Uncirculated

Alloy: A mixture of two or more metals

American Numismatic Association (ANA): nonprofit educational organization that encourages the study of money throughout the world.

The main benefits of uncirculated coins are: Cost. If you want to invest in gold and silver via coins, uncirculated coins are the most cost-effective option. Since they are easier to produce, the premiums for these coins are generally lower than proofs. Uncirculated coins appeal to both the investor and coin collector side in all of us. October 26, 2020 - WASHINGTON–The United States Mint (Mint) will accept orders for rolls and bags of uncirculated Massachusetts American Innovation™ $1 Coins beginning on October 29 at noon EDT. Available product options and pricing are below. PRODUCT CODE PRODUCT OPTION PRICE 20GRB 25-Coin.

Annealing: Heating blanks (planchets) in a furnace that softens the metal

Assay: To analyze and determine the purity of metal

Bag Mark: A mark on a coin from contact with other coins in a mint bag

Bi-Metallic: A coin comprised of two different metals, bonded together

Blank: Another word for planchet, the blank piece of metal on which a coin design is stamped

Bullion: Platinum, gold or silver in the form of bars or other storage shapes, including coins and ingots

Bullion Coin: Precious metal coin traded at current bullion prices

Business Strike: A coin produced for general circulation (as opposed to a proof or uncirculated coin specially made for collectors)

Bust: A portrait on a coin, usually including the head, neck and upper shoulders

Clad Coinage: Coins that have a core and outer layer made of different metals. Since 1965, all circulating U.S. dimes, quarters, half dollars, and dollars have been clad

Coin: Flat piece of metal issued by the government as money

Collar: A metal piece that restrains the expanding metal of a planchet during striking

Commemorative: A special coin or medal issued to honor an outstanding person, place, or event

Condition: The physical state of a coin

Counterfeit: A fake coin or other piece of currency made so that people will think it’s genuine

Currency: Any kind of money – coins or paper money – that’s used as a medium of exchange

Denomination: The different values of money

Die: An engraved stamp used for impressing a design (images, value, and mottoes) upon a blank piece of metal to make a coin

Designer: The artist who creates a coin’s design (but doesn’t necessarily engrave the design into a coinage die)

Edge: The outer border of a coin, considered the “third side” (not to be confused with “rim“)

Engraver: An artist who sculpts a clay model of a coin’s design in bas relief

Error: An improperly produced coin, overlooked in production, and later released into circulation

Face Value: The sum for which a coin can be spent or exchanged (a dime’s face value is 10¢) as opposed to its collector or precious metal value

Field: The portion of a coin’s surface not used for design or inscription

Grade: Rating which indicates how much a coin has worn from circulation

Hairlines: Tiny lines or scratches on coins, usually caused by cleaning or polishing

Incuse: Opposite of relief, the part of a coin’s design that is pressed into the surface

Ingot: Metal cast into a particular shape; used in making coins

Inscription: Words stamped on a coin or medal

Intrinsic Value (Bullion Value): Current market value of the precious metal in a coin

Key Date: A scarce date required to complete a collection, usually more difficult to find and afford

Legal Tender: Coins, dollar bills or other currency issued by a government as official money

Legend: Principal lettering on a coin

Medal: A metal object resembling a coin issued to recognize an event, place, person or group, with no stated value and not intended to circulate as money

Medium of Exchange: Anything that people agree has a certain value

Mint: A place where coins of a country are manufactured under government authority

Mint Luster: The dull, frosty, or satiny shine found on uncirculated coins

Mint Mark: A small letter on a coin identifying which of the United States Mint’s facilities struck the coin

Mint Set: A complete set of coins of each denomination produced by a particular mint

Mint State: Same as uncirculated

Mintage: The quantity of coins produced

Motto: A word, sentence or phrase inscribed on a coin to express a guiding national principle, such as, “E Pluribus Unum” inscribed on all U.S. circulating coins is Latin for “out of many, one”

Mylar®: Trademark for a polyester film used to store coins.

