Coin Collecting Merit Overview In This Merit Merit Answer Guide Lessons 1 5 MLR* 2 Parts of a Coin MLR 5 Parts of Paper Currency *MLR: Merit Lesson Resource Teaching This Merit Lesson 1 covers Requirements 1, 2, and 3. Lesson 2 covers Requirements 4, 5, and 6. Lesson 3 covers Requirement 7. Lesson 4 covers Requirements 8, 9, and 10. Lesson 5 covers Requirements 11 and 12. Possible Field Trips Meeting of a local coin club Coin dealer Coin show Other Sources Books The Standard Catalog of World Coins by Chester L. Krause and Clifford Mishler. Four volumes, each covering a different century from 1601 to the present. Each identifies and lists prices for coins from around the world. The Red Book (officially titled A Guide Book of United States Coins), which is published annually, is a commonly used retail price guide with a wealth of other useful information. A Handbook of United States Coins, commonly known as the Blue Book. Numerous books on coin collecting in general and specialized books on specific types of coins, are available at libraries, book stores, and coin dealers. One such example is Eyewitness Books: Money by Joe Cribb, Alfred A Knopf Publisher. Another is Money: From Cowrie Shells to Credit Cards, Joe Cribb editor, British Museum Publications. Periodicals Current retail prices for U.S. coins are available in Coin World, Coin Prices, Coin Age, and Numismatic News, which may be found at many newsstands, supermarkets, bookstores, and coin dealers stores. Telesphere Money PCGS prices Limun Ltd. Money Factory Internet 1
COIN COLLECTING MERIT ANSWER GUIDE Merit Answer Guide 2 Note: Rare and expensive coins are not required. 1. Choose a theme for your collection from ONE of the following: a. A type set of U.S. coins of a given year or set of years. Have at least one coin from each mint in your type set. b. A set of coins of a particular language, country, or region. c. A time period in history, whether contemporary coins or coins which are out of circulation. Examples might include ancient or biblical coins, colonial coins, crowns, WWII, or any other period of history. d. A set of commemoratives celebrating a special anniversary, the Olympics, the United Nations, Independence Day, coronations or other special events. Recent U.S. examples might include state quarters, Bicentennials or modern U.S. dollars. e. Coins with a particular object on them that is of interest to you such as dinosaurs, famous people, places, plants, animals, or ships. f. A set of one series of coins starting with your birth year to the present. g. Medals, tokens, or some other special coin that did not actually serve as currency. h. Unusual objects that have served as money in various parts of the world such as shells, tea, money made of wood or plastic, siege money, or postage stamps. In your type set, identify the mintmark on each coin. Describe when each mint first started minting coins. Determine if that mint is currently still producing coins. For each coin in your type set, point out the location of the initials (if any) of each coin s designer(s). Check the boy s collection for fulfillment of this requirement. 2. Describe the several forms of money used today and in the past. Answers will vary. Responses could include coins, tokens, medals, commemoratives, proof sets, shells, tea, salt, wooden or plastic money, siege money. 3. List the different kinds of metals or alloys used to make your coins. Answers will vary. Responses could include silver, gold, copper, nickel, bronze, pewter, steel, platinum. 4. Explain the steps necessary to identify a coin of unknown origin. Note the country of issuance of the coin. This may be in writing or by way of the country s flag or other emblem. Note the year of issuance of the coin if you can read it. Note any pictures or inscriptions on both sides of the coin. Try to determine the primary metal composition of the coin copper, silver, zinc, etc. Determine the approximate diameter of the coin. Note whether the coin has any ridges on its edge. Note whether the coin has any unusual qualities such as a hole in the middle or a ring of one metal circled by a ring of another metal. With the above information, consult a coin catalog and see if you can find an exact match for your coin described in the catalog. 5. List and describe the various grades of coins. Include four examples. Answers will vary. They could include some of the following. Uncirculated: (Unc.) Appears to have never been used. No scratches, wear, marks or fingerprints of any kind. Looks new but not necessarily shiny. Extremely Fine: (EF) Close to uncirculated but shows slight wear. Very Fine: (VF) Signs of wear, but still has clear design and lettering.
