COIN COLLECTING BASICS

Coin collecting can be a great hobby, provided some basics are understood first.  This article addressesproper handling, grading, and should that coin be slabbed.

Proper Handling:  Coin value is determined by both rarity and condition.  It is a good idea to protest your coins by proper handling.  The rules are simple.

Avoid handling your coins as much as possible, and when it is necessary, always hold the coin by the edge.  A small amount of abrasion can reduce the grade of the coin.  Also, no matter how well you wash, there is always something on your hands, which may discolor a beautiful coin.

Store your collection properly.  If you have plastic capsules that fit your coins, that is probably the best.  Soft coverings can be damaged, and keeping coins air tight is important.  The air contains contaminates that can damage your coins,

Always have your coins encased before speaking.  Small amounts of saliva can be the source of unsightly spots in the future.

Do not use envelopes, or any paper products, unless the paper is specifically manufactured for use with coins.  Paper is often made using sulfuric acid, which can seriously damage coins.

Never clean a coin!  Collectors prefer the natural look, and cleaned coins quickly lose value.  If you think it will not be noticed by an expert, you are mistaken.  The appearance of a coin made from pressing dies des not have those streaks associated with abrasion.  When magnified, coins tell the story of having been cleaned.  (This is written with the understanding ancient coins that were found buried in thick soil must be cleaned to even be able to tell which coin is there.  Ancient coins are the exception to the never clean rule.)

Grading:  Grading standards go from AG through Perfect.  If you are starting a serious collection, avoid the lower grades unless the coin is essentially unavailable or unaffordable in higher grades.  AG (about good), G (good), and VG (very good) all show excessive wear.  F (fine) and VF (very fine) are better, but still have a lot of wear.  EF or XF (extra fine) and AU (almost uncirculated) are lower end quality grades for very old coins.  BU (brilliant uncirculated) is the lowest grade of uncirculated and may have some scratches.  GEM is better.  The MS number is the mint state number, and is used to separate the grades of uncirculated coins.  MS 60 is BU, and MS 65 is GEM.  The best coins are MS 70, considered perfect.

Grading is subjective, and even experts can disagree.  A nick in the rim or major scratch can alter the grade.  Do not just look at those things your book says will determine the grade.  A good rule is to leave the grading to the experts, and if you disagree, get a second opinion.  If you think a coin is over graded, look for another that you consider fairly graded.

Slabbing Coins:   There are many slabbing services that will grade your coin and seal it in a plastic holder with a Certificate of Authenticity.  Unfortunately, many slabbers are less than skilled in determining the grade of a coin, and a few may be dishonest.  The first thing you should consider is the reputation of a slabber.  The ANA recognizes NGC and PCGS is another well recognized by collectors.  The first thing you should check is that the slab is sealed.  If is is not, the COA is worthless, since the coin could have been swapped.

The slabbing services charge, but the coin is still the same coin.  Unless you are buying and feel better with a professional opinion, or selling and hope to establish credibility for the grade you are claiming, why would you slab a coin?  But if you must, use a quality service.  It is worth whatever little extra you pay when you decide to sell.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.