Canadian Coin Collecting

In Canada where money the popularity of coins has shown significant increase because the value of the “paper money” tends to deflate as much as 25% to 30% in a short period of time.

For this reason, coin manufacturers in Canada started making different kinds of coins to replace the value that was lost in the depreciation of paper money. Gold continues to thrive in various types of coins and their value continues to increase.

Coins function as solid emblems of a nation’s history. Canada has gained importance by producing Canadian coins serve as a means of monetary exchange and a source of historical enrichment.

Many coin collectors are enticed to try Canadian coin collecting. They know that collecting such Canadian treasures not only offer them remarkable diversion but can also provide them with additional value in the future.

So for those who wanted to start collecting Canadian coins, here is a list of some ways to get you started:

1. Do your homework

Like in any venture you must do your homework before you start collecting coins. Try to research how Canada manufactures their coins.

Learn the history of coins and how they may offer great opportunities to earn a profit and at the same time be an enjoyable hobby.

2. Finders keepers

To start the ball rolling, try to get as many coins or tokens as you can obtain without having to spend a great amount of money. Your parents or your grandparents may have some coins that they kept because they did not hold any monetary value at that time.

3. Use some guides

Coin collecting is not a complicated activity but it is not that easy either. You would likely need some references that will guide you in choosing the kinds of Canadian coins to collect.

You can refer to “Haxby’s Coins of Canada” or other brochures that will provide you with adequate information regarding Canadian coin collecting.

4. Enjoy and have fun

The idea of coin collecting is not to get the most expensive and the rarest coins that you can find. What matters most is that you enjoy what you do and that you are amazed by the kinds of coins that you are able to obtain.

Coin collecting may differ from one place to another but Canadian coin collecting is sure to give a hobbyist great pleasure and not just mere treasures.

Accessories for Coin Collection

When collecting coins, one thing to consider is how to arrange and take care of the coins. Coins that are collected may be antique, ancient, or limited editions coins. These coins come from many countries and are usually high in value. A collector must know how to keep and take care of them so that they will retain the same appearance and value.

One way to take care of coins is to purchase s selection of coin accessories. Not only are coin accessories used to make a coin collection presentable and organized; but the primary purpose of coin accessories is to take care and preserve the coins.

When buying coin accessories it is important to choose those accessories that will best satisfy the needs of the collector. Some factors that may be considered are durability, price and usefulness.

Many coin accessories can be found in collectible stores and even online. Here are some coin accessories that may be considered:

Coin Boxes

Coin boxes are the most common sought for coin accessories as they are very convenient to coin collectors and specialists. The compartments of the box provide for easy location of the coins. The compartments are also wide, which provides flexibility in placing the coins. The wide compartments also allow the collector to handle the coins the proper way.

Coin Albums

Coin albums are similar to any typical album with the difference being that the coin album is especially designed to hold coins. A coin album has a transparent layer that aids in the protection of the coins. The collector does not need to handle the coins one by one. All he has to do is turn the pages and the coins are all there protected from improper handling.

Coin Holders

Coin holders are best for those collectors who collect coins during their travels. They allow portability of the coin collection. In addition, the collector does not need to carry his entire collection. He can simply place a single coin in the coin holder. Coin holders provide safety for the coins and prevent a coin from the many elements that may depreciate its value.

Other coin accessories can be found in the market. Determine the primary purpose of the accessory and if it can satisfy your needs. Prices will differ depending on the durability of the accessory. Research the many coin accessories that are sold and compare prices before choosing one.

How to Detect Counterfeit Coins

A special machine does the stamping of coins to make them genuine. People who counterfeit coins are well trained and have the capacity to manipulate their duplication - especially those rare coins which have high value among collectors. The most common procedure used in counterfeiting is that they pour a liquid metal into molds that will leave die marks with cracking on the counterfeit coin.

Those who are experts in determining counterfeit coins have observed that the changes seen in the coins have added, removed, or even altered the coin’s date markings. If a person thinks that he is in possession of a counterfeit collectible coin, he can compare it with another coin – one like the suspect coin – which is known be genuine and have the same markings.

