Ancient Coin
Reference to any coin issued before A.D. 500.

Blanks
Pieces of metal intended for coinage but not yet struck.

Border
A protective periphery within the raised rim of a coin; composed of either radial lines or beads.

Brilliant
Untoned, without tarnish or oxidation, and preserved with original cartwheel (frosted) or proof-like lustre. A copper coin is considered brilliant if it retains full original red. A silver, nickel or gold coin is usually considered brilliant in the absence of toning or oxidation (although it may have some spots or light toning hues about the periphery) and if its original lustre is considerably intact.

Brilliant Uncirculated
A generic term applied to any coin that has not been in circulation. It is often applied to coins with little 'brilliance' left, which should be properly described as simply uncirculated.

Bullion
Precious metal in a tradable form - like a bar, plate or ingot - and occasionally struck into a coin or jewellery.

Bullion Coin
Coin with little numismatic value sold for its precious metal content and traded at the current bullion price.

Circulated Coin
A coin used commercially and therefore suffering from wear and tear; a used coin. The grade is primarily an indication of how much wear has occurred and generally does not take into account the presence or absence of dings, scratches, toning, dirt or other foreign substances. Grading ranges from good (traces of wear on a coin with nearly full lustre and no major discrediting contact marks) to poor, filler or cull (barely recognisable). The obverse side often determines the overall grade. An intermediate value may be appropriate when the difference is significant, especially if the reverse side has a lower grade.

Coin
A piece of metal intended for use as legal tender and stamped with inscriptions and exact monetary value. Issued by an authority (often a government or bank) that guarantees its weight and purity.

Commemoratives
Coins issued by the Government to celebrate and honour important events, anniversaries, etc. These coins are extremely popular among collectors.

Currency
Refers to coins and paper money that are legal tender. However, many people use the word 'currency' for paper money only.

Denomination
Face value of a coin or paper note; the exact monetary value that is marked.

Device
The main design - such as a portrait, shield or heraldic emblem - on the obverse of a coin, token or medal.

Die
An engraved metal punch used to strike coins.

Edge
The depth/surface perpendicular to the obverse and reverse, regarded as the third side of a coin; not to be confused with rim (raised border of the coin). Edges can be plain, lettered or milled (with repetitive device).

Face
The front of a coin or currency note, usually the side with signatures, honorary emblems, portraits, etc.

Face Value
The value of a coin or paper money as imprinted or marked on that unit.

Field
The flat, undetailed part of a coin's surface between the raised designs, including the date. Quantity of the field is very important to numismatists as an aid to grading coins.

Fine Gold
Unadulterated pure gold.

Fineness
Degree or grade of the purity of precious metals, either in monetary or bullion form. Most forms of precious metal require an additional metal to provide a durable alloy. Often stated in terms of purity per 1,000 parts. For example, a .925 fine silver coin has 92.5% silver and 7.5% other metal.

Flow Lines
Microscopic linear marks on a coin surface caused by the movement of metal under striking pressure.

Frost
An intense lustre (not mirror-like) caused by striking a coin with sandblasted dies.

Hairlines
Tiny scratches on a coin, caused by cleaning or poor storage, an abundance of which can reduce the coin value.

High Relief
A coin with deep concave fields due to a highly raised design. High relief coins require extra pressure to be fully struck and are difficult to stack.

Legend
The main inscription on a coin.

Lettered Edge
The edge of a coin with an inscription around it.

Low Relief
A coin with a shallow and relatively flat field.

Lustre
Brightness or brilliance of a coin's metal. Coin lustre is affected by wear, handling, polishing of dies or planchets, exposure to chemicals, humidity, and extreme temperatures.

Mint Set
A set of uncirculated coins from a particular year comprising coins from each mint.

Mint State
The term corresponding to the numerical grades MS-60 through MS-70, used to denote a business-struck coin that has never been in circulation. A Mint State coin can range from one that is covered with marks (MS-60) to a flawless example (MS-70).

Mint Mark
A letter or symbol indicating the mint of origin.

Numismatics
The science, study or collection of coins, paper money, tokens, medallions and similar objects.

Obverse
The front or face of a coin which bears the principal design or device, often prescribed by the issuing authority (i.e. Coat of Arms).

Planchet
The blank disc of metal that is struck by a coining press, transforming it into a coin.

Proof Coins
Proof coins are made from carefully selected coin blanks and dies that have been polished to achieve a full mirror-like tarnish. The relief of the dies is sandblasted to a matte finish to give it a 'frosted' look. Proof coins with their flawless mirror finish are considered the most valuable collector coins.

Proof-Like Coins
A coin that received special minting treatment and has the mirrored surface prized by collectors, but with minor imperfections due to the minting process. Proof-like coins are considered to be inferior to full proof coins, but superior to regular brilliant uncirculated (BU) coins, which is the normal quality of freshly minted circulation coins.

Relief
Any part of a coin's design which is raised.

Reverse
The back of a coin, usually opposite from the portrait or date.

Rim
The raised border around the circumference of a coin, not to be confused with the edge.

Series
Related coinage of the same denomination, design and type, including modifications and varieties of design.

Sterling Silver
Silver that is .925 fine, or possesses a silver content of 92.5%.

Token
A piece of specially marked durable material unofficially issued for monetary, advertising or other purposes within restricted circulatory zones.

