The Federal Reserve has announced the official phase-out of the penny, a move that highlights the declining relevance of this once-cherished coin. While many may lament the loss of the copper-colored currency, this development could spark a renewed interest in coin collecting, known as numismatics. As casual collectors begin to explore the world of coins, it’s essential to grasp the basics of this engaging hobby.
To guide newcomers, we spoke with Donn Pearlman, a former journalist and spokesman for the Professional Numismatists Guild. Pearlman began collecting coins at the age of eight and describes his journey as both fascinating and rewarding. “Even though I have never owned a multi-million-dollar trophy coin,” he notes, “I’ve been lucky and thrilled in my professional life to see and hold many of the world’s most famous rare coins.”
Getting Started: Simple Steps for New Collectors
Many enthusiasts begin their coin collection with everyday currency found in circulation. Pearlman emphasizes the importance of knowledge in differentiating a mere assortment of coins from a meaningful collection. He advises, “There’s an old saying in numismatics: ‘Buy the book before the coin.’” For U.S. coins, the latest edition of A Guide Book of United States Coins, affectionately known as “The Red Book,” serves as a vital resource. Similar reference materials are available for coins from various countries.
New collectors should focus on coins that resonate personally with them. Pearlman suggests considering historical figures or events depicted on the coins. “Perhaps you want to put together what’s known as a ‘type set,’ one representative example of each denomination and design struck during a certain time period, such as the 20th or 19th century,” he explains. The beauty of coin collecting is that it can be initiated with minimal investment; some coins can be acquired for less than a dollar.
Attending coin shows and engaging with fellow enthusiasts can also enhance one’s knowledge. By asking questions, collectors can learn the terminology and nuances that set different coins apart.
Common Misconceptions and Best Practices
One prevalent misunderstanding among novice collectors is the belief that older coins are inherently rare and valuable. Pearlman clarifies, “There are many ancient Roman bronze coins priced at $50 or less. But a 1913 U.S. Liberty Head nickel is worth millions because only five are known.” The value of a coin is influenced by its condition and rarity; a worn Indian Head cent from the early 1900s may fetch only a couple of dollars, while a pristine example could command thousands.
A critical piece of advice for new collectors is to avoid cleaning coins. Pearlman recounts a poignant experience: “I frequently tell the story of a heartbreaking encounter I witnessed at a coin store when a widow brought in her late husband’s collection to sell. She had scrubbed each coin with a kitchen scouring pad, believing it would increase their value.” The harsh cleaning caused irreversible damage, significantly lowering the coins’ worth.
As collections grow, proper handling and storage become essential. Pearlman notes that many collectors use safes or bank safe deposit boxes for secure storage. Coins graded by accredited institutions, such as the Professional Coin Grading Service, are placed in tamper-resistant holders that protect against environmental damage. It is crucial to avoid storage containers made of PVC, as they can harm coins over time. When handling coins, collectors should only touch the edges to prevent leaving fingerprints.
Finally, new collectors must be cautious when purchasing from dealers. Pearlman advises, “If you don’t know coins, then you better know your coin dealer.” While technology offers new ways to research coins, it has also introduced risks, such as scams involving counterfeit or misrepresented items. He recommends working exclusively with reputable dealers who are members of recognized professional organizations like the American Numismatic Association, which adheres to strict ethical standards.
As the penny becomes less relevant, the world of coin collecting stands ready to welcome new enthusiasts. With the right knowledge and approach, anyone can find joy and fulfillment in this rich and rewarding hobby.
