Reasons for Coin Collecting

Coin collecting has been in vogue throughout recorded history. Its popularity coincides with the earliest use of metal coins for trade and barter. The generalized study of coins and currency is called "numismatics".

There are two main reasons that most people start to collect coins. The first reason is because coins have value as currency and/or they have value because of the metal they are made from regardless of the face value-- this is called intrinsic value. The second reason is that many coins have enormous value because of their pristine condition, design, history, low mintage, and other factors apart from any intrinsic value-- this is called numismatic value. Collectors of both kind prefer old coins that were only in circulation briefly, coins that were produced with errors that occurred during minting, and old coins that have some other special historical significance.

It is also important to consider the mint's location and history. Coins minted in Carson City during gold rush times and when the expansion west was at its height are very valuable, for example. People want them more than they do coins from other places and more mundane times.

No matter the reasons behind your interest in collecting old coins, you may find it surprising to learn that entering the hobby requires little money. Many coins of value, historically and otherwise, are sold for mere pennies. Coins of interest may be found in that jar of extra coins on your counter, and by accident while walking in the park. As such, the entire family can find the hobby of coin collecting rewarding.

People usually come into the field of coin collecting after finding a special old coin or visiting overseas and becoming acquainted with foreign coins. With the price of gold and silver ever increasing, coin collecting can be a profitable hobby.

The popularity and significant amount of money involved has lead to unscrupulous dealers. They prey on a customer's ignorance by selling fake merchandise or inflating the price of legitimate items. Thus, it's smart to commit some time to research. Get to know the ins and outs of your new hobby before diving in to the deep end. This will save you time and trouble in the long run.