Coin-Gallery Online - Principles of Coin Collecting

by Mitch Hight

There are as many ways to collect coins as there are coin collectors. Many collectors prefer only one example of each major type, while others dig deep into finding rare varieties of one particular type coin. From date sets to topical collections, one of the basic principles to follow is to create a meaningful collection. The idea of an organized, well-thought-out, purposeful and meaningful collection of rare coins is appreciated by all. The beauty of it all is that the specifics of what constitutes this collection is left entirely up to you! In addition to the most common methods of collecting by date or type set, many successful collectors have put together collections based on topics such as the olympics, astrological themes, animals, ships and well, you name it. The operative word here is "successful", because their collections met the criteria already mentioned. Now that you've decided upon an interesting set of coins to add to your cabinet, what is the next step?
Buy yourself some basic coin collecting books... and read them. One of the most common mistakes made by beginning collectors is to spend too much on their acquisitions in the initial excitement to grow their holdings up to a "respectable" level too quickly. The one rule that all successful purchasers of rare coins absolutely must follow is to "Buy the book before the coin."
We recommend the following titles for those wanting to get started in their collecting endeavors...

For anyone interested in U.S. coins, "A Guide Book of U.S. Coins", edited by Kenneth Bressett is an absolute must have.
For those interested in forming a collection of coins from all over the globe, Krause Publications prints "The Standard Catalog of World Coins" , one volume each from the 17th, 18th, 19th or 20th centuries.
For ancient coin enthusiasts, "Ancient Coin Collecting" by Wayne G. Sayles is a good way to start. This is the first of a six-volume set that covers a lot of ground from the beginning of coinage, classical Greek and Roman, up through the Romaion/Byzantine period.

Many other numismatic titles can be found in our Books and Periodicals section.
Create a budget and stick to it. Avoid the tendency to purchase on a whim. Don't buy something just because it's being touted as "the deal of the century". When a deal seems too good to be true, it usually is. If it doesn't fit into your idea of a great coin for your collection, you should probably pass on the deal (unless you're one of the fortunate few with unlimited financial resources). Go for those coins that meet your individual criteria for true collecting pleasure. If you happen to love frosted cameo devices on deep mirror fields, it doesn't make much sense to buy a rare variety of Fugio cent in VG8 condition. If on the other hand, you find yourself highly fond of rare early coppers, that very same coin may be just the right fit for you. Remember, you want to build a meaningful collection. A hodgepodge of otherwise highly valuable rare coins may be worth only a fraction of similar pieces organized and placed into your personal fine coins cabinet.
Stay on track with your collecting goal(s). Balance your collecting budget with the fact that rare coins do generally increase in value and go up in price. To postpone the purchase of the most expensive coins needed for your collection may mean never realistically completing it at all. One has to only check the prices realized between a nearly-complete set of Mercury Dimes missing only the 1916-D versus a complete, well-matched set. This applies to Lincoln Cents, Buffalo Nickels, Walking Liberty Half Dollars, and many others. Buy the key dates. Buy the finest quality that you can find and afford. This will be your best possible avenue to a sense of pride-of-ownership and overall financial rewards.
Enjoy yourself! Perhaps the best aspect of coin collecting is the fun of the chase. Most of us have limited financial means by which we build our cabinets. Align your collecting goals according to your financial abilities and overall need to complete a collection. This will result in the most enjoyable collecting experience possible.
People attracted to the hobby of coin collecting tend to exhibit certain traits. Perhaps the most commonly seen is that of a seemingly insatiable need for more knowledge. The more you learn about the relative rarities and conditions of the coins that interest you, the more you will appreciate just how much there really is to know! Researching the historical events of the year when a coin was minted is an intriguing way of adding enjoyment to your collecting endeavors. Savor each and every specimen you are able to obtain for your expanding collection.
Mitch Hight is the owner of Rarity Exchange Company. He has been involved in numismatics for over 30 years and is a life member of the American Numismatic Association. Mr. Hight may be contacted at Rexco, P.O. Box 8123, Colorado Springs, CO 80933 or by email at mitch@coin-gallery.com