What is a Coin?

What is a Coin?

A coin is a piece of metal that people use to pay for things. Coins have been used for money since ancient times, and people continue to use them today. Coins are usually made of gold, silver or copper. They can be round, oval or rectangular. Most coins have the face of a monarch, president or other famous person on one side, and the name and image of the country on the other. They may also have a design, privy mark or other information.

Modern coins are minted in large sheets of metal rolled into coils, like giant wrapping paper. The Mint artist draws a sketch of what they want the coin to look like and then creates a model in clay or digitally. They then transfer the design to a metal stamp, called a die. The die stamps the design onto each coin. Coins with a higher value or for commemorative purposes are often bimetallic. The obverse (front) and reverse (back) sides of the coin must match in terms of type, and some countries have rules about how the coin must be oriented.

Some coins have a reeded edge, where the edges are pressed to make them sharp. Other coins have a smooth edge, called a milled edge, that is less sharp. The type of metal the coin is made from determines how hard or soft it will be. People also have different preferences about how a coin should feel in their hand.

Many people collect coins for their beauty, and they display them in coin albums or framed on walls or tables. Others collect coins as an investment and try to sell them at a profit. The most successful investors know that coins are a long-term investment, and they buy them at a discount to their retail price. These investors also do their research before making a purchase and understand that there is a lot of misinformation about the coin market in newsletters, coin magazines and from some dealers.

A person who wants to collect coins should start by buying a book, such as the Guide Book of United States Coins, or Red Book, to learn about the coin market and prices. They should also seek a dealer who is reputable and knows the market well.

The best way to protect a coin collection is to store it in a protective case, such as this leather one. Other options include a velvet coin slab and wood boxes that are like jewelry boxes. When storing coins, it’s important to keep them separated by type so that they don’t stick together. It’s also a good idea to avoid touching the coins, as they can be damaged by oil or dirt on the skin. Finally, collectors should consider using a check or digital wallet when paying for goods and services instead of cash. This can help prevent the coins from getting dirty and rusty as they are handled, and it may help them appreciate in value over time.