Numismatics: The study and collecting of things that are used as money, including coins, tokens, paper bills, and medals

Obsolete: A coin design or type that is no longer produced

Obverse: The front (or “heads”) side of a coin

Off-Center: Describes a coin that has received misaligned strike from the coin press and has portions of its design missing

Overstrike: A new coin produced with a previously struck coin used as the planchet

Pattern: An experimental or trial piece, generally of a new design or metal

Planchet: The blank piece of metal on which a coin design is stamped

Proof: A specially produced coin made from highly polished planchets and dies and often struck more than once to accent the design. Proof coins receive the highest quality strike possible and can be distinguished by their mirror-like background and frosted foreground.

Proof Set: A complete set of proof coins of each denomination made in a year

Relief: The part of a coin’s design that is raised above the surface, opposite of incuse

Restrike: A coin that is minted using the original dies but at a later date

Reverse: The back (or “tails”) side of a coin

Riddler: A machine that screens out blanks (planchets) that are the wrong size or shape

Rim: The raised edge on both sides of a coin (created by the upsetting mill) that helps protect the coin’s design from wear

Roll: Coins packaged by banks, dealers or the United States Mint.

Series: A collection of coins that contains all date and mint marks of a specific design and denomination

Uncirculated Def

Slab: Nickname for some protective coin encapsulation methods, especially those that are permanently sealed and rectangular

Strike: The process of stamping a coin blank with a design. The strength of the imprint – full, average, or weak – affects the value of rare coins.

Type Set: A collection of coins based on denomination

Uncirculated: The term “uncirculated” may have three different meanings when applied to a coin:

1. It can refer to the particular manufacturing process by which a coin is made
2. It can be used as a grade when referring to a coin’s degree of preservation and quality of the strike
3. It can point to the fact that a coin has not been used in everyday commerce

At the United States Mint, the term uncirculated refers to the special coining process used to make the coin, which gives it a brilliant finish. Uncirculated coins are manufactured using the same process as circulating coins, but with quality enhancements such as slightly higher coining force, early strikes from dies, special cleaning after stamping, and special packaging. Uncirculated coins may vary to some degree because of blemishes, toning, or slight imperfections.

Upsetting Mill: A machine that raises the rim on both sides of a blank (planchet)

Variety: A minor change from the basic design type of a coin

Year Set: A collection of all coins issued by a country for any one year (does not necessarily include every mint mark)

If you’re a bit confused about the difference between proof and uncirculated coins, you’re not alone. Both are sold in protective packaging with great luster, a certificate of authenticity and hit the market in mint condition because they’ve never been introduced to into general currency. However, there are distinct and noticeable differences that collectors should be able to distinguish.

Uncirculated Philadelphia Penny

In this article, we’ll go a little deeper into some of the key aspects that set proof and uncirculated coins apart and look at the reasons for their production. Whether you are new to collecting or simply looking for a refresher, this will help you make a more informed buying decision.

How Are Proof Coins Produced?

The U.S. Treasury defines proof coins as “the finest quality of coins” produced by the United States Mint. These coins are meticulously produced in small numbers and handled to a specific set of guidelines.

The proof blank (a blank coin that hasn’t been struck) is actually hand-polished before being fed into specialized presses fitted with polished dies. This production process makes proof coinage particularly distinguishable for a number of reasons:

1. Proof coins are stuck twice to provide exceptional contrast and detail
2. Multiple strikes provide a stunning shimmer and highlight the intricate coin design
3. Proof coins are placed in protective packaging to keep the coinage in flawless condition
4. Packaged and sold with an official U.S. Mint Certificate of Authenticity

Due to the labor-intensive process, strict production guidelines and hand polishing, proof coins are more rare than other uncirculated coins and represent a smaller fraction of uncirculated coin production.

Uncirculated Coin Production

Uncirculated coins are hand-fed into a coining press, but the blanks are not hand polished, unlike proof coins. Uncirculated coins will have a brilliant, detailed finish. However, you will not find the same type of high-polished mirror-like glow.

