Tips for Purchasing Coins Online

 

First and foremost, research the reputation of the seller. This should go without saying, but eager buyers continue to be ripped off by a few people who are eager to dump their cleaned and damaged junk onto the unsuspecting, despite having been called on it multiple times by former customers. Most auction sites have the ability to review sellers and to read other buyers’ reviews.

Secondly, read and understand the seller’s return policy. If the coin in hand does not look like the coin in the photographs online, what can be done to rectify it? Will you get a full refund? Who pays shipping costs?

Thirdly, closely examine the photos of the coin. Photos should be straight on, not at an angle. Some sellers hide hairlines (signs of cleaning) and other problems by shooting the photograph at a sharp angle, causing the light to reflect differently and the hairlines not to show. You could request a different photograph from the seller, or you could simply move on to the next coin.

Fourthly, consider that many rare, or “key,” coins are being counterfeited in large numbers, mostly in China. It is a problem as old as money itself, and online auction sites are rife with counterfeits. Inexperienced numismatists can get excited over the cheap 1916-D mercury dime and think they’ve scored an auction win, only to send it off for grading and have it returned as a counterfeit. Therefore, as a rule, when buying key coins, only buy those certified and encapsulated by a reputable third party grader.

Lastly, avoid online coin sellers who claim they do not know anything about the coin, or coins in general, or are merely settling an estate. As a rule of thumb, these people do know, in fact, something about coins and use ignorance to create a layer of plausible deniability for when their problem coins are discovered.

While most people reading this have probably heard these bits of advice before, it never hurts to revisit the basics. Famous football coach Vince Lombardi used to begin each season by introducing himself to that year’s team of professionals by holding up a football and announcing, ”Gentlemen, this is a football.”5 Many were undoubtedly shocked or perhaps insulted that he would assert something so basic to a group of professionals. Lombardi’s position, however, was that each season he began with the most basic elements of the game. Instill excellence In the fundamentals. He believed without mastering those fundamentals, his team could never hope to achieve greatness. In the same way, numismatists should master these fundamentals and periodically review them.

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The 12 Different Types of US Coins

 

The United States coinage has evolved alongside the country’s long and diverse history.

Whether you are new to collecting or are just curious, learning about the types of US coins is exciting. It reveals an interesting aspect of our history, culture and heritage. If you are a collector, familiarizing yourself with these coins can help you organize your hobby in a way that allows you to collect the most valuable coins.

A Brief History of United States Coinage

Congress passed the Coinage Act of 1792 to create the country’s first mint in Philadelphia. The early currency, particularly the dollar, was pegged to the Spanish milled dollar. The result was three distinct coin categories, i.e. copper, silver and gold.

That said, our country’s history of circulating coins can be traced back to long before we had an official mint. Before the Philadelphia facility, people used foreign and locally made coins. Spanish milled dollars, German thalers, British pounds, and other smaller coins made by the various colonies were primarily in circulation during the Colonial Period. Following the Revolutionary War, the Articles of Confederation allowed the various states to create their own coins and coinage system. However, this liberal idea led to a lot of confusion and made inter-state trading cumbersome, as the same coin would be worth a different amount from one state to another.

The passage of the Coinage Act sought to end this confusion by establishing a national coinage that all states would use.

Here are the 12 different types of US Coins...

1. Half Cent

• The half-cent was the first and smallest currency the United States Mint struck after introducing the Coinage Act in 1792. First produced in 1793, half cents were made from copper at the Philadelphia facility.

• Production of half cents continued until 1857, when a congressional act stopped further minting of these coins.

• Because most of the early dies were handmade, United States half-cents have more varieties and errors than any other coin in the country’s coinage history.

2. One Cent

• The next coin to be launched in 1793 after the passing of the Coinage Act of 1792 was the one-cent coin, later known as a penny.

• Like the half-cent coins, cents have numerous varieties and errors as they were struck from unique, handmade dies.
• Starting in 1856, the mint adjusted the size of the one cent, opting for a smaller penny due to the rising cost of copper. The Mint struck its first cupro-nickel penny with a smaller diameter in 1856.

3. Two Cents

• In 1864, a Congressional Act changed several features of the one-cent coin, including the metallic composition and the weight. This same Act also introduced the two-cent coin.
• The United States two-cent coin was struck from 1864 to 1872. The coin bears a shield reverse resembling that of a five-cent coin. It is among the coins with the shortest lifespan in our coinage history.

4. Three Cents

• The United States Mint introduced the three cents coin in 1851, the smallest coin by size in the country’s coinage history.

