The systematic accumulation and study of coins, tokens and paper money is one of the world’s oldest hobbies. To the uninitiated, coin collecting may seem like a strange, even confusing, activity. But if you take the time to familiarize yourself with a few key coin collecting definitions, you can quickly become comfortable in this exciting pastime.
Composition
A coin’s composition is the mixture of metals used to make it. The most common composition is silver, but many coins are composed of other metals as well, such as copper, gold or nickel. A coin’s composition is an important factor in its overall value and condition.
Grading
A grading system established by the American Numismatic Association that evaluates a coin’s condition. A coin’s grade is based on a number of criteria, including strike, luster, detail of the date and mint mark, scuffs, hairlines, defects and overall eye appeal. The skill of grading a coin requires years of practice and viewing a large number of coins.
Rarity
A numismatic term for a rare coin that is difficult to obtain. It is often the most expensive coin in a collection. Also called a type coin, specimen coin or error coin.