What Is the Difference Between Rare Coins and Vintage Coins?

Hang around coin collectors long enough, and you’ll hear mention of vintage coins and rare coins. In many cases, these terms may be used interchangeably.

Don’t make this mistake – they have two distinct meanings. A rare coin is any coin that retains only a few surviving specimens. A vintage coin, on the other hand, is a coin considered to be old

To be clear, a coin can be rare, vintage, or both. An old coin isn’t necessarily a rare one, nor is a rare coin guaranteed to be old.

However, the difference between the two is important for you, the savvy collector, to understand in order to make the most rewarding choices you can. Above all else, it is important to study the history of US coins in order to buy the coins that are both valuable and interesting to you.

Key Differences Between Vintage vs. Rare Coins

Now, even though the difference between vintage and rare is fairly simple to grasp, it creates a set of differences in terms of various aspects associated with coin collecting. The table below illustrates some of those key variations, including the importance of grading for one or the other.

Rare Coins

A rare coin is a coin that is in short supply. In other words, if a particular coin has only a precious few examples known to exist, then it is generally considered to be rare by numismatists, precious metals investors, and coin collectors. A coin’s rarity can be the function of a number of different factors.

• Mintage numbers: Simply put, if a sovereign mint chooses to issue only a few coins in a series, then the coin has a greater chance of being rare.
• Age: Coins get lost quite easily, and, as time passes, fewer of them remain known to the world. As a general rule, the older the coin, the rarer it is.
• Minting errors: Like all human processes, the minting of coins is imperfect and doesn’t always create exact facsimiles. Thus, errors that occur during the minting procedure, such as double dies, off-center stamps, or the use of incorrect planchets, can produce rare coin examples even if the coin series itself is not rare.
• Changes in government policy: A coin series may endure a sort of forced rarity even if it does not suffer from a low mintage, errors, or age. For instance, much of the gold coinage produced by the US Mint in the early 1900s was confiscated and melted down after FDR’s issuance of Executive Order 6102 in 1933 (and its supporting Gold Reserve Act in 1934). Thus, it is unusual for gold coins from this era to have survived at all, and some coins are all but extinct.

Two of these elements came together to produce the coin considered to be the most valuable coin of all time – the 1933 Double Eagle. Now, 445,000 of these coins were minted, but all but two of them (preserved for the Smithsonian) officially survived the threat of melting. These two official and lawful specimens remain in the Washington D.C. museum to this day.

However, notice the references to these two coins as official. Until 2003, only one other ‘33 Double Eagle was known to exist – a coin given as a gift to King Farouk of Egypt.

Then, the family of a Philadelphia jeweler discovered 10 1933 Double Eagles in one of his safe deposit boxes. So, in all, there are 11 Double Eagles that exist today and reside in private hands.

The group of 10 remain in the care of the jeweler’s family. By contrast, the King Farouk coin has changed hands several times since then, and its 2021 sale for $18.9 million made it the most valuable coin in the world.

Vintage Coins

By contrast, vintage coins are just old. They are coins that are not viewed as modern issues. However, the notion of vintage creates a particular set of questions or elements to consider:

• The meaning of “old” – Old is a subjective term and may not mean the same to every investor. However, for American coins, the generally-accepted date separating vintage coins from modern ones is 1965. In that year, the US Mint ceased production of silver coins, making any coin created prior more valuable due solely to its metal content.
• Not always rare – A vintage coin is not simply rare by virtue of its age. Although age can be a contributing factor to a coin’s rarity, there are plenty of pre-1965 coins that exist in significant numbers.
• Consider historical significance – Much of the value of vintage coinage stems from its coincidence with important historical events. Owning a coin that was present during a particular event or era can be a rewarding and valuable experience for many coin collectors, and these types of coins can have significant value – even if they aren’t particularly rare.
• Beauty is in the eye – Some vintage coins may be valuable for the simplest reason of all – their looks. Coins thought to be particularly beautiful or bearing beloved designs have a value to collectors all on their own, age or other factors notwithstanding.

As we stated above, coins don’t have to be either rare or vintage. They can be both. Needless to say, coins that occupy both designations are usually among the most valuable coins in the world.

Examples of coins that fit the “both” bill include the 1804 Silver Dollar (the “King of American Coins”) and any US coinage stamped prior to 1800. These coins are not only vintage due to their age, but understandably do not exist in great numbers. To own one of these coins is to own a genuine piece of American history, so it’s no surprise that some members of this group command more than $1 million at auction.

Real-World Pricing, Buying, and Resources

Now, while it’s romantic to collect rare and vintage coins simply for the historical value, the reality is that most coin collectors want the value of their collections to increase.

The first thing to note is that there are a multitude of price guides for rare coins out there. However, these resources, such as Red Book or the NGC website, are only reference tools. The actual market price of a particular coin may vary.