• Until 1853, the three cents, which measures 14 millimetres in diameter, was struck in 75 per cent silver. The Mint then changed the coin’s composition to 75 per cent copper and 25 per cent nickel due to the skyrocketing prices of silver.

• The new copper-nickel three-cent coin was also enlarged to measure 17.9 millimetres in diameter. 

5. Five Cents (Half Dimes and Nickels)

• Half dimes were among the earliest coins struck after the Coinage Act of 1792. The Mint produced these silver coins until 1873.
• Faced with high silver prices, the Mint halted production of silver half dimes in 1866, replacing them with five-cent coins, aptly known as nickels.

• Nickels are still in production, with the most current being the Jefferson nickel with a large portrait on the obverse and the new Monticello on the reverse.

6. Ten Cents (Dimes)

• Also known as dimes, ten-cent coins were among the Mint’s earliest currencies. Struck in 1796, the dime is still in use today despite undergoing numerous design changes.
• The ten-cent coin closely resembles the half-dime design. These coins were struck in silver until 1964 when copper and nickel replaced silver as the metal of choice for coin production.

To continue learning about the 12 different types of US coins click here... to view the other six coins.

Counterfeit Recognition: How to Tell if Money Is Fake

 

Counterfeiting money is a crime, there is no doubt about it. And, like any other crime, it is present in our society. It's not only the police's or National Bank's job to look after the validity of banknotes; it is our duty as well. That's why we deem it highly important to know how to tell if money is fake.

In order to avoid being victims of counterfeiting money, we could use some knowledge and tricks to tell us if the money is fake. We don't have to be professionals, but we all know how money banknotes look.

How Does Counterfeit Work?

Each paper note has a denomination, text, watermarks, inks, and other details. US banknotes are made from note paper - a blend of cotton and linen. Based on those characteristics, there are several ways to tell if a bill is genuine or counterfeit.

Fake bills can be done with a lot of precision, but there are always ways to check. Your gut sending you red flag alerts is a reason enough to do a quick test of the bill. People who work retail usually have this feeling and know how to tell if money is fake. They present a huge and essential dam against counterfeiting. Fake bills show up in different denominations, and unfortunately for businesses, it often goes unchecked. Money laundering is a process of bleaching authentic bills with smaller denominations and printing them to look like $50 or $100 notes.

However, the counterfeiters figured out that the suspicion a retailer might have towards a $100 bill disappears when a smaller note is in question. US officials seized around $1 million in fake one-dollar bills in 2019.

Since there is no way to stop the attempts of creating fake bills, we - the workers, citizens, and business owners - need to be on the lookout for these forgeries.

Color-Shifting Ink

Crime amateurs won't fall for this one, but if we want to rule out forgery, we have to check if the bill denomination on the bottom right-hand corner has color-shifting ink. Every produced bill since 1996 has this trademark.

To check if what you have is a counterfeit currency, tilt it from side to side and look at the number in the upper right corner. The color of the number should change as you shift the bill.

Check the Watermark

Watermark is embedded in the paper to the right of the portrait. You can see it from both sides of the bill, but testing the authenticity will require holding the bill against some source of light. Also, if the watermark is a face, it should match the portrait of the bill.

It is not unusual for counterfeits to bleach bills with smaller denominations and reprint them with higher values. They are easily exposed upon authentication because, in that case, the face doesn't match the watermark.

If there aren't any watermarks - that's an easy indicator that the money is fake. Similarly, if you can see a watermark without the light source, that is proof of counterfeit.

Any Kind of Blurryness is a Red Flag

It is as simple as this: if you notice blurry borders, printing, or text, you are looking at signs of dealing with fake money. Authentic bills are highly detailed, with precise lines, dots, and negative space. There is nothing blurry on an original banknote.

When it comes to this item of a counterfeit check, the first thing you are going to check is note borders. All you need is a magnifying glass and a good sight. Microprinting on the note borders must be readable using this tool. If you can not read it - it's a fake!

Raised Printing

Not everything is tested by sight. If you want to know how to tell if money is fake, you need to open your senses. Use your sense of touch and figure out whether you're holding the real or the fake one.

When you run your fingernail down the note, you should feel some vibrations on the nail from the ridges of the raised printing. This is the result of the uniqueness of the paper and the intaglio printing process. The lack of vibrations should ring a bell, and you should further inspect the bill.

Security Thread with Microprinting

The security thread consists of a thin ribbon threaded through the note's paper. The material of the thread can be made out of plastic or metal foil, and the thread itself can contain engraved text or numbers.

