As you likely remember from part 1 article, there were many instances where America had a difficult time with its currency from its foundation in 1776 through the civil war. Mainly, the difficulties arose around the areas of paper money, inflation, and fiat currency as we see Americas first attempts at these. After the civil war, we see many changes in paper currency and the public’s perception on it which eventually leads to the financial system of modern times; which is based upon government policy opposed to gold and silver. Silver Certificates Silver certificates were first produced by the government in 1878, and were produced until 1963. Unlike the greenbacks which were created during the civil war era; these notes represented physical silver and could be redeemed for such on demand until 1964. These notes circulated widely, and were very important in the devaluation of American currency because they vastly increased the public's trust in the government and paper currency as a whole. Additionally, the public accepted paper currency at an increasing rate during this time as inflation starts to have an effect on the size of peoples purchases in terms of dollar amounts, where start to find it much more convent to carry $10 in silver certificates than 10 silver dollars. Prior to this, people would not be spending $10 in the first place! Gold Certificates Similar to silver certificates; gold certificates represent physical coinage and could be exchanged for such on demand. Interestingly, they were produced well before silver certificates as they were authorized for production in 1863 as opposed to 1878! The main difference between these and silver certificates, is that they represented gold as opposed to silver where they were produced primarily to facilitate commerce between banks. Amazingly, in 1934 the government produced the highest denomination ever where a $100,000 note was created! The Federal Reserve Act of 1913 Amid the aftermath of the economic crisis and bank run of 1907, the federal government felt that they should create a federally operated bank that would be other banks last resort for borrowing money. The federal reserve act is very important in understanding the devaluation of American currency, because it created the federal reserve which changed Americas financial system forever. Amazingly, while creating this legislation it was determined that there was more paper currency in circulation than the gold that the government had in their vaults. This made it to where the requirement was changed to where the government only had to have enough gold in the banks to represent 40% of the paper currency in circulation! Additionally, the federal reserve provided the government with more tools to regulate the economy, where bonds from the government and paper currency from the federal reserve is currently the foundation of the money supply. The Gold Act of 1933 In order to bring the economy back from the great depression; in 1933 Franklin Roosevelt enacted Executive order 6102 which changed Americas economy and currency forever. This excutive order required every citizen to exchange all of their gold bullion, coinage (that did not have any recognized numismatic value) and gold certificates for paper currency where they were permitted to only keep the equivalent of five ounces of gold per person! This provided the government with the tools to follow popular economic theory of the time where they believed that increasing inflation could be used to help the economy. After all of the gold was confiscated, the government rose the price of gold from $20.67 an ounce to $35 an ounce, which was a crucial step in bring the economy back to where it was. Unfortunately, this legislation also made it to where individuals could not exchange their paper currency for gold, where only foreign nations could in order to keep the strength of the dollar up. Also, this brought the end to gold coinage in circulation, where all of the coins that people spent were either made up of base medals or silver Clad Coinage and the Coinage Act of 1965 One of the largest changes in American money occurred due to the coinage act of 1965. In the early 1960s, there was a sharp rise in the price of silver where it was becoming more and more difficult for the government to produce coins in a cost-effective manner. In fact, the price got to be so high that in 1963 there was a dollar worth of silver was equivalent to the amount of silver in a dollar coin. This caused the need for change in the nations coinage system, and the creation of the coinage act of 1965. Under this act, the federal government started to produce dimes and quarters about of copper and nickel “clad” instead of the 90% silver and 10% copper composition that was the norm ever sense 1794. Additionally, they made it to where silver certificates could not be exchanged for silver at banks where they could only be used in the same way all other dollar bills were. Interestingly, it was a requirement for the government to have an average of 15% silver in circulating coinage after this point, which was solved by producing half dollars out of 40% silver and 60% copper and nickel which were produced until 1970 1971- America is Taken Off of the Gold Standard. In 1971, the American monetary system changed forever with the presidency of Richard Nixon where America was taken off of the standard that was first enacted in 1933 by FDR. In the 1960s, France started to lack trust in the America monetary system which caused them to exchange their American dollars for gold; depleting the governments reserves extensively. After this point, money obtained value from various government policies that controls inflation and the money supply. Charge Cards, Credit Cards, and the Credit Industry Charge cards are the economic backbone that lead to the birth of the credit industry, where they were the first devices that allowed customers to purchase goods on credit without a formal loan. Obtaining a basic history of the credit industry is crucial, because it shapes modern societies perception on money and the economy as a whole. These