COIN COLLECTING MERIT ANSWER GUIDE Fine: (F) Shows wear, but the basic outline is clear. Some details and lettering are worn smooth. Very Good: (VG) well worn, but still somewhat attractive. Some minor scratches or discoloration. Good: (G) Worn coin with date, mintmark, and major features clear. Might have scratches or discoloration. Fair: (F) Badly worn, partial dates or mintmark. Off-color or major scratches. Poor: (P) Barely recognizable. Mostly worn smooth. Seriously scratched, defaced, or discolored. Could be bent, gouged, or corroded. 6. Make expanded views of both sides of four different kinds of coins minted at any time. Check the boy s work. 7. Describe three things to look for in detecting counterfeit coins. 1. Check for die marks, cracks, or pimples of metal. 2. Compare it to a genuine coin. 3. Look for the reeding, or corrugated outer edges, of coins above five cents. Check to see if the reeding is uneven, crooked, or missing. 8. Explain how to clean coins in a way that won t damage them. Consult with a coin dealer or another expert when deciding whether to clean a coin or not. Don t clean a coin if you re unsure. Gently remove dirt and grime from a coin by applying a thin layer of petroleum jelly to its surfaces and then gently rubbing these surfaces with a very soft cloth. Soak the coin in olive oil, alcohol, or mild soapy water. Rinse the coin with distilled water after cleaning. Tap water contains minerals that may cause spots on the surface of the coin. Let the coin air dry. Never rub a coin dry. Tarnished coins should be cleaned professionally by an expert in a process known as dripping. Don t use commercial jewelry or metal polishes. Don t use baking soda. These methods will affect the natural tone of the coin, which will decrease the coin s value. 9. Describe why polishing, dipping, or defacing a coin decreases its value. Cleaning coins in this way damages the coin and alters it from its original form, which makes the coin less valuable than it was before. 10. Explain how to store coins in a way that will keep them safe from damage or theft. Inexpensive coins may be stored in boxes, jars, bags, and plastic tubes. An inexpensive method of storing single individual coins is to place them in envelopes made with acid free paper. Another good and inexpensive method is to place single individual coins in a see-through plastic resealable bag, or flip. Store a coin series in a cardboard or plastic coin album. Place valuable coins in hard plastic holders because they provide the greatest protection. 11. Describe the special advantages and disadvantages of collecting paper currency. Describe the special care needed for preserving paper money. There are not many advantages to collecting paper currency. The disadvantages are many. They include Notes have a greater ease of damage to folding, tearing, wrinkling or fire than coins. Notes generally have a lower collectible value than coins because of inflation and the fact that they are generally less scarce than coins. The exception to this would be older notes that are both scarce and in good condition. Because of the higher denomination of currency notes they are traded on an international 3
COIN COLLECTING MERIT ANSWER GUIDE market with floating values that change daily. They also have a much shorter useful life than coins, so they are more likely to be destroyed sooner than coins. The factors combine to mean that there are fewer collectors of paper money than there are of coins. Special care in handling paper money includes not tearing or folding the currency and ever cleaning it since that will cause more damage. There are many devices used to protect and store paper currency such as folders, envelopes, books with windows, etc. 12. Identify three measures used to discourage the attempt to counterfeit U.S. paper currency. 1. Hidden plastic strip 2. Watermarks 3. Fine engraving and other printing techniques to fool color copiers 4
COIN COLLECTING MERIT ANSWER KEY 83 5
1 LESSON Coin Collecting Objectives 1. The boys will be able to list metals and alloys used in making coins. 2. The boys will be able to list several forms of money used today and in the past. Materials Merit Answer Guide Samples or photographs of different types of coins Coin books or magazines such as Eyewitness Books: Money by Joe Cribb, Alfred A Knopf Publisher; or Money: From Cowrie Shells to Credit Cards, Joe Cribb editor, British Museum Publications. Coin collections are as unique as the individuals who collect them. People collect coins for many different reasons. Collections range from simple type sets gleaned from pocket change to exclusive museum quality coins worth several Preliminary Information thousand dollars. What has been considered money has varied from different times and places and there is a collector for every type of medium of exchange ever invented. 