How To Collect Coins For Beginners: Coin Collecting 101
How To Collect Coins For Beginners
Your complete guide to starting a rewarding coin collection with confidence and knowledge
Coin collecting is a rewarding hobby that you can enjoy at many different price points (including free!) It has a rich history as a popular hobby for thousands of years and can provide a lifetime of enjoyment. Coin collecting is a safe and educational hobby for people of all ages.
New collectors may feel overwhelmed with all of the different coin types and options available. This comprehensive guide will help you navigate your journey as a beginning coin collector.
Table of Contents
Coin Collecting Basics for Beginners
Before you start your coin collecting journey, here are some foundational concepts to understand.
What is Numismatics?
The fancy term for studying or collecting coins is numismatics. You may hear an experienced coin expert be referred to as a "numismatist."
Related Collecting Hobbies
- Notaphily: collecting banknotes (paper money)
- Philately: collecting postage stamps
- Exonumia: tokens, medals, and money-like items
Learning how to properly describe coins and coin collecting can go a long way towards being taken seriously at the local coin shop or coin club.
Professional Tip
Understanding proper terminology is your first step toward being respected in the numismatic community. It shows dealers and collectors that you're serious about the hobby and helps you communicate effectively about your collection goals.
Essential Terminology
Here are the most important terms you need to know as a beginning collector:
Circulated
A coin that has been used as intended, to buy things. Circulated coins show different levels of wear, with prices to match.
Uncirculated
A coin that has never left the bank. With modern coins, it is one that has never left the Mint. Also known as Mint State.
Grade
Coins are graded on a scale of 1 to 70. A score of 1 (Poor) means nearly unidentifiable. A score of 70 (Mint State 70) signifies a "perfect" coin.
Graded/Slabbed
A coin submitted to a grading company (NGC or PCGS) and sealed in a tamper-proof plastic shell known as a "slab."
Key Date
A coin that, due to rarity, is the most expensive and difficult of a series to acquire.
Obverse/Reverse
The obverse is the "heads" side (front), while the reverse is the "tails" side (back) of the coin.
Date Set
Contains one coin from every year that a coin was made. The mint that struck the coin doesn't matter.
Type Set
Refers to the different designs that have appeared on a certain denomination coin. Dates and mints don't matter.
Coin Edges
The edge is called the "third side" of the coin. Common types include Plain (simple), Reeded (vertical lines), Lettered (writing), and Decorated (stars or designs).
8 Expert Tips for Getting Started
Follow these proven strategies to set yourself up for success in building your first coin collection.
1Pick Something That Speaks To You
If you have started thinking about collecting coins, the first step you take is the most important one of all: Choose a coin set that you find really interesting. That's the first lesson in Coin Collecting 101.
Popular Collection Types
- Travel coins from countries visited
- Birth year or anniversary commemoratives
- Wildlife and nature themed coins
- Historical period collections
- Precious metal bullion coins
Budget-Friendly Starters
- Lincoln cent sets (can be built for free!)
- Washington quarters (100+ designs available)
- Buffalo nickels
- Pre-1965 Roosevelt silver dimes
- Jefferson nickels with silver "war nickels"
There are many ways to collect coins besides the traditional sets. Some people collect coins from different countries they have visited, as reminders of trips or special occasions. Others collect special proof versions of coins minted in their birth year or marriage year.
Avoid the "Get Rich Quick" Mindset
However, if you start buying coins hoping to resell them for a quick profit, you're gonna have a bad time. Most coins have to be held for years before they provide a good return. Treating coin collecting as a job instead of a relaxing hobby is a certain way to kill your enthusiasm.
It's a good idea to pick something inexpensive for your first coin set to learn the basics. The coin set with the best "enjoyment per dollar" is a Lincoln cent set. You can build a circulated grade Lincoln Memorial cent set for free by hunting through your pocket change.
With a little perseverance, you can have a popular coin collection without spending a buck! With just a little money, you can stretch your Lincoln cent collection back to the original "Wheat Ears" design (1909-1958).
2Start With A Short Date Range
Trying to build a complete run of a classic coin series for your first collection can be overwhelming. There is nothing wrong with having big plans, but it's best to narrow your focus at first, then expand from there.
A short set is a specific date range of coins that avoids the expensive key date coins. Short sets are built to include years that offer good strikes at an affordable price.
Popular Short Sets
- 1934-1938 Buffalo nickels (date and mint set)
- 1934-1945 Mercury dimes
- 1941-1947 Walking Liberty silver half dollars
- 1921 silver Morgan dollars
- 1922-1926 silver Peace dollars
Benefits of Short Sets
- Can be completed in reasonable time
- Provides sense of accomplishment
- Good foundation to expand collection
- Avoids most expensive key dates
- Teaches market knowledge efficiently
Expert Strategy
If your favorite coin isn't included in the popular short sets list, check online. There are short sets for nearly every coin ever minted! This approach helps you learn the market while building confidence and expertise.
3Pace Yourself
Going on a coin buying binge at a coin show, or in an online auction, is guaranteed to cause buyer's remorse. A time-tested way to stop yourself from going on an impulsive coin buying binge is to set a budget, and stick with it.
Budget Guidelines
- Set monthly or annual disposable income limits
- Consider each purchase carefully
- Ask: Is it a good price for the grade?
- Evaluate: Does it fit in your collection?