• Produced much like the coins we use everyday, but with a few adjustments in production that result in a more brilliant finish
• These coins will also include an official U.S. Mint Certificate of Authenticity
• Uncirculated coins are also sold in protective packaging, but may show blemishes or imperfections

Why Some Collectors Prefer Proof Coins

The craftsmanship and attention to detail is something that many collectors admire about proof coins.

• Presentation: Because proof coins are struck twice, hand polished and inspected by hand, the appearance is second to none.
• Rarity: Proof coins are less common than general uncirculated coins, making them highly collectable.
• Value: Proof coins are typically considered more valuable (but this is not always the case).
• Condition: Proof coins are shipped in exceptional condition and are usually free from any visual blemishes.

What Are the Advantages of Collecting or Investing in Uncirculated Coins?

Uncirculated coins are sometimes favored by both investors and collectors alike. Let’s take a look at why these coins may appeal to both subgroups.

• Cost: Because the cost is typically lower, investors are drawn to uncirculated gold and silver coins due to their affordability. Some investors are more concerned with the raw materials than the coin itself. Collectors can find great looking coins in protective, commemorative packaging at a reasonable price point.
• Appearance: Uncirculated coins are visually striking, but may show more blemishes than proof coins.

What Are the Similarities of Proof and Uncirculated Coins?

Technically, both types of coins are uncirculated and do not enter general currency. The primary difference is in the production and physical appearance of the coinage.

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Why Are Proof Coins Produced by the U.S. Mint?

Historically, proof coins were produced as a sort of test run to make sure the dies and presses were functioning properly. In fact, the earliest coins produced by the U.S. Mint never went into circulation. These were struck in 1793 and are believed to be made from silverware provided by George and Martha Washington.

The director of the U.S. Mint would inspect and approve or disapprove proof coins before they were struck in high numbers and put into circulation.

Proof coins were also made to be archived and preserved by the government. As these coins became more sought after by collectors, the United States Mint began producing proof coins in larger numbers to sell into the collection market.

Today, both proof and non-proof uncirculated coins are produced by the U.S. Mint, sold and resold by collectors and investors. Most countries also produce proof coins, so collectors can find rare uncirculated coinage from all over the world.

Which Type of Coin Should You Purchase?

In today’s market, more collectors and investors are leaning toward proof coins over uncirculated coins. A primary reason for this is the investment potential for proof. For instance, in 2009, American Eagle proof coins were trading at three-times the spot price of gold. Today, American Eagle proofs are around 1.3 times the gold spot price, but the potential for them to once again trade at three-times the rate of spot, or even higher, is likely.

Collectors and investors also appreciate the long-term growth potential of proof coins. It’s considered a low-risk investment with excellent potential to increase in value. Because proof coins are more rare and produced in smaller numbers with a higher level of quality control, you can expect these coins to hold and increase in value.

No matter what type of coin you decide to purchase, there are a few things to keep in mind.

• Luster: Is the coin appealing to you? There is actually no way to return a coin’s original shininess, so what you see is what you get. Make sure you like the coin as-is.
• Damage or Flaws: Is the coin damaged or otherwise flawed? With non-proof uncirculated coins, you may want to avoid purchasing the coin. However, when it comes to proof coins, a mistake made through the minting process could actually make a coin more valuable. It’s so rare that flawed proof coins make it through inspection and onto the market, off center strikes, overdates and multiple-struck proof coins could fetch a higher price.
• Wear: Older proof and uncirculated coins will show signs of wear if they aren’t correctly handled. Inspect coins closely to ensure your purchase is as pristine as possible.

Whether you choose proof coins or non-proof uncirculated coins, there are plenty of great options out there for the casual or serious coin collector and investor. However, if you want to choose coins with a higher likelihood of increasing in value, proof coins are often the safer bet.

Sources:

1 – https://www.usmint.gov/learn/history/coin-production
2 – https://www.usmint.gov/learn/history/timeline-of-the-united-states-mint
3 – https://en.wikipedia.org/wiki/Proof_coinage
4 – https://www.usmint.gov/learn/collecting-basics
5 – https://www.philadelphiafed.org/education/teachers/resources/money-in-colonial-times#06