6 Starting a Coin Collection. Show the boys an interesting coin you ve found from pocket change. Explain that starting a coin collection can be as easy as finding an interesting coin in your change. A coin collection could be as simple as collecting a coin from every year since you were born. Show the boys some inexpensive coins from other countries, ancient coins or older American coins. Share the following story: A man owned a vending machine company. He allowed his son to look through the coins before he rolled them and took them to the bank. Just by gleaning through pocket change the boy was able to develop a collection of silver coins worth $30,000. Coin Alloys: Ask the boys what alloy means. It is a combination of metals used to make coins. See if they know what the most common metals Lesson are for coins. The most common ones used are copper-nickel and bronze. Silver and gold are used because of their intrinsic value. Copper and nickel are used because of their abundance and durability. Bronze, a mixture of copper and tin, is used because of its ease of use, abundance, and durability. There are other metals and alloys that have been used including pewter, steel, and platinum. Of particular interest is the recent quest by the U.S. Mint to find a suitable gold-colored dollar coin that would be durable and long lasting. More information about this may be obtained from the U.S. Mint. Have the boys complete Requirement 3 in their workbook. Forms of Money. Ask the boys what kinds of things have been used as money in the past. Write their ideas on the chalkboard or an over-
COIN COLLECTING MERIT LESSON 1 head transparency. Use the following information for this discussion. Have the boys complete Requirement 2 in their workbook. Things That Have Been Used as Money. Coins: traditional metallic money in all sizes, shapes, and denominations from around the world. Tokens: a coin minted for a special purpose such as admission to a fair, use in arcade games, etc. These coins have no value in general circulation and can only be used at a special place and time. Commemoratives: a coin minted for a special purpose such as honoring an event, anniversary, program, or person. Unlike tokens and medals, these coins have value in general circulation. They are most often minted by countries, and are sometimes made especially for export to collectors. Proof sets: A very special coin or set of coins made from highly-polished dies and struck several times to enhance their clarity and sharpness. They are usually sealed in plastic and have a mirror-like quality to them. They are prized for their beauty and never released into general circulation or their value sharply declines. These are also made especially for collectors. Shells: used as money by many primitive societies around the world where metals were Be sure the boys have completed Require - ments 2 and 3 in their workbook. Sign off on the requirements. Advancement scarce or unknown. The most common examples are the cowry shells of West Africa and the wampum used by Native Americans. Tea: dried, stamped, cut, and measured, this valuable commodity was used as money in China and other places. Salt: used as money in many cultures because of its scarcity and value. The Romans used it to pay soldiers, hence the origins of the word salary. Wooden or plastic money: used by governments when difficult economic times made making money from traditional metals too expensive. Famous examples include the German money of the Weimar Republic following their defeat in WWI. Siege money: money produced during wartime when a country is under attack or does not have the time or resources to make money out of regular materials. Examples include crude metal stamps, old coins re-stamped with special marks or cut, or postage stamps and other substances. Choose a Coin Theme. Ask the boys to tell you what kind of coin theme they would like to collect. Let them have the week to make their final decision. Tell them they can begin collecting as soon as they know what they would like to collect. Review the information in Requirement 1 with them so they know what kinds of things to look for on the coins they collect. 7
