Coin Collecting Terms: Glossary of Coin Vocabulary
Tuesday, July 14, 2009
Like any specialized hobby or discipline, the field of coin collecting has a set
of vocabulary all its own. For new collectors, all these special terms can be a
bit daunting. But with a few basics, anyone can be well on the way to enjoying coin
collection. Below is a glossary of frequently used coin collecting terms.
Types of coins
Despite the seemingly endless number of coins available to collectors, all coins
fall into one of three broad categories.
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Business Strike Coins: These are coins that are minted to be used as currency.
Because they are circulated, business strike coins are usually made from metal alloys.
Although these alloys are more resistant to wear, business strike coins usually
appear quite worn after only a few years.
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Commemoratives: Designed and produced entirely for collection, commemorative coins
are generally highly detailed and artistic. Commemorative coins are usually minted
from precious metals, so they are popular not only among numismatists, but also
investors.
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Error Coins: These coins contain errors or flaws from the minting process. Error
coins can occur in either business strike or commemorative coins. The relative rarity
of error coins can make them extremely valuable to collectors.
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Proof Coins: Similar in design to business strikes, these coins are struck multiple
times during the minting process, and usually at slower speeds with a higher striking
pressure, which produces a very sharp and detailed mirror-like look.
The Parts of a Coin
Collectors use special names to describe the different parts of a coin. This vocabulary
makes it possible for people worldwide to discuss coins using the same terminology.
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Obverse: This is considered the “front” side of the coin. It is the side that has
the name of the country on it. In many countries, the obverse also features a bust
of a government leader.
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Reverse: This is the “back” of the coin. For commemorative coins, the special
design is generally on the reverse side.
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Rim: The narrow raised edge that runs around both faces of the coin, the rim makes
stacking coins easier and protects the design from wear.
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Inscription: The writing on a coin that includes important information like country
of origin, denomination, and mint location. Sometimes also called a legend, an inscription
might also include a motto.
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Relief: Any area that is raised with part of a coin’s design is part of its relief.
In contrast, the flat areas, without design, are known as fields. Some coins are
specially minted in Ultra High Relief, for added dimension and detail.
Factors That Influence A Coin’s Price
Two primary factors influence the price of coins: grade and rarity. Although some
collectors confuse the two, they are independent of one another.
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Grade: A coin’s grade is based on its condition. The higher a coin’s grade, the
more it will be worth. Coins are graded from Poor (no visible details except the
date and lettering) to Proof (nearly flawless). Sometimes also called “Mint State,”
Proof coins have fine details and no wear.
Find out more about a coin's grade.
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Rarity: When fewer coins are minted, each coin becomes more valuable, simply because
the coin is scarcer. Coins that are more difficult to find, or that were minted
in limited numbers generally fetch a higher price from collectors.
The shared terminology of coin collecting allows gold and silver coin collectors to communicate about their
hobby with people all over the world. With a little practice, new collectors can
master the vocabulary of this challenging and rewarding discipline.
This information is provided for general reference purposes and does not constitute
professional advice. For detailed coin collecting or investing information, please
consult with a professional expert.
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