Now that you have become a coin collector, you will be putting a lot of time, effort and money into this hobby. It is important to consider any and all preparation and storage options you have for your currency.
Invest in an Acid-Free Containers and Paper
In fact, when paper that’s not acid-free breaks down, it releases chemicals that can cause discoloration, spotting, and even oxidation, all of which can damage your collection and diminish its value. This applies to any form of currency you are going to collect.
Whatever storage method a collector chooses, the container should be acid-free, so safes are usually a good idea. A safe that’s fire-retardant is best, in case of an emergency involving the location of your collection.
NEVER Use Bare Hands
Even if you just washed your hands, touching rare coins, rare bills or potential collectible currency of any type for that matter, with bare hands is never a good idea. The oils from your skin ruin the value of the coin by staining the surface, and concurrently, the design/ image on the faces of the coin. Bills and coins shouldn’t be handled with bare hands, that’s why we recommend always using gloves when handling coins.
Store Your Currency
Coins and banknotes should be kept as close to a constant temperature and humidity level as possible. If exposed to extreme temperatures, coins and other forms of currency can have effects from oxidation and be ruined in both physical appearance and value.
Copper and silver (in coins) in particular are susceptible to tarnishing or “toning” caused by temperature and humidity fluctuations around your collection. Some collectors enjoy toning, it’s a destructive force that will eventually causes the coin to become very dark and less appealing in appearance to most.
Humidity can also cause mold growth, which negatively effects all forms of documents and currency. Mold is particularly a concern for paper money collectors, but it may also grow on coins. Generally, banknotes and coins should be preserved in a low-humidity environment, preferably less than 30 percent relative humidity, as to maintain their quality and value.
With a climate-controlled storage unit or storage space, you can ward off both oxidation damages and mold growth, as you can keep your storage unit at consistent and moderate temperature, with humidity levels that are just right for coin storage.
Get Insurance
You never know what is going to happen and a total loss of a currency collection is something that many have dealt with. I remember losing my entire comic book collection (over 1,200 books!) to hurricane Florence while living in Wilmington, NC. I wish I would have had the foresight to back my collection with insurance!
Many coin experts believe insurance for your collection is something that should always be considered by anyone getting into the hobby or who already has an existing collection that is sizable or valuable enough where it makes sense to purchase coverage.
Information on ”Cleaning” Coins
Since this subject has been visited a few times on my website VarietyErrors.com, it will be discussed here. At no time, do I suggest“washing” or “cleaning” any coin you are meaning to keep in your collection, this in a way, defeats the hobby in the sense of collecting to preserve the condition the coin was found in.
Take into mind that the piece you hold in your hand could very well be a collector’s item. Does the coin even need to be cleaned? As described in many other articles from Variety & Errors, the collecting of anything is very much the same in regards to cleaning specimens found while “out on the hunt”.
How to Clean Coins
There are basically two ways you can go about cleaning your (not valuable) coins. You can wash them and/or you can dip them. If you want to simply wash the coins, these are the supplies you’ll need:
Dish soap (the kind for hand-washing) A rag or dish towel
A Small bowl
STEP 1: Prepare the bath
If your coin is only slightly dirty, or the dirt isn’t deeply set in, you can simply rinse it off in lukewarm water. If the dirt is more set on than that, run hot water in the sink or boil it in a pan on the stove. Then take about a cup of this water and fill the small bowl. You should use the hottest water possible to clean your coin, but use caution when running it so that you don’t burn your hands. Next, add about a teaspoon of dish soap and mix it with the water until it is becomes fairly uniform solution.
STEP 2: Submerge the coin
After you’ve got the bath ready, take your coin and place it in the soapy water. Let it soak for a couple of minutes. If you’re soaking more than one coin at a time be careful that you don’t scratch the coins already in the solution as you put more in. Do not stack them up in the water and make sure they don’t touch each other. If you’re worried about this, you can always wash each coin separately.
STEP 3: Lightly buff the coin
If after a few minutes of leaving your coin in the water bath it still has dirt on it, first, try moving it around in the water vigorously and seeing if that shakes it off. If that doesn’t work, you can use your fingers to rub the coin gently, but do not try to pick the dirt off of the coin with your fingernail or another abrasive item. You could risk scratching it that way. Also, hold the coin by the edges, never by the face.
STEP 4: Rinse the coin
Once you’ve gotten the coin clean, you can rinse it under the faucet. But if you want to prevent hard water deposits or spots on your coin, rinse it in distilled water instead. Just pour about a cup of it into a bowl and dunk the coin in the water for a few seconds, making sure to get all the soap off of it.