Now, we do have a helpful guide about where to buy coins that you can use. However, here are a few brief tips about how to price your coins accurately and stay safe while you buy or sell:

• Don’t just take the first price you see. Compare the price against listings you see with dealers, the prices mentioned on collector forums, and – especially – prices achieved during recent auctions.
• Don’t just collect coins by yourself. Networking pays dividends in many walks of life, and it is quite valuable to join coin collecting clubs and attend coin shows to expand your knowledge of the trade.
• That said, verify any claims you hear – especially if they come from online sources like eBay or Amazon.
• You should also make yourself aware of coins that are frequently counterfeited. Some of them are much more likely than others – in particular, Morgan silver dollars are favorite for fraudsters to ape.

Authentication and Fraud Protection

Unfortunately, the advent of the digital age has proven to be a boon for counterfeiters and scammers. People of all stripes and levels of experience are interested in collecting rare and vintage coins, but beginners are at a decided disadvantage because the difference between a rare coin and a coin worth face value can be difficult to spot.

So, it is vital, no matter your level of proficiency with coins, that you get any coin you want to buy authenticated. In particular, you should be wary if you purchase online, as it is extremely easy to fake things on the internet – especially as AI gets better.

Now, there is a special group of coin collectors that are at a particular disadvantage. If you have inherited a coin collection as part of a family member or close friend’s estate, you may find yourself thrust into the world of numismatics unwillingly.

If you fit that description, we have a couple of guides to help you know what to do:

• Inherited a Coin Collection? Step-by-Step Action Plan
• Selling Inherited Coins: What You Need to Know Before You Start

Checklist to Protect Yourself

If you don’t have the time to read those guides, you should at least consult the checklist below to get started:

• Store them securely. A safe in the closet is better than under the mattress, but a safe deposit box or private vault is a much better option.
• Get them authenticated as soon as possible. You need to know what you have on hand, and there is always a chance that your relative got taken for a ride in the first place.
• Make a record of the collection. Details matter, so you need to be sure to have a clean record of each coin that makes up the collection.
• Take your time to decide what you want to do. Don’t rush to make a choice about whether to keep the collection, sell it, or divide it up in some way.

Preservation and Care

For however long you choose to hold onto a rare or vintage coin, you should take the time to store and care for it properly. The last thing to do is to cause changes to its condition or grade due to your handling of it.

First and foremost, do not attempt to clean your coin(s). Unless you are a professional jeweler or coin shop owner, it is extremely likely that you will damage the coin(s) by cleaning them.

The condition and grade of a coin is not just a matter of its color or gleam. For one thing, older coins have a tendency to accumulate a patina, which is a natural coating that may adhere to their surfaces. Patina is not dirt or damage, but may serve as deeper evidence of a coin’s authenticity.

Additionally, professional grading services can detect even the most well-intentioned cleaning because the abrasions create microscopic channels and damage in the surface of the coin. The two major grading organizations – the PCGS and the NGC – refuse to grade cleaned coins.

You should also avoid touching your coins with bare hands. The oils that we naturally secrete can damage coin surfaces and the aforementioned patina, so if you must handle them, try to wear cotton gloves or otherwise shield them from your skin.

Finally, make sure that the storage method you choose is secure against all manner of damage, not just theft. Proper storage of coins includes both fireproofing and waterproofing. It is also advised that you maintain them in an environment cooled between 65 and 75 degrees Fahrenheit. You should even keep them away from light – light can bleach away patina, too.

Learn how to store your coins properly here.

Collector Motivation & Philosophy

The reasons to begin a coin collection vary from person to person. Here are some tips about the different things to bear in mind as you start your journey:

• There are no wrong coins for a collection. You’ll encounter many different people in coin collecting. Friends, family members, and other collectors will all be more than happy to share their opinions about the coins to acquire. However, you need to assemble the collection that you want. Even if all you want to collect are modern coins that trade for face value, that’s nobody’s business but yours.
• Eye appeal matters for resale. If you are planning to trade your coins, rather than simply acquire them, don’t forget the value of pure aesthetic appeal to other investors. A coin that is neither rare nor vintage may still be a valuable piece if it bears a distinct design, color, or patina. Even if you don’t want to sell, there’s nothing wrong with buying a coin because you think it’s pretty.
• Patience is key to set completion. If you want to collect entire series of coins, you will have to exhibit a great deal of patience. Getting all the different specimens together requires diligence and discipline, and you should be wary of anything that seems too “easy” about getting them together. If there’s value in owning a complete set, no investor is going to give away legitimate members of it for cheap or without difficulty.
• You will never be finished learning. As with any activity, you should strive never to stop your education about coin collecting. Join coin collecting groups in your area or online, and read the different trade magazines that talk about relevant issues. Everything always changes – after all, until 2003, only three 1933 Double Eagles were known to exist…now, there’s 13 of them.

Conclusion

In short, a rare coin is hard to find, while a vintage coin is just old. It is possible for coins to be both rare and vintage, but the two terms are not interchangeable.

However, the simple collection of rare coins or vintage coins may not be a fulfilling goal for you. You may want to own genuine pieces of history or coinage that could have been used by famous figures in the past.

Above all else, you should collect coins because it is fun and rewarding. Join and network with other coin collectors because excitement is infectious.

Be patient, be honest, and be humble in your journey. If JM Bullion can help you along, please let us know!