An understanding of the long history of coin collecting, once known as "the hobby of kings," will make this pastime even more enjoyable. The history of gold coins dates as far back as 2,700 years ago. The first gold coins in the world were issued in Lydia around 640 B.C. certain internet websites will provide you with a lot of information about the history of gold coins. Gold coins are a favorite of coin collectors with an eye toward investment. How would you feel if you knew that you had handed over a penny worth $2,000 or more as change for a dollar?

Although the aesthetics may change, price does not. The value of your coins stays the same regardless of colour. Coin collecting, or numismatics is a hobby as old as time. As a hobby, it has been around for more than 2,500 years. This is surprising since the use of coins has been around for pretty much that same amount of time too.

Gold coins, for instance, are very popular indeed with investors. They not only have a collectable value associated with them but also the value of the precious metal itself that will never depreciate by very much.

Commemorative coins are a popular form of collection, as are rare minted coins like those which had an error in their stamping. If a certain set of coins doesn't interest you, it won't be any fun at all to become a collector. If you have a long-term relationship, however, the margin does not need to be as high for the coin dealer to make a good profit.

How to Earn Your Coin Collecting Merit Badge

There is more to coin collecting than just keeping coins. There is something at stake for those who make an effort to know what they are collecting: the Coin Collector's Merit Badge.

A person who wants to acquire a merit badge must prove himself to be someone who knows a lot about coins. Here are some of the things that a coin collector must know in order to earn the Merit Badge.

1. The Grading Scale

Merit badge aspirers must be very knowledgeable about the different grades of coins. They must master how to assess coins and categorize each coin as:

- Poor - Fair - Good - Very good - Fine - Very fine - Extremely fine - Uncirculated.

They must also present five examples for each of the categories given above.

2. Coin Terminologies

Coin collectors must familiarize themselves to coin terms such as ?encapsulated? coins, ?proof? coins or legal tender to get the merit badge. They must be able to determine if coins are ?buzzed? or ?whizzed?.

They must also show competency in explaining the following:

- Clad - Date set - Observe - Reading - Reverse - Type set

3. Coin Storage

For a coin collector to achieve a merit badge, it is important that he knows how to take care, store and preserve coins.

There are so many different kinds of rare coins to collect, ranging from gold bullion coins to ancient Roman coins, that it is impossible to be a true expert in all of them. You'll want to find a merchant that specializes in the particular area that is of interest to you.

Ancient kings (and even today's leaders) had a telling habit of having their faces imprinted on their currency.

The Philadelphia mint used no mint mark until 1980, when it started stamping coins with tiny P's. Yet somehow, a small number of dimes minted in 1982 were a throwback to the time before the mint mark, and bear no letter P.

The American Gold Eagle stands out among other bullion coins because of its lovely design, and because its value is backed by the full strength of the United States government.

Within one hundred years, the concept of coins had been adopted by all of the major trading cities in the civilized world. For most gold coin collectors, there are the highly coveted rare gold coins and a lot of gold coin collectors are interested in these rare gold coins that they will offer high bids just to be able to get their hands on these.

The best way to get good deals, and avoid the bad ones, is to pick up some standard reference catalogues and study the pricing very carefully. As a rule, it's better to own one high quality coin than a bunch of mediocre ones. You will need someone to buy the coins from, and it can be difficult to find a reputable coin dealer. Someone who has been coin collecting for years can help you choose a knowledgeable and honest coin dealer. You'll need to learn about the value of different coins.

Coin collecting for investment purposes can be a tricky endeavor.

Coin collectors must be able to demonstrate thorough knowledge in coin collecting by showing the councilors different methods of coin storage. It is expected that the advantages and disadvantages of the methods will be provided as well.

4. Coin Anatomy

Knowledge of the parts of the coins will give important information. That is why coin collectors who want a merit badge must know where the mint marks are located in various coins and they must also know where to look for the initials of the coin designer.

5. Miscellaneous things about coins

The councilors will be very pleased to hear stories about what you have learned about coins. These recollections may come from reading coin journals, attending workshops or seminars, joining a coin collectors? club, or visiting mint facilities.

It is also expected that coin collectors know a lot about coins from other countries as well.

6. Counterfeit coins

A coin collector must have a perception of whether a coin is authentic or counterfeit.

Reading coin guides or interviewing personnel from mint facilities will be a help in this situation.

After knowing these things, you are now equipped with the knowledge needed to be worthy of the coin collectors? merit badge.

A numismatist holds an ancient coin that has passed through dozens or hundreds of hands throughout the millennia. In medieval times, the collection of ancient coins was already popular, but it was known as a hobby for kings.

An avid coin collector will be able to tell you virtually every piece of history that surrounds any coin in their collection both because they tend to specialize and because knowledge is one of the most important factors when it comes to starting and maintaining a collection of any value or worth.

Perhaps one day the coin you bought last year will have gone up in value, but the idea is to buy it so you can enjoy it now, and for as long as you own it.

The price for a coin is determined by the demand for this coin. Many factors affect this demand. If a coin is rare, chances are, it is in great demand. State coins can appreciate in value if you know what to look for.

Other than printing problems, another reason why rare coins can be minted is when the wrong precious metals are used to make the coins.

The internet is home to a lot of gold coin dealers wherein you can meet all sorts of people from all over the world who are into both buying and selling gold coins. Always be on the lookout for rare gold coins, and have coins appraised by a gold coin expert to avoid large differences in price. You can get a silver locating device or a magnetic pole for finding loose coins in ditches, under cars, or in other hard-to-reach places. Or simply rely on your eyes to identify those gleaming metal circlets of potential wealth.

During the Renaissance, popes and nobility began collecting coins for their artistic and historical value, and the name "the hobby of kings" was born.