What is Numismatics?

Numismatics is the study of money, banknotes, medallions, stock certificates and token coins. It is thought that numismatics was established during the time of Julius Caesar who wrote the very first book on this subject. It's a very interesting topic because each medallion, medal, penny or coin represents a different culture, era, economy, and or even politics.

Numismatists are people who actually study the history and the appearance of different kinds of currency, and are quite different from coin collectors. Generally speaking, coin collectors are really usually only interested in the prestige that goes with collecting coins, whereas a numismatist can be both a coin collector and a numismatist.

Coin collecting has become very popular in recent years. The most common coin designs are the ones that depict a specific era when and where the coin was released.

Generally speaking numismatists are interested in the origin of money, its uses, and its variety, production and finally appearance. They are interested in exploring the roll of all the different kinds of currency throughout history using mint information.The word mint refers to the facility or place where the coins were created and manufactured. Numismatists also authenticate or grade coins in order to determine their actual market value. There are actual coin grading system facilities that have been establilshed for this purpose.

Right now there are three major third party facilities that grade or authenticate coins or paper money. They are the NGC or Numismatic Guaranty Corporation of Sarasota, FL, the PMG which stands for Paper Money Grading, and finally the PCGS or Professional Coin Grading System which is located in Newport Beach, CA.

PCGS was created in 1986 and grades and authenticates coins for commercial purposes for the most part. They are a completely independent body that provides expert opinion in rating coins. NGC is another third party company that offers services only to numismatists, it was created in 1987. PMG only authenticates or grades paper money and is actually part of PCGS.

During the time when coin collecting was not as popular as it is now, a coin could only fall into three categories:

1. Good. This meant tht the coin had all the details intact.

2. Uncirculated. This meant that the coin was never put into the market system, and still retained its original appearance.

3. Fine.This meant that the coin had all the details intact, and still had a bit of luster that was visible.

Understanding how to properly grade a coin is a gift and an art. It requires exposure, skills, and knowledge. For coin collectors having the ability to grade a coin is an absolute must because the value of any coin depends solely on its grade.

These are the things that numismatists use to grade coins:

1. Coloration. For many coin collectors this is a big deal, and if the coin's original color has been preserved this in truth can have a big impact on its value, especially if the coin is made out of copper or silver.

2. Strike. This refers to the process where the coin is designed, and has to do with where the coin is being stamped onto a planchet. In the overall grading of a coin, strike really doesn't count for much.

3. Surface Preservation. Any abrasion on the surface of a coin is a huge factor in grading it, but it does not necessarily mean that an abrasion will lower the grade of a coin, particularly if it is on the back side for example.

4. Luster. This determines whether or not the coin has been circulated in the marketplace. To have a higher grade, a coin has to be intact and completely free from any form of blemish or imperfection.

5. Eye Appeal. While some coins are not going to be perfect, many collectors may still find them attractive. In spite of this it is still important to have an expert opinion just to be sure that the coin meets all the aspects mentioned above.

If you don't have a background in grading coins, then it is really important to have an expert help you when it comes to your coin collecting. At the very least it is important to educate yourself regarding grading coins as much as possible so that you can make informed purchases.