Flexibility Factor
- Don't let budget be a straight jacket
- If you see a great deal, consider it
- Sometimes opportunity requires quick action
- Balance discipline with opportunity
Set a monthly or even annual budget of disposable income for building your coin collection. This will help you carefully consider each coin purchase and avoid impulsive decisions that lead to regret.
4Learn How To Handle Your Coins With Care
One of the most important things to know when collecting coins is the damage your fingers can do to a coin. Proper handling is essential for preserving value and condition.
Critical Handling Rules
Always only pick up a coin by the edge. This should be on "page 1" of the Coin Collecting 101 syllabus! Also resist the urge to ever clean coins. Cleaning coins not only robs them of historical significance, but it can destroy their value.
Make sure that your coins don't slide around on top of each other or hit one another, as it reduces the grade (and value) of your coins.
Storage Solutions
- Cardboard Flips: Traditional square holders with coin-safe plastic windows
- Plastic Flips: Flexible clear plastic with info card pouches
- Pocket Sheets: Clear plastic sheets for binder storage
- Capsules: Hard, round plastic protectors for valuable coins
What NOT to Do
- Never clean coins with any substance
- Don't touch the face or back surfaces
- Avoid letting coins contact each other
- Don't store in non-archival materials
- Never use coins for practice handling
There are a number of ways to properly store your coins. Investing in quality storage materials protects your investment and maintains the coins' condition over time.
5Do a Little Research And Save a Lot
The most important thing you can do as a coin collector is know what a coin is worth. If you don't know what a coin is worth, you shouldn't be buying it.
Essential Resources
- The Red Book: "Guide Book of United States Coins" (annual)
- NGC Price Guides: Current market valuations
- PCGS Price Guides: Professional grading standards
- Coin World Magazine: Industry news and trends
- Numismatic News: Market analysis and education
Key Research Areas
- Mintage numbers and rarity
- Current market prices
- Grading standards and techniques
- Historical price trends
- Authentication markers
The first step to learning a coin's value is learning how rare it is. The rarer a coin is, the more valuable it tends to be. The Red Book should be your first purchase when you start collecting coins.
Understanding Grading
It is vital to know how to grade a coin. A misgrade of only one tier can affect the price of a coin tremendously. The Official American Numismatic Association Grading Standards shows specific areas to check on every U.S. coin.
Speaking of coin conventions, go to as many coin shows as you can, to see as many coins as you can. Compare what YOU think the grade should be, to what the SELLER says it is. Also, view certified/slabbed coins, and try to determine why they received the grade that they did.
6Be a Smart Shopper
Whether online or in person, choose who you buy your coins from wisely. Making informed purchasing decisions protects both your wallet and your collection quality.
Trusted Sources
- Professional Numismatics Guild (PNG) members
- Established local coin shops
- Reputable coin shows and conventions
- Certified online dealers with return policies
- Major auction houses with authentication
Red Flags to Avoid
- Dodgy websites with fake coins
- Dealers without proper credentials
- No return policy or guarantees
- Prices too good to be true
- Pressure tactics or time limits
Beware coins sold online, unless they are from a reputable company. Many purchases on dodgy websites turn out to be fake coins. It's best to trust a professional coin dealer or local coin show.
Building Relationships
Make the effort to visit several local coin shops to find one that you are comfortable with. Building relationships with reputable dealers can lead to better deals, early access to new inventory, and valuable advice as your collection grows.
For investors interested in precious metals beyond numismatic coins, consider exploring options to buy gold bullion or purchase silver coins as part of a diversified collecting strategy. Understanding current gold prices and silver market trends helps inform purchasing decisions for both numismatic and bullion collections.
7Join A Coin Club or Group
If there's a coin set you can collect, there's a group of people sharing a common interest in that coin. Many hobbyists exchange information about their favorite coin series on forums and social networks.
Online Communities
- American Numismatic Association (ANA) forums
- NGC and PCGS collector communities
- Specialized Facebook groups
- Reddit numismatic communities
- Discord collecting channels
Local Opportunities
- Local coin clubs and societies
- Coin shows and conventions
- Educational workshops and seminars
- Dealer presentations and talks
- Collector meetups and swaps
These groups may be the best places to learn the details of collecting the type of coin you are interested in. The online forums at ANA, NGC, and PCGS are all good places to connect with numismatists with similar interests.
Learning Benefits
Experienced collectors are often generous with their knowledge and willing to help newcomers avoid common mistakes. Community participation accelerates your learning curve and makes the hobby more enjoyable.
8One Final Tip: Take The Time To Enjoy Yourself
Don't be in a rush to complete your first coin collection. Going on a buying binge makes you more likely to make a poor purchase. Bide your time, and watch for rare coins at a good price.
The Joy of the Hunt
There's no feeling quite like getting a good deal on a nice coin. It's something you will remember every time you look at that coin. Remember, there's no time limit to finishing your collection.
Take your time, enjoy yourself, and welcome to the wonderful world of numismatics! The journey of building a collection should be as rewarding as the destination.
Celebrating Milestones
- Document your first significant purchase
- Track completion of short sets
- Share discoveries with fellow collectors
- Learn the stories behind your coins
Long-term Perspective
- Focus on quality over quantity
- Enjoy the research and learning process
- Build relationships in the community
- Consider the historical significance
Final Thoughts
Coin collecting offers a unique combination of history, artistry, and investment potential. Whether you're drawn to ancient civilizations, American history, or the intrinsic value of precious metals, there's a collecting path that will provide decades of enjoyment and education. Start with what interests you, learn continuously, and most importantly, have fun with your journey into numismatics!