Like a watermark, once you hold up the banknote to the light, the strip should appear in the form of a solid line. Each line has USA and the denomination number printed in letters. For example, the $5 bill will have USA FIVE.

Not every USD note has a security strip in the same area. For example, you can find it to the right of the portrait on the $10 and $50 bills. In contrast, the thread is located on the left of the portrait of the $5, $20, and $100 bills.

Ultraviolet Light

Ultraviolet flashes are accessible, you can easily buy them and many businesses provide them for their floor workers. The ultraviolet glow is a great tool for telling if money is fake.

Real money will not glow under ultraviolet light, rather only the security threads will. The one-dollar banknote is unique, as it has no thread and thus has no glow.

Each denomination thread will glow a different color - $5 has blue security fibers, $10 glows orange, $20 has green fibers, $50 glows yellow, and $100 will be red.

What to Do in Case of Counterfeit Recognition?

There are probably thousands of counterfeit bills in circulation right now, and many retail workers are, unfortunately, held accountable for this misfortune. Knowing how to tell if money is fake is not only a matter of national economic security, it is about safeguarding businesses and jobs of the people who work at the counters.

If you spot counterfeit bills, don’t put yourself in danger. Don’t check the bills in front of the person that gave them to you, don’t yell at them, and don’t try to catch them yourself. Observe a person who gave you the counterfeit notes - everything from facial features to a license plate number, but from a safe distance. After you’ve acquired information about the potential fraudster, hold on to the note and check the above mentioned items. After you’ve established that your suspicions are reasonable, contact the authorities. Treasury suggests contacting the local US Secret Service office along with local police. Source

Why Are Some Coins Painted Red?

  

 

Some junk silver coins are painted red. Junk silver quarters and junk silver dimes can be painted red. These coins were painted red so that a business owner could put them in the juke box and get their coins back when the money was collected. 

Collecting U.S. Coins

 

Collecting U.S. coins is a popular numismatic pursuit, but deciding exactly how to collect them is not necessarily an easy task. Our nation's rich history and the eclectic artistry of its coinage have inspired many different approaches to collecting, with each option having a distinctive appeal.

Assembling a collection by denomination provides a nice overview of 200+ years of U.S. regular-issue coinage. Some denominations are familiar - cents, nickels, dimes and quarters are used every day. Others, like half dollars and dollars, are elusive, but still contemporary. Obsolete fractional issues, such as the once-popular half-cent, the Civil War-era 2-cent piece, the surprisingly useful 3-cent coin, and the short-lived 20-cent piece, are charming in their eccentricity.

Most U.S. denominations have experienced changes in their physical characteristics over time, and those variations can be the basis for collecting by size and composition. Dollars are a great example: during the 19th century, there were standard silver dollars, slightly larger Trade dollars and tiny gold dollars. In the 1970s, large copper­-nickel dollar coins were replaced with a smaller version, and those, in turn, gave way to this century's golden dollars (golden in appearance, not content).

Other denominations have been modified as well. There are large cents, and there are small cents. Three-cent pieces and 5-cent coins come in both silver and copper-nickel versions. Dimes and quarters switched from silver to copper­ nickel in 1965; half dollars did the same in 1971 after a brief, interim period of 40-percent silver.

Of course, money is more than just metal, and collecting by design type embraces the diversity of American coin design. A "type" is defined by its major motif, for example, Indian Head cents, Barber dimes or Peace dollars. The 18th, 19th and 20th centuries already offered an abundance of "types," but during the 21st century, state, territorial, and national parks quarters, and Sacagawea, Native American and Presidential Dollars, have taken design diversity to an entirely new level.

Where a type collection includes exactly one coin of each design, collecting by subtype involves multiples. Consider the Lincoln cent, which is fertile ground for subtype collecting. Over the course of more than a century, our most common coin has been made of bronze, zinc-plated steel, brass and copper-plated zinc. And it's had seven, different reverse designs—four in 2009 alone.

Subtypes can also be defined by partial design changes. For example, the word "CENTS" was added to the Liberty Head nickel in 1883, and there are "raised mound" and "recessed mound" Buffalo nickels of 1913.

Going beyond types and subtypes is the approach of concentrated collecting. The idea is to choose a compact set of coins that includes every major subtype within a series, every decade of the series' lifespan, and every mint that coined the series. For any series, there are many different ways to create a concentrated collection. For example, the following three coins constitute a concentrated collection of Standing Liberty quarters: 1917-D (Type 1), 1925(-P) and 1930-S. Alternatively, a 1917-S (Type 1), 1924-D and a 1930(-P) would serve the same purpose, as would a 1917(-P, Type 1),1927-D and 1930-S.