2 LESSON Coin Collecting Objectives 1. The boys will be able to explain the different types of grades of coins. 2. The boys will be able to tell how to identify a coin of unknown origin. Materials Merit Answer Guide Samples or photographs of many different types of coins Coin books or magazines such as Coin World, The Red Book, or The Standard Catalog of World Coins MLR 2 Parts of a Coin Certain terms are used by coin collectors to create a common point of reference when identifying and placing a value on a coin. It is a common saying that a coin is worth whatever someone will pay for it. While this is true, it is a good idea to have a general idea what your collection is worth before deciding which coins to sell or acquire. Professional evaluators can be quite costly and are not necessary for the average collector. It should also be noted that dealers will typically buy a coin at less than its officially listed price in published guides and resell them at a higher price in order to make a profit. In other words, don t always expect to get the price listed in a book when selling it. Knowing the value and condition of your coins allows you to set reasonable goals for completion of your collection or judging its resale value. Preliminary Information Lesson A common misconception is that coins are valuable simply because they are old. In reality, this is only one of many factors in determining the worth of a coin. Coins are considered valuable when they are scarce, in good condition, and old, in that order of importance. There are extremely rare coins such as mint errors that are brand new, but very valuable simply because they are so rare. In contrast there are very old ancient coins that are very inexpensive because they are so common or in such poor condition. An important factor in determining the value of a coin is to research how many of the coins were originally issued and how many are still thought to be in existence. New coins turn up all the time that were lost or hidden away someplace. Even though they may be old, if they become too common the value goes down. 8 Value of Coins. Briefly share the information in the Preliminary Information section about the value of coins and coin collections. Identifying Coins. Ask the boys how they might go about determining the origins of a coin they come across. Refer to Requirement 4 in the Merit Answer Guide for this discussion. Have the boys write the information in their workbook. Grades of Coins. Show the boys some coins of various grades. Explain that coins are rated
COIN COLLECTING MERIT LESSON 2 based on their condition. Explain the grading of coins. Have the boys record this information in their workbook for Requirement 5. Parts of a Coin. Distribute copies of MLR 2 Parts of a Coin. Let the boys look at a real coin and work with a partner to fill in the blanks to identify each part of the coin. Provide assistance as needed. See the Merit Answer Key. Advancement Expanded Views of Coins. Provide samples of coins for the boys to draw an expanded view of the front and backs. If the boys don t have time to complete four coins, encourage them to do this at home on separate paper and bring it back next week. Be sure the boys have completed Require - ments 4, 5, and 6 in their workbook. Sign off on the requirements. 3 LESSON Coin Collecting Objectives 1. The boys will be able to explain why damaged coins are less valuable. 2. The boys will be able to explain how to identify counterfeit coins. Materials Merit Answer Guide Samples or photographs of many different types of coins Coin books or magazines such as Coin World, The Red Book, or The Standard Catalog of World Coins A general rule is that the more altered a coin is from its original form the lower its value is. Every coin that has been dipped, clipped, flattened, painted, drilled, punched, or turned into jewelry represents one more coin permanently ruined and taken out of circulation. Its value is forever diminished, and it is a loss to the collecting world. The irony is that people who are not very knowledgeable about coins think that they are doing these things to enhance the value of the Preliminary Information coin, but in reality the coin is irrevocably damaged and will never again hold the value that it had in its original condition. A coin that has been altered is considered by dealers to be a ruined coin and of little value to collectors. The best thing to do is to leave a coin alone, and don t try to do anything to it. The temptation is to take a dull, tarnished coin, and try to beautify it, but in so doing the coin is ruined and of considerably less value than if left as you found it. 9