cards were first produced in the 1890s, were relatively difficult to attain; first made out of metal, they were considered to be a status symbol by those who had attained them. Eventually, they became more and more popular until credit cards were first invented in the mid 1950s. As borrowing money became more and more popular, mainstream credit cards were produced in the 1960s and society was changed forever. Ever sense then, people have been purchasing goods on credit more and more, where small purchases do not seem to affect people because they simply do not physically see the money depleting from their personal reserves. This has led to increased amounts of credit card debt from society as a whole, where many people live in a social status that they simply cannot afford. Amazingly, right now only about 3% of the money supply is in a physical form while the other 97% is held electronically in banks. This, combined with interesting monetary techniques and a high federal debt is likely going to make the economy fairly unstable in the future. Fortunately, many other countries have also debased their coinage and devalued their currency, which in my opinion is the biggest thing that sets modern times apart from history. Primarily, we must keep in mind that the amount goods and resources in society is not changing any time soon, so as long as trade can commence and optimal situation will be found for all parties involved, and if the amount of money is limited in society we can help prevent economic trouble for everyone. I really hope that you enjoyed this article, and please keep on the lookout for a book that I am currently writing which will discuss subjects similar to this article! I hope that you great day, and have a good time collecting! Another great way to protect yourself from anything bad that could happen in the economy is to purchase gold or silver coins which are available from Let’s Start A Coin Collection thorough Facebook and Ebay!
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Hello, as advised in the earlier article there are many ways that you can grow your collection simply by knowing where to look. Today, I would like to make a quick post to show you that these tips actually work and what I have been able to add to my collection through some of the methods in previous articles. Many of you likely do not know this, but I am currently a Courtesy Clerk (AKA Bagger) at Kroger, and as you likely can imagine customers are consistently throughout the day while I am at work. This oftentimes leads to a lot of people dropping change, and simply forgetting about it. Additionally, there is a Coinstar machine where on occasion people exchange their change for cash, and forget to pick up the change that is rejected Below is an image of the coins that I have been able to obtain either by picking them up off of the floor, or through getting the change that people would forget at the Coinstar machine. Believe it or not, I was able to make these additions to my collection FOR FREE! As seen in the picture above in the top row there are three wheat back pennies (all of which were found on the ground), with the dates as follows: a 1946 p, 1955d, and a 1958 d. In the row below that there are two foreign coins that were actually found in the reject portion of a Coinstar machine. On the right is a copper nickel 1 franc from France that was minted in 1960 which was been cleaned in the past. To the right of that coin there is a Canadian quarter that commemorates the Olympics that was going to occur in Vancouver Canada in 2010; where ice hockey is commemorated in particular This particular. Lastly on the bottom row you see a silver Roosevelt dime from 1964 that was minted in Denver and is in AU condition. Believe it or not, the odds that you are going to find a rare, foreign, or unique coin in a Coinstar machine is relatively high in comparison to other methods such as coin roll hunting. This is because, Coinstar machines determine a coin’s face value primarily by its weight and composition, so they tend to reject most silver and Forign coins. Additionally, if coins are stuck together or damaged it simply will not register the coin during its first time around, and reject it. Please keep in mind that while the machine is being used there is a lot of noise present from the process, so it does not register with a lot of people that some of their coins are getting rejected. By using the “Coinstar method”, you are not taking advantage of people either, because you are not wasting anyone’s time, and even if people remember that they forget to get their change the odds that they will drive back to the machine is extreamly slim. In fact, the odds are so low I have never heard of anyone doing this! Furthermore, there have been numerous other occasions where I have actually found normal circulating coins which were rejected by Coinstar machines, which can easily be used to purchase coins such as the ones depicted above. In fact, along with the silver dime there was an additional 40 cents, and along with the two foreign coins there was 16 cents! There were two additional occasions where I have obtained forgotten change, where on one occasion I got 35 cents and another I obtained 55 cents! Additionally, ever sense September 10th I have put all of the coins that I have found on the ground into a separate jar just to see h ow much money I actually find on various floors, where to the date I have been able to obtain $7.68 (which is depicted above!)! This truly goes to show that every little bit adds up; as I could purchase 6 silver dimes with this amount of money!
Always keep in mind that you will never know what you will find until you check! I actually know people that have found silver half dollars and quarters in Coinstar machines; along with various other amazing coins! I really hope that you enjoyed this article, and please keep in tune for more! If you have had any cool Coinstar or floor coin finds please post it in the comments, or message them to me through Facebook via my page” Let’s Start A Coin Collection” as I would be more then happy to see them!