STEP 5: Dry the coin
To dry your coin, place it on a paper towel or dish towel and let it air dry. If you’re too impatient or need the coin right away, you can dab it with the towel to dry it. Don’t forcefully rub the coin dry or you risk scratching its surface. If you hadn’t figured it out by now, they scratch very easily!
Coin Storage and Holder Ideas
Containers and Albums and Sleeves, Oh My!
There are actually several currency storage solutions on the market today. All are adequate, some being better than others. The type of storage you select has a lot to do with the type of currency you are collecting and how you personally wish to store and reference them.
For example, if you are not an avid collector, you may not want to go out and buy expensive albums for those few little Wheat Back Cents you have lying around. However, an extensive coin searcher and collector would want to invest in the more expansive storage options to maintain the quality of higher grade coins.
*Storing coins has a wide variety of options, so the following will detail each respectively and the occasions in which you may want to use them.
2×2 Cardboard Holders
Overall, the cheapest way to store coins, other than tubes and rolls. Cardboard coin holders are actually 2×8 pieces of cardboard paper with 2 coin-sized holes cut out and covered with plastic which forms a “window” around the coin, the holder’s “window” will be cut to the size appropriate for the coin it is meant to hold. Meaning, a 2×2 holder for a US Quarter will be the size of the coin itself.
2×2 Mylar Holders
Mylar holders are the next option above cardboard holders, supplying more protection for coins. There is no cardboard in these. They are all mylar plastic material. These are generally used for lower value coins that a collector plans to sell eventually.
2×2 Plastic Holders
The next level of protection above Mylar Holders (see above). Plastic panels snap together to secure the coin in place. They are composed of thicker plastic for added protection and temperature control (in a sense).
Coin and Banknote Albums
The most common way to store currency in any form. Generally, collectors would sort their sets of coins, such as a year run of Buffalo Nickels for example, within an album, in order to maintain the series’ order and value. The more common (and less expensive) Whitman albums and Harris folders for coins and other currency, generally fold out into 3 or 4 sections. These sections have multiple slots for each year of coin.
The better coin albums, such as Intercept version, and a few newer brands found online, are quite a bit more expensive, but well worth the money if you are storing higher grade coins or series of coins. These are usually made of higher grade materials and display both sides of the coin beautifully. These albums also come in a standard book form, where the pages are turned rather than the cheaper albums where the pages fold out. This feature also adds to the display aspects of the album as a whole.
Coin and Banknote Tubes
The best and most common storage container for lower grade (quality) coins. These tubes are made of plastic and hold coins in a stack nicely. They come in various colors but are generally clear or white.
Air Tight / “AirTite” Holders
I like these the best for valuable coins that aren’t in one of my sets. Airtite holders are kind of like the 2×2 hard plastic holders, only a little better and they’re round like the coin instead of square.
Coin Binders
These are normally 3- ring binders with pages that hold 2×2 coin holders. Albums like this are a cheaper alternative usually to binders made strictly for coins. It is also a great idea to use these if you want the ability to add pages as you go.
Many stores sell binders of course, but you will most likely need to visit your local coin or hobby store in order to purchase the coin album pages. They typically come in a multi-pack.
Coin and Banknote Slabs
“Slab” is coin collector terminology. Generally a “slab” is what a professional grading service puts your coin into after they have given it a grade. This is the best and safest way to store coins (well…other than a 3 foot thick vault).
You can buy slabs online or at a coin shop. They are made of thick plastic that snaps together like the 2×2 holders. Only with a slab, they are rectangle -shaped with a space (before you snap it together) to insert a label describing what type of coin is going to be displayed in it, along with its value.
These are similar to the slabs you get from professional grading services, but not exactly the same. A slab you receive from a grading service after they have graded your coin doesn’t just snap together. Instead, they are sealed and are tamper proof.
Slab holders are an even better source of storage for your collection. They make plastic rectangular boxes with slots grooved in them to stand your slabs upright in. The absolute best protection is to have your coin graded and sealed by a grading service such as NGC then you place the coin in a snap together type slab.
HOW TO TAKE CARE OF PRECIOUS METALS
It’s a simple and well-known fact that people are drawn to shiny things. (*My geek side queues a Smeagle/ Golem reference from Lord of the Rings). These things include bullion coins or bars kept in their “mint” condition. Investors are more willing to pay for a coin or bar that is well preserved rather than one with scratches or severe tarnishing. Therefore, mint condition bullion is a more liquid asset on the market, even though most dealers and buyers will always pay attention to the bullion’s manufacturer, weight, and purity first.
For this reason, knowing how to take care of coins, bars and rounds is a must if you are or want to become a bullion collector or investor. One of the biggest concerns about precious metals is their tarnishing – a process through which your bullion loses luster.
Why do metals tarnish?
