The Coin Collecting Hobby Industry – What You Need to Know

Coin collection is one of the most prevalent and widespread collecting hobbies in existence. The hobby of coin collection is very old, and perhaps one of the only hobbies that can make you rich (however, the probability is very small). Hobbyists collect coins for a wide variety of reasons. Some collect coins for the aesthetic appeal of different coins, and their engraving artwork or shiny appearance. But at the same time, many collect coins for investment purposes. Coin collecting hobbyists always feel that coins have long shelf lives and a very low chance of depreciation. It is not possible to see so many collectibles that are hundreds of years old.

Like other markets, the coin collector market also underwent major changes in recent years. 30 or 40 years back, the coin collection market was in the hands of professionals and dealers or resellers, who also controlled the values of coins. Today the scenario has changed; now investors and enthusiasts have taken over the market of coin collection. Internet auctions have also played an important role in snatching the control of the coin collector market. Now it is not necessary to know the details of a coin in order to cultivate the hobby of coin collecting. The only thing that is important to know is that the grading of the coin is done according to the appearance of the coin.

In older days, there were special shops in which you could find different types of coins. If you wanted to buy or sell coins then you have to visit some of these shops. But now you will find coins everywhere. The easiest way to find lots of coins is hunting all over the place for hidden treasures. I don’t mean digging your backyard (although it is good exercise); I mean looking in places that you wouldn’t expect, like your grandpa’s change jar. But before collecting coins you have to look somewhere else. Before looking for the coins you must acquire the knowledge of the appearance of coins.

Look closely at the condition of the coin, since this is the main factor along with other minor points that determines the prices of coin. There are basically two categories of coins.

A circulated coin: These types of coins have many marks, and sometimes it is very difficult to even see the figure or text. The circulated coin category is further divided into eleven different grades. These grades show how much the coin has been worn out. The dents or scratches on coins were always ignored. The grades of circulated coins range from AG-3 (heavily worn) to AU-58 (the best rank that topped the scale with very little wear). As a rule, the lower the grade the lower the price.

Uncirculated coin: This type of coin looks very new and fresh without any wearing or marks. This category of coin is graded on the American Numismatic Association scale from Mint State 60 to Mint State 70. The grades of this type of coin are determined scientifically considering many factors like shine, mint marks, casting quality, etc.

The grading of coins is the major factor in determining the value of coins, but there are other minor points that also affect the price of the coin. As with every other industry, the demand for a particular coin will boost its value. The market price of a particular coin also affects the value. The requirement from dealers may boost the coin price as well.

If you want to get started with coin collecting, it is recommended that you get in touch with a professional coin appraisal expert. If you can look at the different quality levels, you will start to be able to recognize what shape a coin is in almost instantly. This will help you immensely when you are looking for coins to add to your collection. From there, all you have to do is look for coins!

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