Countless other combinations are possible. Whatever specific pieces you choose, concentrated collecting allows you to capture the essence of a series with a small number of coins.

Learn more on this topic here...

History of the Panamanian Balboa: From Past to Present

 

Are you captivated by the allure of currency history and the stories embedded within each coin? Got a collection of coins from every nook and cranny of the globe? The official currency of Panama has a long and rich history spanning over five centuries, dating back to the time the first Spanish explorer, Vasco Núñez de Balboa, set foot on the isthmus of Panama. 

First things first – Why is Panama money called balboa? Well, the national currency of Panama, the Panamanian balboa, is named after Vasco Núñez de Balboa – the Spanish explorer who discovered the Pacific Ocean in 1513 after crossing the isthmus of Panama.

He was the first European to see the vast body of water that separates North and South America from Asia, claimed it for the Spanish crown, and established the first permanent European settlement in Panama, Santa María la Antigua del Darién. Balboa’s discovery opened the way for international trade and colonization in the region, and he became the governor of the province of Panama.

1904 – The Cornerstone

His legacy is honored by the Panamanian people, who adopted his name for their currency in 1904 when Panama gained its independence from Colombia. The balboa replaced the Colombian peso, which had been the official currency of Panama since 1821 when Panama joined the Gran Colombia, a federation of former Spanish colonies. The balboa was equivalent to the US dollar right from the start and backed by silver coins minted in Panama.

As liberty prevailed, the wave of change brought forth the debut of fresh silver coins in values of 2 1/2, five, 10, 25, and 50 céntimos. Subsequently, the currency expanded to encompass denominations of one-tenth, one-fourth, one-half, 1 1/4, and one céntimo. These Panamanian coins not only mirrored the size but also replicated the metallic composition akin to those found in the coinage issued by the United States, adding a fascinating layer to the evolving currency landscape.

The Dual Currency System

The Panamanian balboa is part of a unique currency arrangement that allows Panama to use both the Balboa and the US dollar. This system, known as the dual currency system, was established in 1904 when Panama signed a treaty with the United States and adopted the US dollar as its legal tender, granting the latter the right to build and operate the Panama Canal – a strategic waterway that connects the Atlantic and Pacific oceans.

In exchange, the US agreed to provide Panama with economic and military assistance and to guarantee its sovereignty and independence. The dual currency system has several advantages for Panama, such as:

• It facilitates financial transactions and international trade with the US and other countries, as the US dollar is widely accepted and trusted around the world and considered a "safe-haven" currency.
• It eliminates the risk of currency exchange rate fluctuations and currency devaluation, as the Balboa is pegged to the US dollar at a fixed rate of one-to-one (1:1), with the dollar being a reliable currency.

However, it also has some drawbacks, such as:

• It limits the autonomy and flexibility of the Panamanian government to respond to economic shocks or crises, as it cannot use monetary policy tools such as interest rates or inflation targets to adjust the economy.
• It exposes Panama to the economic conditions and policies of the US, as any changes in the US dollar’s value or demand can affect the Panamanian economy.
• It creates a dependency on the US, as Panama has to rely on the US for its currency reserves and liquidity.

Despite these challenges, the dual currency system has proven to be successful and beneficial for Panama, as it has contributed to its economic development and annual growth.

The Rise and Fall of the Balboa Banknotes

The Balboa coins enjoyed a period of stability and popularity until the 1930s when the global economic crisis and the devaluation of the US dollar affected the exchange rate and the value of the Balboa. The Panamanian government, with President Dr. Arnulfo Arias, decided to introduce paper money, or banknotes, in 1941, which were also equivalent to the US dollar and issued by the Banco Central de Emisión de la República de Panamá.

The banknotes were printed in denominations of 1, 5, 10, 20, and 50 Balboas and featured the portraits of prominent Panamanian figures. However, the banknote issue was short-lived. A mere week later, a military coup ousted Arias from power, replacing him with Ricardo Adolfo de la Guardia Arango. The Banco Central de Emisión was dissolved in 1949, and all Balboa banknotes were withdrawn from circulation.

The remnants of these banknotes are now rare treasures, known colloquially as the "Seven Days’ Notes" or the "Arias issues," and hold significant value among collectors to this very day.

The Pulse of the Panamanian Economy

The Panamanian government faced several political and economic challenges in the following decades, such as corrupt governments, fraudulent elections, military coups, and US interventions. The Balboa coins remained in use, but they were overshadowed by the US dollar, which became the dominant currency for daily transactions and international transactions.