COIN COLLECTING MERIT LESSON 3 Furthermore, collectors should be aware that due to the intrinsic value of coins some unscrupulous people will try to take advantage of you and sell you something that is not what it is claimed to be. The Latin phrase caveat emptor or buyer beware is still true. Value of a Coin. Share briefly the information about how an altered coin is less valuable than one in its original state. See the Preliminary Information section for this. How Coins Are Made. Using the following information, give the boys an overview on how coins are made. Strips of metal about thirteen inches wide and 1,500 feet long are rolled in a coil to manufacture the nickel, dime, quarter, half-dollar, and dollar. Each coil is fed through a press that punches out round blanks. The leftover strip is chopped and recycled. (To manufacture the cent, the mint buys blanks ready made for stamping after supplying fabricators with copper and zinc.) The blanks are heated in an annealing furnace to soften them, and then they are run through a washer and dryer. The good blanks go through an upsetting mill which raises a rim around the edges. The blanks go to the coining press where they are stamped with designs and inscriptions that make them genuine United States coins. Press operators spot-check each batch of newly struck coins using magnifying glasses. Be sure the boys have completed Require ment 7 in their workbook. Sign off on the requirement. Lesson Advancement An automatic counting machine counts the coins and drops them into large bags which are sealed shut, loaded onto pallets, and taken by forklifts to the vaults for storage. New coins are shipped by truck to Federal Reserve banks. From there, the coins go to your local bank. Counterfeiting. Genuine coins are struck (stamped out) by special machinery. Most counterfeit coins are made by pouring liquid metal into molds or dies. Governments invest large amounts of money in obtaining the most accurate and counterfeit-proof stamps. Today counterfeit coins are made primarily to simulate rare coins which are of value to collectors. Sometimes this is done by altering genuine coins to increase their numismatic value. The most common changes are the removal, addition, or alteration of the coin s date or mint marks. Each year the designs of coins are made more difficult to counterfeit through intricate detail and precision stamping. Common Signs of Counterfeit Coins. Ask the boys what you might look for in a coin to see if it s counterfeit. See Requirement 7 in the Answer Guide for this discussion. Have the boys complete Requirement 7 in their workbook. 10
LESSON 4 Coin Collecting Objectives 1. The boys will be able to describe why polishing, dipping, or defacing a coin decreases its value. 2. The boys will be able to properly clean and store their coins. 3. The boys will be able to explain how to store coins in a way that will keep them safe from damage or theft. Materials Merit Answer Guide Samples of different things used to clean and store coins Coin books or magazines such as Coin World, The Red Book, or The Standard Catalog of World Coins Preliminary Information Although coins are made to last for a very long time and are among the most common and enduring artifacts a civilization leaves behind, everything ages. The most common thing that tarnishes coins is the oils that comes from ordinary handling. They are also worn smooth over time as they are passed through countless hands. Other factors such as fire, chemicals, scratching, being buried, or submerged for long periods of time also damage coins. For this reason coins must be handled with care to prevent further damage or wear. The goal of the collector is to preserve the coin in the best possible condition to retain its value. Most coin dealers won t even look at a coin that has been cleaned because its resale value is so low. Countless coins have been ruined this way. The best thing to do is to leave a coin alone, and don t try to do anything to it. Lesson Avoiding Wear of Coins. Show the boys pictures or examples of damaged, dirty or worn coins. Talk about these ways to handle coins to avoid additional wear and soiling. Pick up coins only by their edges. Don t touch the surface of an uncirculated coin because fingerprints may reduce a coin s grade and value. Don t let coins touch each other because nicks and scratches may occur. Don t drag coins across hard surfaces. Place coins on a soft, clean cloth or pad after removing them from a holder. Keep coins away from moisture because spots may occur. Wear clean, white cloth gloves to handle valuable coins. Cleaning Coins. Demonstrate techniques for safe, mild, cleaning of coins. See Requirement 8 in the Merit Answer Guide for this. Have the boys fill in the information in their workbook. Review the information about cleaning coins in 11
