Metal in many shapes and sizes was used for money long before coins started making the rounds. Today we know about two groups of people who, thousands of years ago, started making objects similar to what we call coins. They stamped pieces of metal with weights (values) and other marks. This way they didn't need to weigh the metal each time it was used to buy something.
Who were these first coin creators? We've long known that around 600–700 B.C., people from Lydia (part of what is now Turkey) started stamping the royal emblem of a lion's head onto pieces of electrum. They got this alloy of gold and silver from the banks of Lydia's rivers. And recently, we've discovered that even earlier (about 1000 B.C.) people in China made bronze coins.
Numismatist! (Pronounced new-miss-ma-tist.) This tongue-twister of a word makes a rich addition to your vocabulary. It means "someone who studies and collects things that are used as money, including coins, tokens, paper bills, and medals."
Just think of the month of August, and it's easy to remember this answer. The earliest recorded coin collection belonged to Augustus Caesar, the first emperor of Rome. He lived from 63 B.C. to A.D. 14, and the eighth month of our year is named after him.
Not only did Augustus keep adding coins to his collection, but he also gave them as gifts. Following his lead, many of the Roman emperors who ruled after Augustus also had large coin collections. The hobby became even more popular during the Middle Ages, when wealthy individuals and royal families built awesome collections.
Each year, the United States Mint makes between 14 billion and 20 billion circulating coins. These new pennies, nickels, dimes, quarters, half dollars, and dollar coins are all made at the Philadelphia and Denver mints.
Most coins can circulate for about 25 years before they become too worn to be used anymore. That's a long time when you consider that the average dollar lasts for only 18 months.
The United States Mint recycles worn-out coins it receives from a Federal Reserve Bank. The Mint then sends any usable metal that's recovered to a fabricator, who turns it into coinage strips for new coins.
Green slime is as nasty as it sounds! As a collector, it's one of your worst enemies. It will take a valuable coin and turn it into a sticky, worthless mess. Green slime is a chemical that's used to make plastics softer, and its real name is as horrible as what it does to coins: polyvinylchloride (PVC).
How does PVC attack coins? By lurking in some of the flips and other holders used to store coins. Over time, the sticky film spreads from the container to your coin, eating into its surface. You NEVER want to store your coins in anything made with PVC!
Nearly always, circulating coins are worth more than the metal they are made from. In fact, coins—especially old-dated ones—can be worth a great deal more if they are in "mint condition."
When it's been buffed or whizzed! A buffed coin is one that's been polished to make it look like an uncirculated or proof coin. A whizzed coin has been wire brushed or burnished, often on a wheel, for the same reason. The problem with buffing and whizzing is that they wear down the coin's original surface, reducing its value.
Age, rarity, condition, and precious metal all affect how much a collectible coin is worth. The value of any one coin can be surprising. For example, you can buy some Roman coins that are more than 1600 years old for less than $10. But then there are some worn 1909 wheat pennies that sell for hundreds of dollars!
As a general rule, the harder a coin is to find and the more people who want it, the more it's worth. This is known as the law of supply and demand. It holds true no matter what the collectible.
Not A's, B's, C's or even F's. Coins have their own grading system, which describes how much—or how little—wear and tear they have. U.S. coins are graded with a scale created by the American Numismatic Association (ANA), a non-profit group created in 1891 and chartered by Congress since 1912. The lowest grade on this scale is About Good-3; the highest is Perfect Uncirculated-70.