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The overwhelming majority of U.S. coins ever minted were circulated. Many coins were lost through attrition and others were damaged by use, thus eliminating any potential for numismatic value. The few surviving uncirculated coins are in a much more pristine condition.
Investment quality coins are primarily those coins rated in 11 uncirculated grades, 60 and above, on American Numismatic Association's 70 point grading scale. A coin's grade is a measure of its condition or state of preservation. The higher grade, better condition.
Uncirculated coins fall into two broad categories: Proof (PF or PR) and Mint State (MS). Mint State coins were originally meant for circulation but never were circulated, so they remain in same condition today as when they were minted. Proof coins were never meant for circulation, thus they received very careful handling and were specially struck at least twice on highly polished planchets.
The beauty of a coin can attract collectors as well as investors, and hence increase demand for a particular coin or set. This increased demand can result in rising values. Eye appeal is affected by several factors including beauty of a coin's design, minting process used, fullness and sharpness of its strike, toning, brilliance of its luster and amount of wear and number of blemishes on coin's surface
Portfolios or Collections?
The age-old description of coin collecting as "Hobby of Kings" is both accurate and misleading... accurate in conveying outdated perception that coin collecting is restricted only to very wealthy, misleading in that number of collectors has steadily increased and has been estimated by American Numismatic Association to include as many as 7-10 million coin buyers in United States alone. Typically, coin collector collects coins for their rarity and historical value. Collectors view their coins as rare art and as tangible remnants of cultural and economic forces that created them.
The investor begins from a different starting point--the fact that coins of proven rarity have shown remarkably high rates of appreciation. He sees economic results of pleasures of collecting and makes his original purchases with profits as his only motive.
However, we have found that line between those of our clients that are collectors and those that are investors has become increasingly blurred. Collectors can't help but be pleased when coins that they sell bring an attractive profit. Investors begin to see their coins as works of art and become knowledgeable about circumstances of their minting and era in which they were circulated.
Both collector and investor come to realize that their intellectual curiosity, aesthetic sensibilities and enjoyment in our country's past can be used to create a collection that becomes an important store of value, a way to accumulate wealth that can be passed on to future generations--or used to fund their own retirements.
Steve is the ceo of cashcards-goldlynks rare/gold coin club he was the best isp in 1997 check out his about us page at http://goldlynks.tripod.com this article is free for distribution you can sign up for a free email course on buying and selling rare/gold coins for profit by sending email to firstname.lastname@example.org membership of the coins club is free to join at http://goldlynks.tripod.com