Getting Started in Coin Collecting

Coin collecting is often called the hobby of kings.  For centuries people have collected coins for fun and profit.  It is also a way of saving money.  There are several types of coins to collect... new mint sets, foreign coins, circulating coins such as state quarters or presidential dollars, numismatic or rare coins, commemorative/rounds, barter medallions, and bullion coins such as American Eagles which are valued for their gold or silver content.

All of these are great ways to collect coins and over time you will generally gravitate towards a certain type of coin collecting.  I'm just starting out and so I'm focusing on coins in circulation, the dollars and quarters and trying to find pre-1964 US coins with a 90% silver content... sometimes referred to as "junk silver."  At the bank the other day, I got some shiny new Abe Lincoln dollar coins for a buck each.  See your local bank teller and ask to see what they have. I also went through all my moms change jars and got a bunch of state quarters and paid a quarter each. I picked up some coin collecting folders at Half Price Books that I'm filling up.  Let me tell you, getting the coins into those darn holes is not an easy task!

For those interested in collecting numismatic coins, a good place to start on a budget is with the Morgan Silver Dollars or peace dollars. Gold bugs go for the Double Eagles and St. Gaudens.  Find a reputable dealer for gold and rare coins to be safe.  APMEX Gold and Silver is good and Shayne McGuire, author of Hard Money also recommends Austin Rare Coins, a reputable dealer in Austin, Texas.  Also, you should become familiar with coin grades which can range from AG-3 to MS-70 (MS = mint state).  Check your local Borders bargain section for what is commonly known as the red book for $3.99 for last years book.  It will give you the basics and is updated yearly so if you want the current edition it is about $15.

Bullion coins are very popular and you can buy coins in different weights from different countries.  The US American Eagles are very popular as are Canadian Maple Leafs, Chinese Pandas and coins from countries such as Australia, South Africa, and others.  The Eagles come in weights of 1/10, 1/2 and 1 oz and the larger the coin, the less markup you pay so save up for that one ouncer. I am also just dying to get my paws on some Austrian Philharmonic Coins... but alas, I'm broke now and working my debt snowball so those beautiful gold coins will have to wait.