Many of us are on a very limited budget when it comes to coin collecting, but believe it or not if you know where to look you can find some fantastic coins for $10 or less! Additionally, there are even a few ways to make a bit of money online and offline to grow your collection 1) Coin Dealers "Junk" BoxesMany coin dealers have coins that are filled with inventory that they do not want to spend a lot of time selling, listing, or displaying them because they do not make them a lot of money. In these boxes, there are many different coins that you can purchase for ten dollars, and oftentimes less than that! Oftentimes these boxes are overlooked, but if you are willing to spend a few minutes looking through them you can find some fantastic coins to add to your collection! 2) 90% Silver BoxesAt coin shows and shops many dealers have coins that they sell primarily for their silver content! Prior to 1965 all dimes, quarters, and half dollars were 90% silver, but you can actually find coins that date back to the 1940s and oftentimes even to the 1920s or before! Although these coins are not in the best condition, but they are defiantly nice pieces; especially if you do not already have them in your collection! When searching through these boxes, please keep in mind “toned” coins that have unique colors as people oftentimes pay a bit more for these kinds of coins. 3) Coin Dealers 50% off BoxesThese boxes primarily consist of coins that coin dealers are simply trying to move out of their inventory. Usually these coins are worth just a few dollars, but there are oftentimes high quality products. They are similar to coin dealers junk boxes, but please keep in mind that just because a coin may be 50% off from that dealer does not mean that it costs twice as much at the other dealers table. Oftentimes coin dealers have extra high markup so they can sell them for 50% off! 4)Large Buckets Of Wheatback CentsOftentimes, coin dealers have boxes or buckets of common coins that are of the same kind, which are great places to look for coins! Oftentimes dealers simply do not have the time to look through every common coin that they have when they have a lot of them. This is especially true when it comes to coins such as wheat back pennies, wheat back penny that they get in large lots to determine which ones are worth 15 or 20 cents opposed to just 5 or 10. Yet, oftentimes coins that a bit harder to find such as roles of those minted at San Francisco, or of a higher grade such as AU or EF in some cases are worth a small premium, as well as some of the semi key dates which can be found. When looking through these lots, have a knowledge of which dates are worth a bit more than others, and keep on the look out for pieces that are graded in EF or AU condition, or from the San Francisco mint! A few things to look out for are listed below. Wheat Back Cents
5)Coinstar MachinesWe all know that coin star machines are great ways to get cash for large amount of change, and that reject dirty coins, especially the first time around; but what most people do not know is that they reject a lot of other stuff. Coinstar machines are known for rejecting foreign coins, silver coins, and other coins that are just plain weird to the point where it pays off to check these machines. Oftentimes the coins that you will find are not worth a lot, but if you get super lucky you might find a silver dime or nickel. In fact, just last week I got a French franc from 1960, and a Canadian quarter from 2007! Always remember, even if you do not find a cool coin in a coin star machine, if you find something then it can be spent to buy more coins. Along with those two foreign coins I also found 16 cents which is more than enough to find a few wheat back pennies. 6) Underneath The GroundIf you have a metal detector, then going metal detecting is a great way to find old coins! Oftentimes, people dropped coins that they had a long time ago, and they were never found. I personally know people that have found coins that go back to the 1800s, where silver coins have been found many times before! It is always a good idea to make sure that you have peoples’ permission when searching old properties to make sure that you do not run into any trouble. Still, even if you do not have a metal detector, keep on the lookout for change in places where people might spend or receive change, as every penny can add up to help you grow your collection! 7) Older People That Are Looking To Sell Their Coin CollectionMany older people used to collect coins when they were younger, and oftentimes because they are not looking to make a large profit on the coins that they have are willing to sell their coins for less than coin dealers! This is especially true if they have been out of the numismatic market for a long time, or if they used to set aside silver coins in the mid to late 1960s! When taking advantage of this method, please always make sure that you are obtaining a good deal not only for yourself, but that is also fair for the seller. Even though oftentimes these people have fantastic collections, they likely do not know how much their coins are worth so it is your responsibility to help them.
Well there you have it! I hope that the various ideas and methods discussed above will help you grow your coin collection while on a small budget! Personally, I have taken advantage of some of the methods discussed above, and they have helped me grow my collection and add great pieces, especially when I was just starting out; and I hope that they work out well for you too!
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Author: Brandon Spiegel.
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