Collecting Coins
A coin is a piece of metal, or sometimes other materials, certified as having an intrinsic (or exchange) value. Its mark or marks indicate that it can be used as money to buy other things, usually commodities such as food and clothing. Coins can also have a symbolic or commemorative value and are often collected by enthusiasts. Coins can have either an obverse or a reverse, and often both, but the name of a coin is usually given to its obverse (or heads side) and its year of minting is shown on the reverse. The word coin is also used to refer to a digital asset that runs on a blockchain and acts as money in a digital economy. It is distinct from a token, which is a digital asset that runs on top of an existing blockchain infrastructure and has utility functions such as voting rights.
The use of coins as a medium of exchange began several thousand years ago. People realized that the weight of a particular metal—gold, silver, copper, bronze or iron—conveyed an intrinsic value and could therefore be used as a measure of currency. The value of a coin was established by weighing it against other objects of similar weight. As time went by, the metal itself became less important as a unit of measurement and the coin was minted to make it easier to handle and to keep track of its value.
In most ages the face of a coin shows an image of a monarch or other person in authority. This is the obverse of the coin. The other side of the coin, which shows various kinds of information such as the date and the year of minting, is called the reverse.
People collect all types of coins from around the world. Some collectors focus on a specific type of coin such as a particular dollar, quarter, or silver coin. Others build collections based on themes such as sports, holidays or historical events. Many people also collect the complete set of a coin series such as Indian- and Lincoln-head pennies, Buffalo nickels or Mercury dimes. The aim of these kinds of collections is to obtain a coin from every mint for each year of issue.
Regardless of the type of collection, all coins should be handled carefully to avoid damage. It is best to hold coins with the edges between thumb and forefinger. The surfaces should not be touched because oil from the skin may cause permanent damage to the coin. They should also be stored in protective cases such as coin capsules or a box. The condition of a coin has a direct impact on its value and should be kept in good shape. The value of a bullion coin is primarily determined by its quality, rarity, beauty and popularity with collectors. The value of a circulating coin is influenced by these factors, but it also depends on the market price for the metal in which the coin is minted.