Depending on each metal’s chemical properties, they can react to natural or synthetic components. High humidity climates, improper cleaning or exposure to certain chemicals may accelerate the tarnishing (toning) or oxidation process of your precious bullion. This process can be faster or slower depending on the finishing of your bullion. However, most of the time it will not affect its intrinsic value, but it may become harder to trade your bullion on the market.
Each Metal’s Chemical Properties
Gold:
Gold is difficult to tarnish because it’s chemically inert. Gold maintains its chemical and physical properties and it doesn’t oxidize under normal conditions. Gold gets dissolved by nitro-hydrochloride, which is not easily found. Although it’s resistant to scuffs and scratches, it’s a soft metal, hence it is possible to dent the bullion if dropped on a hard surface or from a considerable distance.
Silver:
Silver oxidizes under normal conditions. This metal is easy to tarnish, scratch and scuff, hence it requires a little bit more care than gold. It’s susceptible to hydrogen sulfide.
Copper:
Copper slowly reacts with atmospheric oxygen, soil compounds and natural water, which leads to corrosion. Copper tarnishes if it’s exposed to sulfur compounds forming various copper sulfides.
Platinum and Palladium:
Platinum and Palladium are the least reactive precious metals These noble metals are resistant to corrosion and high temperatures and can be damaged only if you use synthetic chemicals. However, the metals may become dull over time.
Bar, Rounds And Coin Handling
Knowing how to handle your precious bullion properly is essential for preserving its condition. Remember, it is easier to keep your bullion clean than have to restore it once you touched it. Keep your coins sealed in storage. Avoid unnecessary handling.
In case you really need to hold your bullion, make sure that you wear soft, clean, cotton gloves. Fingerprints contain oil that can transfer to coins and bullion.
Never use:
latex or plastic gloves – these types of gloves are coated with powders or lubricants which can damage your precious bullion.
plastic tweezers – they may scratch or damage your bars or coins.
If you choose to handle your precious metals with your bare hands, make sure to wash them before touching your bullion. By washing your hands, you ensure that they are free of any dirt or residues. The best way to clean your hands is to use hand sanitizers since they will remove any damaging oils from your hands. When handling your coins or bars, prepare a special area by draping a soft towel before you take out your metals and start working with them.
Summarizing the above tips, here are the main rules for proper bar and coin handling:
Avoid handling your bullion if possible – keep your coins and bars in a safe storage place – this is the place where your coins and bars should be 99.9% of the time.
If you need to handle your bullion, wear soft, lint-free cotton gloves.
Wash your hands and use hand sanitizers before touching your bullion.
Lay a soft towel or a thick, soft cloth– to ensure a soft landing in case you drop your bullion.
Always handle your bullion by edges, between your forefinger and thumb.
Never place tarnished and untarnished metals together. Don’t talk or breathe over your bullion.
Bar, Rounds And Coin Cleaning
You should avoid any bar or coin handling unless it is necessary to do so. Rigorous cleaning is a famous misconception – by cleaning your precious metals, you will not improve their value or condition.
The attempts to protect the quality of your bullion will only accelerate the deterioration of the metal. Cleaning a coin or a bar can damage its condition and, therefore, lower its value.
If you recently acquired coins that are difficult to read or distinguish, it doesn’t mean you need to clean them. This process will spoil their pleasing tarnish and deep coloration, which may have taken centuries to be formed. So, if you have highly-graded, rare or extremely valued coins or bars that need to be cleaned – do not clean them, or, in case you feel it is necessary, seek only professional help.
Remember, coins and bars that carry evidence of cleaning, contact marks, worn features or rim blemishes have significantly lower value, especially numismatic, proof and brilliant uncirculated coins which are mostly issued in low mintage editions. Old coins that show age marks are far more desirable than the ones with surfaces stripped away by improper cleaning.
If you still want to clean your bullion – make it superficial. Wash your bullion with mild soap and water, and rinse it thoroughly to avoid any soap residue. After washing it, gently wipe your bullion dry with a soft towel or cloth.
Do not polish it excessively and aggressively because you can scratch the bullion, remove the outer layer, and cause a small loss of precious metal, hence making it lighter and reducing its value. Let your bullion completely dry before storing to prevent trapping any moisture or water on its surface.
In general, when it comes to cleaning your bullion – avoid it at any price. If you still decide to do it, make it superficial, and perhaps use an ultrasonic tank, but NEVER USE:
Special formulate polishes, abrasives or cleaners, because they contain acidic components which can corrode the surface of your precious metal.
Tap water, since it contains chlorine in it which may discolor the bullion. Use and rinse the bullion only in distilled water.
Fingernail polish, soda, acetone, carbon dioxide and vinegar will react with your precious metal and will certainly damage it.
