Collecting coins can be either for the sheer pleasure of collecting or for financial gain. Most collectors start out as youngsters attracted by designs, the history behind the coin and the challenge of collecting sets. Collecting coins can be a very expensive hobby but it can also be lucrative. There are many factors involved in the value of a coin including condition, rarity and demand.
One of the challengers in coin collecting is determining the grade of the coin. American coins are now graded on a 70 point scale, with MS70 being perfect. For "mint state" (uncirculated coins) graded MS60-MS70, there is absolutely no trace of wear. These coins are at the high end of the market. MS70 coins are just about nonexistent. The difference in one grade can be worth hundreds to thousands of dollars. Because grading is very subjective, there are two grading services that can be used: Numismatic Guaranty Cirporation (NGC) or Professional Coin Grading Service (PCGS) These services enclose the coins in air-tight plastic holders and guarantee the grade. They should be used for valuable coins.
The lower grades are classified on the amount of wear from "almost uncirculated" to "fine" to "good."Collections can be based by: country, year, mint marks, design, or period. In buying or selling coins, the dealers take a percentage of the value. It makes sense to locate a dealer one can trust. Obviously, more profit is to be gained from the very expensive coins. However, the non-professional collector probably can't afford such coins. There are publications listing the value of various coins. It is recommended that one start off slow with inexpensive coins, read up on collecting, visit coin shows, locate coin clubs and locate reputable dealers.
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