If the coin’s value is more than 5 cents, look for corrugations in the outer edges of the coin. These are very thin railings (also know as “reeding”) on the edges of the coins. Genuine coins have very thin edges and the railings are even and distinct if one is very observant. Those coins that are counterfeit can be distinguished if the edges are not thin enough and the railing is uneven or missing in some areas.

Should there be an instance when a person perceives that he has received a counterfeit coin, he must not return the counterfeit coin to the person that handed him. He must try to delay the person – should he try to escape – or try to keep that person in sight and follow him to his destination if possible. It is important to remember the person’s clothes and physical appearance and if the person has any companion during the exchange: if they have a vehicle, get the car’s license plate number and immediately call the nearest police department or the United States Secret Service for help.

There are many things that can be considered to determine whether the coin is counterfeit or not. There are terms that are used to describe a counterfeit coin’s characteristics and they are as follows:

1. A restrike of a coin can be considered to be genuinely authenticated. These coins are actually dated earlier than those originally issued by the country that released them but have the same or exact features as the original coins.

2. Coins of a specific country in the ancient times are sometimes copied by another country. A person may think that it is forgery, but it is not because they had been legally approved in the country where they originated.

3. Forgery can be associated with the making of an illegal profit. It would be the main objective of the counterfeiting syndicate. The government sometimes uses forgery for political propaganda, as in the Second World War when Germans produced millions of American and British banknotes with the intention of profiting from them and destabilizing their enemy’s economic situation.

4. Another known type of counterfeit coins is replica coins. Replica simply means that the original coins are copied with the same features and markings. The usual counterfeit coins have differences that are noticeable when examined by coin experts. Some coins have the word “copy” intentionally put on the sides of the coins and these replicas are used for educational purposes and museum displays.

5. A Lebanese connection is said to have a huge production of counterfeit coins. These coins were found to be used in an attempt to fool many museums, collectors, business leaders and other countries that are searching for their ancient lost coins before the discovery of this syndicate.

6. The collector intended forgery and the circulated intended forgery are types of forgeries where the coins are intended to be tokens yet the face values are accepted, despite of their illegality and irrelevant intrusive values.

It is important to consult an expert to determine if the coin is counterfeit or fake. An ordinary person can easily detect if the wrong metal was used for the counterfeiting. If the person is a collector of such items, he should be more aware of these coins. A collector needs to be more concerned with the collectible rare coins because this is where counterfeiters benefit frequently - their aim is to profit from the exclusive market for valuable coins.

How To Store Your Coins

There is a kind of Hippocratic Oath used implicitly among coin collectors: First, above all, do no harm. Strictures on cleaning coins are well-known in collecting circles, even though there's continued debate about how and when. Despite that, there's general agreement on how to store coins.

To avoid the damaging effects of oxidation, finger oil, scrapes, etc, coins should at least be stored in Mylar plastic containers, one coin per compartment. They come in a variety of styles.

Inexpensive Mylar-lined cardboard holders can be purchased. The holders have a small, round cut-out for placing the coin so it can be held up and seen from either side. They come in a form sometimes called two-by-two's. They are often 2 inches by 2 inches.

Some holders are sheets that will hold several coins, but each in its own separate area. Others are small, individual sleeves that will hold one coin each. Several styles have holes punched in the edge so that coins can be stored in a binder, but these are not ideal. Coins should be displayed.

Cabinets, ranging from small, glass and wood cigar-box style holders to large, floor-standing Chippendale types, can be bought to hold and show off your collection. The more expensive types are nearly air-tight and some even have archival-style dehumidifiers.

Aged mahogany or rosewood both make excellent wooden cabinets. You should avoid any wooden cabinet, such as oak, that emits organic compounds into the interior. Many types of tree, long after being chopped down and even when not coated with varnish, will produce volatile, organic compounds. Some of those compounds are harmful to coins.

Many collectors, for that reason, will recommend a metal cabinet instead. Several styles exist, some with a coating that helps to prevent scratching and oxidation. Plastic or polystyrene containers are also available, though they rarely display as nicely.

Whichever style of cabinet you get, apart from those with in-built dehumidifiers, it's helpful to have a supply of silica gel packages or other desiccant. They absorb moisture that contributes greatly to oxidation.

