“Have you ever knowingly spent $100 on a candy bar or $50 on a soft-drink? As ludicrous as the concept sounds, there is no doubt that you have unintentionally done this numerous time without knowing it,” is how authors Brian Allen and Ken Potter begin the new edition of Strike It Rich with Pocket Change, now available from Krause Publications. As more collectors and general coin enthusiasts are drawn to the treasure-hunt appeal of error and variety coins, interest in everyday coins is increasing as people take a closer look at the change in their pocket.

The U.S. Mint’s popular state quarter program and introduction of new nickels and a new dollar coin series has produced new discoveries, while demand for changes in U.S. coinage has generated greater attention and interest from the public. Thus the need for an updated version of this book, which helps make sense of it all and gives greater meaning to phrases including “double die,” “double edge-lettering”, trails,” “clashed die” and “die dents.”

In this new edition of Strike It Rich with Pocket Change readers learn about the different types of errors and how to spot them in varying types of coins, using the unique and useful combination of more than 350 close-up photos comparing properly minted coins with their error counterparts and identifying details featured. In addition, the authors’ insights help dispel common myths about error and variety coins.

Among the coins included in the listings are Lincoln Memorial cents, Jefferson nickels, Roosevelt dimes, Washington quarters, John F. Kennedy half dollars, and state quarters. While the listings focus on the more valuable rare coins, the principles discussed throughout this book can be applied when researching and inspecting any coin for possible errors.

numismaster.com explains why it always makes sense to collect the key coins in a series first, even though many collectors don’t.  The article explains the key coins for several series, such as Walking Liberty half  dollars

From the article:

“Coin collectors are often advised to buy the key coins in a series first, as these are the coins most likely to appreciate. Yet, despite the wisdom of this advice, few collectors actually follow it.   A key coin is just what the name implies: It’s the key that unlocks the door leading to set completion. Without this coin or coins, you’ll never fill all the holes in the album.

Of course, that’s also true of the most common coin in the set, but the difference is that the common piece is nearly always attainable, in any condition you desire. The key coin, on the other hand, is often simply not available when you want it, or it may not be readily available in the grade you want.”

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=6327

If you are an American with a self directed IRA, you may be interested in making a coin collection part of your portfolio.  However beware, the IRS will not necessarily approve.  The agency will allow your IRA to invest in gold, silver, platinum and palladium, but not collectibles.  In other words investing in the metal is acceptable, but not if it’s in the form of an attractive coin worth more than the value of the metal.

Coin categories that the IRS generally allows include:

- Coins specifically listed in the Internal Revenue Code and minted by the US.

• American Gold Eagles
• American Gold Buffalo coins, although the specially processed proof version of this coin is not acceptable because the value of the coin is grater than value of the metal.
• American Silver Eagles.
• American Platinum Eagles.

Note that if the coins have been graded by certification organizations and placed in  “slabs”, they will probably count as collectables and not be premitted in IRAs.

- Some coins issued by mints of other nations that also meet the fineness requirements to be an IRA investment:

• Australian Nugget (Kangaroo) Gold coins..9999 fine.
• Australian Kangaroo and Kookaburra Silver coins .999
• Australian Koala Platinum coin .9995 fine
• Austrian Philharmonic Gold coins .9999 fine
• Austrian Philharmonic Silver coins .999 fine
• Canadian Maple Leaf Gold coins .9999 fine
• Canadian Maple Leaf Silver coins .9999 fine
• Canadian Maple Leaf Platinum coins .9995 fine
• Canadian Maple Leaf Palladium coins .9995 fine
• Mexican Libertad Silver Coins .999 fine
• Isle of Man Noble Platinum coins .9995 fine

Sadly though you can’t hold the coins personally if they are part of an IRA.  Your IRA custodians will require that the coins are held in a depository and you probably won’t get to see them unless you take them as a distribution upon retirement.

Reuters reports that mints around the world are reporting an increase in demand for gold coins, reflecting the soaring price of the metal itself.  The Royal Canadian Mint for instance quadrupled its production capacity last year because of demand for gold coins.  The article gives other examples of mints reporting similar rises.

US coin output fell by 30% last year to the lowest level in 10 years as the economy struggled.  In 2008 the US Mint produced a mere 10.1 billion coins.  Reduced demand from coin collectors is partly to blame:  the Mint cites diminishing consumer interest in collecting the quarters issued for each of the 50 states.  However the struggling economy is also playing a part since fewer cash register transactions mean less need to provide change.  Increasing use of debit and credit cards may also be contributing to a long term decline in the number of coins produced.

The Denver Mint accounts for just over half of US coin production with the rest from Philadelphia.