What will become of your coin collection after you go to that big coin convention in the sky? We probably do not give enough thought this very real consideration. We are having too much fun with our coins here and now to make plans for what to do with them later. That can be someone else’s problem. Well, it really will be a problem unless you start planning for the future and make clear what it is that you want your heirs to do with your collection. There are many options, but the worst of all is doing nothing while you still have the opportunity. The best course of action is to have an up-to-date will with all of your wishes carefully explained.
In the worst case scenario coins are left to a spouse who knows nothing about them or the collection. Disposing of them can be a trying and sad experience. Where should they be sold? When, and how? To one who knows little or nothing about these things it can be a troubling and expensive proposition. And there are few agencies or professionals to turn to for advise. For some people, there comes a time in life when it seems appropriate to do something about disposing of their holdings in one way or another so that relatives will not have to be faced with that burden. The usual method is to sell the collection as a whole, or in parcels, to willing buyers, or to place them all in an auction.
Many professional coin dealers are specialists at disposing of collections in situations like that. And they can be designated in a will as a resource for liquidation of a deceased’s holdings. A professional’s insight into market timing and sales opportunities can really pay off in a situation like that. There is another option beyond selling a collection before or after death. No, you can’t take it with you; but you can donate some or all of your coins to others. And if you do it right, it could become a tax advantage for you or your estate. The intricacies of using tax-exempt organizations for philanthropic or tax-avoidance purposes is beyond this article, but you can get such advice from your tax consultant or the IRS.
Generally speaking, collectible items held over one year will be considered long-term capital gain property. For any items that have been held for less than one year, the deduction is usually limited to the price paid for the property. Items that are donated to charity may qualify for a deduction of the full fair market value. The American Numismatic Association, and the American Numismatic Society are both considered appropriate places to donate collections of numismatic items. Each of them will assist potential donors in making contributions. Both appreciate and treasure the coins that have been donated to their cabinets over the years.
Interesting collections of coins are always appreciated as gifts to relatives and friends. Young people especially like the thrill of learning about history and the past through coins. They are all potentially family heirlooms that should not go unattended. If you have neglected this important part of your hobby, now is the time to tend to it.
Handling Your Coins Now
If your collection consists solely of coins encased in solid plastic then you do not have to worry much about the danger of any damage to them through handling. But it is rare for a collector to go through life without having any “raw” coins that are not protected. Even if you do not have any such coins, you are bound to run into them at times, especially when viewing someone else’s collection. Knowing the proper etiquette, customs and safety precautions, about handling those coins is essential to good conservation.
First, and foremost, it is necessary to always remember that the surface of a coin is actually very delicate. A coin may look sturdy, but that shinny mint luster is only a few microns thick, and can easily be destroyed by careless handling. We all have oils and acids on our fingers, and these are ferocious enemies of metals like copper and silver. The slightest finger mark on a coin can leave a print that will last forever. We all know that coins can only be handled by the edge, between two fingers, and that they should always be held over a soft pad in case one should be dropped. But we sometimes neglect to provide for other dangers of coughing and careless handling. Wearing cotton gloves, and a face- mask if you have a cold, is the only sure way to protect coins from harm.
Some people prefer latex gloves to the soft cotton kind. They say coins are easier to handle and less likely to drop, but they do contain sulfur and so they are definitely not recommended. Wearing cotton gloves, even when working with encapsulated coins gives a measure of protection, and is a good practice. Using them to examine raw coins is essential. Be sure that they are always clean and dust-free because dirt and dust can become embedded in the fibers and make the glove abrasive. You can wash cotton gloves and use them time and time again. Just be sure that you do not clean them with bleach.
If you get caught short and do not have gloves handy when needed, use a clean soft cloth or handkerchief instead. If you must handle coins with your bare hands, be sure that they are freshly washed and remove any rings, watches or bracelets that may scratch a coin.