Here are some basic concepts you’ll need to know when you start collecting coins:

Grade – The condition in which the coin is. The better the condition, the higher the price will be related to other similar coins. Grading is quite subjective when it comes to old and antique coins, a 200 years old coin may be graded Very Good but it may be in a worse condition than a 50 year old VG coin.

The grades are: Proof (P), Uncirculated (UNC), Almost Uncirculated (AU), Extremely Fine (EF), Fine (F), Very Good (VG). These terms varies from country to country, but this list is the most popular standard.

Rarity – Rarity should not be confused with the grading, since the grade describes the condition of the coin, while rarity describes if the coin is scarce or not. Rarity is a compound of several factors: the year of mint, the amount of coins that were minted, and its condition.

Mint – This is the act of  srtriking or making the coin itself. Usually, a certain coin has been made in different years and different places. Coins have the year or minting and the mark of the mint house.

KM number – This is a reference number from the KRAUSE/MISHLER Catalog of World Coins, the most comprehensive and popular reference book in my opinion. KM numbers are unique. You can buy the book online, and they are divided in Century volumes. They have good pictures of coins, too. If you don’t want or can’t afford to buy the book, you can find out the KM number of a coin on their site for free.

Obverse – The side also known as “head”. It has the main design and the date.

Reverse – The opposite side.

Alloy – Most XX Century coins are made of two or more metals.

Commemorative coins – They are coins specially made to commemorate a special date or event, or in honor of a very important personality. They are very sought after by collectors.

Error – Coins with mint/striking errors are unique, therefore quite valuable. There are collectors devoted to this type of coins only.

The above is just a simple list of common terms for those interested in starting in the coin collecting business. If you get caught by this wonderful Hobby of Kings, you will find loads of information on the Net, but be careful with the sources and look for information from authoritative sites.

This is one of the first articles on a series of coin collecting articles for novices, so there will be more!