dollars for key (rare) date coins. Some rarities have sold more than a million dollars each!
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A listing of useful reading material includes: The “Red Book”, by Kenneth Bressette (2014 Edition). “Coins” (magazine), and “Numismatics News” . These are are excellent publications with suggested retails prices for all grades and typesof coins, as well as a plethora of excellent articles.
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Selling or marketing your coins:
In order to get the fairest deal for your coins, you must understand how coins are sold and traded. Another suggestion is to learn what the daily price of bullion is. This can be found on the internet or your local newspaper (commodities section) Lately, gold has been fluctuating in the $ 1250 - $ 1350 range per ounce, and silver have been hovering in the $ 20 range per ounce. The United States discontinued mintage of regular issue silver coins in 1965. Gold coins were recalled in 1933. Many modern commemorative and bullion coins are minted in gold, silver, and platinum metals of different weights.
Review this list of potential outlets for buying and selling coins.
1. Large national coin dealers – Many of these dealers are found on the Internet or in magazine ads. You can obtain pricing information; however, these long distance outfits are far away which limits examination of the actual coins which might interest you.
2. Local coin dealers and coin shows - This is an ideal situation, as you get to know the dealer, and you can view the merchandise. It is best to check their Better Business Bureau ratins. Most dealers are honest and reputable. A word of caution, however, DO NOT WALK IN TO A COIN SHOP OR A COIN SHOW WITHOUT HAVING A GOOD IDEA OF WHAT YOUR COINS ARE WORTH! A good suggestion to “shop around”, and compare offers. Remember, a graded or certified coin (NGC or PCGS) can be researched and an accurate value determined. These are called “slabbed” coins.
3. Auction houses: Millions of dollars worth of coins are sold every year via the “live” auction route. This is especially true of the rarities. It is best to understand terms such as “Consignment” , “Hammer Price”, and “Reserve Bids”. One advantage of a “live” auction is that you are able to view the lots or sets of coins which will be sold (prior to the actual bidding). E-Bay (The on line auction site) has been successful for many people. Take the time to familiarize yourself with the mechanics and the bidding procedures of this internet site.
4. Mail - away gold buyers: Yikes! This is a sure – fire to lose money! The ads of TV are very tempting. You fill up an envelope with gold jewelry or gold coins, and send it off to some far company, which promises to give you a
“fair price” for your metal, and your check within a few weeks. Really now? If it is too good to be true, it is!
5. Hotel Buyers - It sure sounds good! Those large sized newspapers ads. The fancy local area hotel. The promises of “top prices” paid. When the dust settles, you are lucky to get 30 cents on the dollar! After the company organizing these hotel “shows” leaves town, you are out of luck. Advice – stay away for these folks!
6. Miscellaneous: Pawn Shops and Jewelry stores are not the best place to sell coins. These outfits are usually not certified or qualified coin dealers. You will be fortunate to be paid the regular bullion price for the metal content. Most jewelry shops specialize in rings, bracelets, earrings, necklaces, etc. Pawn shops can be useful when you need to obtain a short term loan, or you are looking for an unclaimed item which has been reduced in price..