Acid-based metal cleaners, because they will remove some of the coin or bar surface.
Bar, Rounds And Coin Storage
When it comes to bar or coin storage, you should know both how and where you need to store and protect them from any potential damages or risks. Before describing the best places for gold and silver bar storage or coins storage, it is important to know what kind of boxes, tubes or capsules you must preserve your bullion in.
The best containers in which you can store your bullion must be air tight and made of natural materials, such as protective coin slabs, lined wooden boxes, wooden shadow boxes with glass display panels, or Mylar flips and containers. If you prefer storing your coins in albums, then opt for one with cardboard folders or slots, not plastic sleeves.
Never store your coins and rounds in a binder or album with plastic sleeves, as organized and attractive as it may look, it is completely unsafe. Your coins or rounds may become discolored if you place them in these plastic sleeves, since they aren’t airtight, they can potentially trap moisture and cause damage to your coins.
PVC containers are very dangerous bar and coin storage options. PVC decomposes when it reacts to light or heat, releasing hydrochloric acid that will eat away the metal in your bullion and diminish its resale value – and cause irreversible and permanent damage to your coins or bars. It’s also surprising that many people use tape to stick their bullion to a piece of paper or card. Avoid sticking anything to your precious metals because it will leave marks that will destroy your bullion.
For the majority of coins, the best coin storage is the Mylar “flip”- a cardboard holder lined with Mylar – it has a circle cut out in the middle, covered with this special form of a heat-resistant plastic sheet. When the coin is placed in the Mylar “window”, the other part of the cardboard holder is folded over and stapled on its three sides. This way, both sides of the coin are visible through the Mylar plastic. You should be careful and flatten the staples against the card to avoid accidentally scratching other coins.
If you choose to place your coins or bars in Mylar capsules or containers, consider placing inside them some carbon or “charcoal”. Carbon will help you trap some of the hydrogen sulfides which causes tarnish. You can get carbon from pet shops because it’s also used for fish tanks. You can also pack your metals (e.g. silver) with silica gel – it will stop rust, spoilage, mildew and corrosion. For large silver bar storage, use dehumidifiers.
Never store tarnished and untarnished metals together. Avoid hazardously placing them together to prevent rubbing them against each other -this can lead to friction or abrasive marks. If necessary you should stack them in piles, or separate them with plain cardboard sheets or other non-reactive materials, but the best way is to simply store them separately.
Now that you know the main rules of how to store your bullion, you must decide where you will store it. Consider that $30,000 gold can fit in your pocket, but $30,000 silver weighs about 50 lbs. Also, coins always take a little bit more space than bars, and you should never store different types of metals together.
Although many recommend using safe deposit boxes in banks, there are some certain risks associated with this storage type. Safe deposit boxes aren’t FDIC or bank insured and are susceptible to “Bank Holidays”. Like many times you need to access something, you do not want to have issues accessing your bullion. With banks, this will be the case.
The IRS or government can also freeze and seize your box, as it has happened in the past. This means that by law you would need to have your safety deposit boxes checked and cleared before you would have access to your holdings.
A storage type that you should consider avoiding is self-storage facilities. Even though they might seem a cost-effective option, they are not ideal for storing physical bullion. There is an increased likelihood of theft among storage employees because they aren’t so rigorously checked as bank or vault officers. Second, these facilities may not be secured effectively to hold such valuable items. Also, these facilities are more subject to damage during bad weather. I have also seen storage
units go under construction and allow dozens of workers to access your unit. Do you really want strangers around the bullion you have in your “secure” unit? Probably not.
This is why you may think of storing your bullion at home. Before rushing to opt for original storage compartments, like “secret storage rooms”, you should first consider buying a solid safe. The right safe must be waterproof, fireproof, and large enough to hold your potential collection.
Besides choosing the best safe for you, based on its size or features, you should also decide whether you need a standalone safe, a floor safe, or a wall safe. Also, you should think of what kind of lock you need: a digital lock, a fingerprint lock, a manual combination lock, or a combination of locks.
Once you decide on the safe that will suit you the best, keep in mind the following tips on your home bullion’s storage and safety:
Make sure fewer people know about your belongings – limit the number of people that know about your bullion.
Avoid posting any images of your bullion on social media websites.
Diversify your location – consider buying two safes – one will serve as a decoy safe for tricking robbers.
Be creative with your home storage means – get inspired by books and posts, but avoid using the same locations. Keep in mind that if you can read about where to hide something, the burglars can read, too.
Make sure the space is cool and dry (low humidity) – moisture and heat can lead to corrosion.
Avoid using wood surfaces due to fire hazard – your bullion may be damaged.
Leave a letter for your relatives – in case the worst happens, write a detailed guideline about where your bullion is stored.