Uncirculated Coin
Coins with no wear at all are referred to as uncirculated, or in Mint State (MS). They are manufactured in much the same way as circulated coins except more attention and time is given to the preparation of the die surface finish. The coins are also struck with greater pressure to improve the sharpness of the design. MS-60 to MS-70 classifications are used for Mint State coins.

Classification Details
(MS-70) Criteria include lustre, size and location of any hairlines and the quality of the strike and overall eye appeal.

(MS-65) Criteria include brilliant cartwheel lustre (attractive toning is permissible); at most a few inconspicuous contact marks, no hairlines, and nearly complete striking details.

(MS-60) Criteria include having dull lustre and numerous contact marks in prime focal areas, as long as there is no wear.

Uncirculated Set
Set of one of each coin issued for circulation, usually in a series. Also called 'uncirculated mint set', or unofficially, a 'mint set'.

An Introduction to the Art of Coin Collecting

Numismatics is an intellectual hobby. It is the study or collection of coins, tokens, paper money, and sometimes related objects such as medals.

If you have considered only the investment merits of collecting coins, think about the other attributes and pleasures that this fascinating hobby entails.

Coins - both ancient and new - are indeed instructive and entertaining. The engraved images on coins depict significant personalities and chronicle important social, religious and political milestones throughout various countries and eras. Numismatics is far from being a mindless pursuit. A passionate numismatist will delve into research and rediscover ancient worlds. Even newer items provide enlightenment and are highly recommended for young and old alike.

How to Start a Coin Collection

The new hobbyist should start with a single, meaningful theme to which he can relate. One may diversify into regional or universal themes such as 'Famous Personalities of the 20th Century', 'Chinese Lunar Series', or 'Endangered Wildlife', or may focus on ancient or modern coins (gold, silver, proof), etc. The latter are likely to be encased in bulky boxes meant to preserve mint condition for years. Meticulous care and storage are crucial.

Coin collecting is a hobby suitable for all ages. It is ideal to start young so that you have enough time to research and accumulate an excellent collection.

It has been said that patience and interest are all it takes to make a profit. Patience, however, can mean anything from two to 20 years. It is true that coin collecting can be profitable - but only with the right coin and only over a long period of time. This explains why collectors regard rare coins as a legacy to be inherited by future generations.

What Constitutes the 'Right Coin'?

Proof coins appreciate much faster in value compared to uncirculated coins because they always come from a limited mintage. They possess face value and are struck on highly polished, mirrored surfaces. Proof and circulated coins are valued for their numismatic appeal by collectors, meaning a coin's historical value overrides its intrinsic worth.

Commemorative and bullion coins also make safe investments due to the pureness of their gold or silver content. All bullion coins have a face value stamped upon them.

Other Criteria in Selecting Coins for Investment

Designs: Symbols for good luck and fortune appeal to many Asian collectors, especially the Chinese. Historical personalities, events, symbols, etc. have their own following.

Themes: Many collectors prefer to acquire a complete series and will buy coins with similar themes.

Age and Rarity: Generally, the older and rarer the coin (i.e. small limited mintage), the more valuable it is.

Coin Condition: This varies from good to extremely fine. Preserving your collection in mint condition is crucial if these coins are to be resold at a good profit.

'Odd Coins': In spite of the stringent quality controls at most modern mints, imperfect coins occasionally slip through. In the eyes of dealers and collectors, some oddities deserve a premium.

What to Watch Out For

When starting a collection, avoid being fooled by common, poor grade coins, 'repaired' or 'improved' coins, and fakes. These are junk coins that will not appreciate in value even after decades. If you are planning to invest in coins, buy rare types that are in good condition. These coins are likely to appreciate and ensure a healthy profit should you ever decide to sell.

Most coin dealers are honest businessmen with a strong commitment to their regular customers. However, watch out for the following unethical practices:

Overpricing: Dealers make a profit from each sale, but be wary when they offer their coins at prices considerably above market trends. To avoid this, compare prices between different coin dealers. This will ensure the premium charged is not exorbitant. Don't just compare prices, though. Scrutinise the quality. Coins that seem similar may vary greatly in condition and value.

Overgrading: Since the grade of a coin is a major factor in the final evaluation, some coin dealers overgrade their collections. Few collectors are grading experts and are easily duped, especially with rare, ancient coins.

'Improved' Coins: Unethical dealers may attempt to improve the appearance of old coins in order to pass them off as high-grade coins. Such improvements are almost always detectable by coin experts. To a numismatic connoisseur, an altered coin (which may appear superficially more attractive) is worth less than a coin in its original condition.

Whizzing: Whizzing is a form of coin polishing using a high-speed polisher. Since coins with a bright, lustrous finish are graded higher, dull coins are occasionally whizzed to remove faint scratches and achieve a superficial, well-preserved finish. However, whizzing leaves buffed marks on the coin. It also erodes the highest points of the image on the coin. This can be detected by the trained eye of an experienced numismatist or dealer.

Dipping: Dipping is a common practice in the industry wherein experts dip a coin without leaving a mark or reducing its value. Incorrect dipping, however, can diminish the coin's lustre.

'Toning': Silver coins that have been stored in canvas bags, paper envelopes, or coin rolls for long periods of time often acquire a beautiful tarnish or 'toning'. This toning can be extremely attractive and valuable - consisting of an array of rainbow colours. Do not be deceived into thinking your collection of 'tarnished' coins is not valuable.