Throughout this period, Panama continued to use U.S. banknotes alongside the Balboa, emphasizing its strong economic ties with the U.S. Wondering what currency is mostly used in Panama? The Balboa coins are mostly used for small change and everyday transactions, while the US dollar is used for larger purchases and savings. Panama's economy relies predominantly on the services sector, constituting nearly 80% of its GDP.

What about the modern times? In the third quarter of 2023, Panama's economy showed significant growth, expanding by 9% compared to the previous year. Looking at the broader trend, the country's Gross Domestic Product (GDP) Annual Growth Rate has seen an average increase of 5.91% from 2010 to 2023.

Notably, the second quarter of 2021 witnessed a remarkable high with a growth rate of 43.90%, while the second quarter of 2020 experienced a record low with a decline of -36.20%. These figures reflect the dynamic nature of Panama's economic performance in recent years. 

The Features of the Panamanian Balboa

The Panamanian balboa currency code is PAB (numeric: 590) and is composed of coins in denominations of 1, 5, 10, 25, and 50 cents or 100 centésimos, and 1 and 2 Balboas. The coins are issued by the National Bank of Panama, one of the two public banks in the country since Panama has never had an official central bank. The coins are mostly used for everyday transactions, such as buying groceries, paying bus fares, or tipping service workers.

What does Panamanian balboa look like? The Balboa coins have various designs and motifs that reflect the historical significance and national symbols of Panama, such as the bust of Vasco Núñez de Balboa, the namesake of the currency, on the obverse of the 1 Balboa coin, and the coat of arms of Panama on the reverse.

The Panamanian balboa does not have any banknote issue, as the US dollar is used for large transactions and international transactions. The US dollar bills circulate freely in Panama and are accepted by all businesses and institutions. The US dollar bills are also known as private currency, as the Panamanian government does not issue them, but by the Federal Reserve System of the US. Source

Mint Marks

 

Mint marks are letters that identify where a coin was made. They hold the maker responsible for the quality of a coin. When the U.S. used precious metals such as gold and silver to make circulating coins, a commission evaluated the metal compositions and quality of coins from each of the Mint facilities. The evaluations ensured that each facility produced coins to the correct specifications.

Philadelphia was the only branch in operation in the Mint’s earliest years, so identifying the sources of a coin was not necessary. A March 3, 1835 Congressional Act established mint marks in the United States, along with the first Mint branches. When the Mint branches in Charlotte, Dahlonega, and New Orleans opened in 1838, mint marks made their first appearance on U.S. coins. However, the practice of not identifying Philadelphia’s coins continued even after the first branches were established.

This changed in 1942. When nickel was removed from five-cent coins during World War II, the “P” mint mark first appeared on coins produced in Philadelphia. The mark’s position also moved from the right of Monticello to above the dome to indicate the new metal composition. After the war, when use of the regular alloy resumed, the mint mark returned to its former position and the Mint no longer used Philadelphia’s “P.”

In 1979, the Susan B. Anthony dollar coin was introduced. Once again, the “P” mint mark appeared. The following year, the “P” appeared on all of the denominations except the cent, which still holds true today.

Mint Mark Facts

No mint marks appeared on circulating coins from 1965 to 1967. The Coinage Act of 1965 eliminated mint marks to discourage collecting while the Mint worked to meet the country’s coinage needs.

Mint marks were placed on the reverse of coins until 1968 when they moved to the obverse.

The San Francisco Mint made circulating coins with the “S” mint mark from 1854 to 1955. After that, they produced “S” circulating coins from:

• 1968-1974: pennies
• 1968-1970: nickels
• 1979-1981: dollars

In 1968, proof coin production moved from the Philadelphia Mint to San Francisco and proof coins gained the “S” mint mark.

The West Point Bullion Depository made circulating pennies from 1973 to 1986 and circulating quarters in 1976 to 1979. The San Francisco Mint also produced circulating pennies around this time. These coins did not have mint marks so that they couldn’t be distinguished from Philadelphia coins.

In 2017, the “P” mint mark appeared for the first time on circulating pennies. This change was only for the 2017 issued cents, in honor of the U.S. Mint’s 225th anniversary.

In 2019, the “W” mint mark appeared for the first time on a circulating coin. The West Point Mint produced 10 million quarters in the 2019 America the Beautiful Quarters Program.

Most medals don’t have mint marks. The Philadelphia Mint makes Congressional Gold Medals and their bronze duplicates, Presidential Medals, and most others. But for certain numismatic silver medals, other Mint facilities may help. The Mint places the mint mark on some of these medals for marketing reasons. The mark can be on the obverse or reverse side, depending on how it fits into the design.

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