Some collectors will coat the coins with vegetable oil or wax before storing, but these practices are controversial. Oil can attract contaminants and wax may give a false sense of security, since it can easily wear off or dull the view. Beyond what to do or use, there are several things to avoid.

While avoiding exposure to air is good, it's not true that any kind of packaging is better than none. PVC (polyvinyl chloride) sleeves are generally not recommended. They can cause the coin's surface to become coated with a greenish sludge that is harmful and difficult to remove cleanly.

Though displaying coins is preferable, storing them away is sometimes necessary. Paper envelopes can be used for this, but avoid standard office supplies. Get envelopes specifically made for coin storage. The sulfuric acid in ordinary paper can damage coins, especially ones containing copper.

Never store collectible coins in any kind of bulk container, such as penny rolls, plastic tubes, etc. That leads to scratching and denting and doesn't keep out harmful air.

Specially-made sealed containers that hold a collectible are best, though they add to the up-front cost of the coin. In the long-run, however, they will keep your coin in good condition for long term storage and display.

How To Clean Your Coins

Though debates rage about whether and how to clean your coins, most serious collectors agree on some basic guidelines.

The first principle is similar to the Hippocratic Oath for physicians: avoid damage at all costs. Most coins have already experienced wear and degradation of various kinds. Exposure to air, banging together in carrying bags, use in commerce and a host of other actions will result in nicks, scratches and corrosion.

Don't make the situation worse once you acquire the coin for collecting or trade. That principle implies a method for deciding when to clean a coin. If leaving the coin untouched will result in further degradation - because of the presence of corrosive chemicals, dirt or other material - then clean the coin GENTLY.

The goal is never to make them look 'shiny and new', but merely to prevent any further corrosion or damage from chemicals the coins may have come in contact with. The green stain on copper coins is a common example. This is copper oxide - in essence a kind of rust.

What you use to clean them with will depend on the kind of material you are trying to remove. But there are some common household ingredients that can be used safely. Be sure to wash your hands and lay out a clean working area first. Test any method you use on an ordinary coin before using it on a collectible.

Ordinary liquid dishwashing detergent is useful for removing surface dirt. If soaking doesn't work, apply a small amount to the surface and rub very gently with the thumb and forefinger. Do one coin at a time and keep them separate so they don't scratch or ding one another.

Lemon juice contains a weak acid that is useful for removing oily smudges, including those produced from unwashed hands. Sometimes a short soak will remove material without the need for rubbing. Try that first. Keep in mind however that removing oil exposes the surface to air. The oil serves as a protective coat. That can lead to oxidation.

Coins should preferably be air dried, but if you must rub use an extremely soft cotton cloth and rub very gently. A better method and material is to use cloths made especially for cleaning eyeglasses, as they are non-abrasive.

Before using any kind of tarnish or stain remover, similar to the sort commonly used on silver spoons, for example, consult a coin dealer. You may actually lower the value of the coin by making it less tarnished. Always use the type especially made for coins.

Dealers and serious coin collectors will in rare cases use electrolysis to clean certain coins. Though, again, most coins are never cleaned or polished at all. Home kits exist or can be made for this purpose, but they should be used with extreme care.

To repeat: you may actually decrease the worth of your coin in attempting to 'improve' it. When in doubt, consult a dealer before cleaning any coin.

How To Grade Coins

Grading coins is both science and art. You may want to acquire this skill not for the purpose of becoming an expert, but simply to better deal with other collectors and dealers. Knowledge is power, if only the power of self-defense.

Grades run from 1 to 70, after a system developed in the 1950s by Sheldon. That system has been adapted and expanded, so that earlier designations (such as Poor, Fair, Fine, Uncirculated, Mint State and others) are combined with numbers.

The best way to begin to learn how to grade your own coins, or ones you are considering acquiring, is to study a number of concrete examples. Nothing teaches so well as experience. But, first, some elementary terminology. Coin Graders examine the 'obverse' (the 'face') and the 'reverse' (the 'back') of the coin. They pay attention to highlights in 'lettering' (letters or numbers), but also to 'devices' - the designs, such as laurel wreaths, buildings, faces, etc. They look for 'luster' and 'wear', which have the common meanings, and for damage to the 'rim'.