COIN COLLECTING MERIT LESSON 4 the Preliminary Information section. Have the boys complete Requirement 9 in their workbook. Storing Coins. Discuss the many devices used to protect and store coins such as folders, flips, Be sure the boys have completed Require - ments 8, 9, and 10 in their workbook. Sign off on the requirements. Advancement plastic flats, envelopes, books with windows, etc. See Requirement 10 in the Merit Answer Guide for this discussion. Have the boys fill in the information in their workbooks. 5 LESSON Coin Collecting Objectives 1. The boys will be able to demonstrate the proper care and techniques for collecting paper currency. 2. The boys will be able to identify three measures to discourage the counterfeiting of U.S. currency. 3. The boys will be able to explain the advantages and disadvantages of collecting paper currency. Materials Merit Answer Guide Samples of different types of paper currency Books specializing in paper currency MLR 5 Parts of Paper Currency Preliminary Information 12 Collecting paper currency is a special subcategory of coin collecting in general which requires special techniques to acquire and preserve a collection that are quite different than any other type of currency. Most of the standards of grading still apply, but special care is taken that the note does Paper Currency. Show pictures or examples of current and past paper currency. If possible, have paper currency from other countries. Contrast the colorful designs and anti-counterfeiting measures Lesson not get torn, folded, wrinkled, or soiled. Some of the terminology of currency collecting is different than coin collecting. Also, in most countries notes are usually made at a separate printing facility than the national mint. used by other countries with those measures used by the United States. Talk about advantages and disadvantages of collecting paper currency and proper techniques for handling it. See the Merit
COIN COLLECTING MERIT LESSON 5 Answer Guide, Requirement 11 for this discussion. Have the boys write this information in their workbook. Parts of Paper Currency. Distribute copies of MLR 5 Parts of Paper Currency. Let the boys look at a U.S. dollar bill and work with a partner to try to fill in the blanks to identify each part of the bill. Provide assistance as needed. See the Merit Answer Key. Preventing Counterfeiting. Explain the measures used to prevent counterfeiting of paper currency. See Requirement 12 in the Merit Answer Guide for this discussion. Have the boys complete this information in their workbook. Be sure the boys have completed all the requirements for this merit. Sign off on the requirements. Advancement 13
MLR 2 Parts of a Coin 14
MLR 5 Parts of Paper Currency 15
Coin Collecting Merit Blue Merit Note: Rare and expensive coins are not required. 1. Choose a theme for your collection from ONE of the following: a. A type set of U.S. coins of a given year or set of years. Have at least one coin from each mint in your type set. b. A set of coins of a particular language, country, or region. c. A time period in history, whether contemporary coins or coins that are out of circulation. Examples might include ancient or biblical coins, colonial coins, crowns, WWII, or any other period of history. d. A set of commemoratives celebrating a special anniversary, the Olympics, the United Nations, Independence Day, coronations or other special events. Recent U.S. examples might include state quarters, Bicentennials or modern U.S. dollars. e. Coins with a particular object on them that is of interest to you such as dinosaurs, famous people, places, plants, animals, or ships. f. A set of one series of coins starting with your birth year to the present. g. Medals, tokens, or some other special coin that did not actually serve as currency. h. Unusual objects that have served as money in various parts of the world such as shells, tea, money made of wood or plastic, siege money, or postage stamps. In your type set, identify the mintmark on each coin. Describe when each mint first started minting coins. Determine if that mint is still producing coins. For each coin in your type set, point out the location of the initials (if any) of each coin s designer(s). The theme I collected is On separate paper write out the information for this requirement. Insert it in your workbook. COIN COLLECTING MERIT W-1
2. Describe the several forms of money used today and in the past. Today Past 3. List the different kinds of metals or alloys used to make your coins. 4. Explain the steps necessary to identify a coin of unknown origin. 5. List and describe the various grades of coins. Include four examples. W-2 COIN COLLECTING MERIT
6. Make expanded views of both sides of four different kinds of coins minted at any time. Do this on separate paper and insert it in your workbook. 7. Describe three things to look for in detecting counterfeit coins. 8. Explain how to clean coins in a way that won t damage them. 9. Describe why polishing, dipping, or defacing a coin decreases its value. COIN COLLECTING MERIT W-3
10. Explain how to store coins in a way that will keep them safe from damage or theft. 11. Describe the special advantages and disadvantages of collecting paper currency. Describe the special care needed for preserving paper money. Advantages: Disadvantages: Special Care: 12. Identify three measures used to discourage the attempt to counterfeit U.S. paper currency. W-4 COIN COLLECTING MERIT