As the first example, consider the Winged Liberty Head Dime. One sample, minted in 1941 and therefore almost 90% silver, 10% copper, will have a number of elements that are easy to analyze.

First, is the content. If it isn't 90% silver and 10% copper which can be measurered using a simple test, it's probably a fake.

Next, check the obverse. The face of the figure on the obverse will show a varying level of detail in the hair. If it's well defined it may contribute to a designation of Extra Fine (EF) or even Uncirculated. Feathers that form the wing should show clearly, with the edge protruding visibly from the background.

There may be minor nicks, and other abrasions, even in an uncirculated coin. Except in rare instances, even uncirculated coins are collected in a bag and moved around. That jostling will often produce small amounts of damage and wear, even if the coin was never used by the general public for currency.

Morgan Dollars are another popular collectible item. Collectors should look for wear in the hairline above the eye and ear. Strands should be visible, and the folds of the cap should have little wear.

As with other coins depicting a face - the Roosevelt Dime, the Jefferson Nickel, the Lincoln Cent and many others - the luster of the cheek and forehead is telling.

Luster should be the result of low use and wear, not artificial cleaning. Cleaning a coin almost always lower the value. It introduces an unnatural color and sheen, and often introduces abrasion marks on the surface that is easy to see with a magnifying glass. In the Morgan, the eagle's breast, along with the talons, should be well defined. Feathers should show detail and the tips of the wings should be distinct.

These, along with many other examples, will quickly show the student of grading that issues of degree and individual judgment will play apart for years to come. Until careful computer modeling (based on image recognition software) can be perfected each grader will make a slightly different determination.

When seeking the advice of experts, try to get more than one opinion - and develop your own skills in order to judge the worth of the advice.

Coin Grades

Many novice collectors begin by inheriting a small set of coins from a relative. The first question asked is invariably 'How much are these worth?' The first step in answering that question is to grade the coins.

But despite the many innovations in grading coins over the last few decades, the process is still as much art as it is science. Experienced dealers and collectors will issue a judgment based on observations made and knowledge gained over many years. Even then, skilled practitioners can arrive at widely varying conclusions.

The most basic answer is: a coin - like any other item traded on a free market - is worth what someone is willing to pay. That said, grading plays a substantial part in assessing the value of the coin.

Traditional grades run from Poor through Fair, Almost Good, Good, Very Good, Fine, Very Fine, Extra Fine, Almost Uncirculated, Uncirculated and Brilliant. Placing a coin in any one of the categories is always a judgment call, but there are several factors widely employed.

The coin is examined by eye and under magnification to look for its overall condition. All but a very few uncirculated coins will have various defects, the most common of which are called 'bag dents'. Almost all coins, even many so-called uncirculated coins are placed together in a bag. Banging against one another produces small nicks, dents and other damage.

Circulated coins typically get handled many thousands of times even within only a few years. As they get more and more worn, the surface and edges degrade through the various rankings.
Naturally, the high points on coins tend of receive more wear, and sooner, than the rest of the surface. Letters and numbers are the chief features that suffer abuse but devices (images) suffer, too. As they become harder to detect, less in 'mint condition', the grade of the coin gradually lowers.

For an Indian Head Cent, for example, it's important to be able to make out the letters spelling out 'liberty' on the headband of the coin's figure. For a Buffalo Nickel, key to a high grade is having a distinct and well-formed horn and tail.

More contemporary grading systems have much finer grades. Beginning with the Sheldon system - which established numbers of 1 to 70 - and since there have been created increasingly sophisticated and detailed grades.

In 1986, PCGS (Professional Coin Grading Service) adapted and extended the system to create combinations of letter and number to designate grade. Thus, you may see: PO-1, AG-3, VF-25, MS-60 (MS = Mint State) and similar grades. Their system is widely used today.

Grading isn't the only factor that determines the worth or price of a collectible coin, but it plays a large role. Rarity is important, as with any collectible - but much less so than is commonly thought. Age is a factor, but a common 1921 Morgan Dollar in poor condition may not even be worth a dollar.

To determine the collectible value of your coins, try to make a self-assessment, then get at least two expert opinions. Then remember that a coin is worth whatever someone is willing to value it for. On that basis, if it came from Grandmother's collection lovingly gathered over decades, it may be priceless.