Confused about uncirculateds!

Hi,

I understand what a proof is, but I am having trouble with the uncirculateds and circulateds. I looked at the website for the US Mint and I saw rolls and bags of coins that you can buy but in there description they state that those coins are for circulation. What adds to my confusion is that I go to a coin dealer and tell him that I want, for example, an uncirculated James K. Polk dollar. He agrees to sell me one, and pulls it out of a plastic coin tube, hands it to me, and charges me $2.00. Now, I understand that uncirculated means that the coin has never been touched by humans hands or delicately handled, and circulated means that it has been touched and maybe even passed thru a coin slot on a machine, but where my confusion lies is how is an uncirculated coin that I buy from a dealer any different from one that I can get brand new, never been touched buy human hands from a bank besides the fact that I am paying $2.00 at a dealer and at a bank I just exchange a paper dollar for the presidential dollar. If the US Mint website only sells proofs and coins meant for circulation, where are the dealers getting the so-called uncirculated coins? Please help me out. Thank you in advance.

 

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Ageneral rule is a circulated coin has been used in commerce and has recieved some wear , AN uncirculated coin has recieved no wear , it's a little confusing in that a coin could have been in circulation such a short time it has recieved no noticable wear . So think of unc. as a coin with no wear , and a circulated coin as one that does have wear .
rzage

 

As far as I'm concerned there are different scenarios for uncirculated. Uncirculated should mean that it hasn't been put into public system. BUT, you can still get a statehood qtr from change that would classify as uncirculated due to it not having any wear but a few nics. So I look as uncirculated as a coin with "No Wear".

 

Looks like we posted about the same thing at the same time there zrage! lol

 

I thought that there might have been a difference in the way that they have been struck. So then from what I understand is that there is no difference between the coin I get from a dealer and the coin from a bank except the dealer over-charges me for the coin if I can find both coins in the exact same condition. Thanks again for the help.

 

No difference in the coins, it's just that you know when you go to a dealer chances are they'll have one on hand.You might have to check a few banks before you find one.Dealers have to pay the bills,you can't expect them to sell you one at face value.
By the way,welcome to Coin Talk!

 

Thanks D.T! I know that they have to pay the bills and that I can go to them for an uncirculated coin that was released a couple of years ago. I was just trying to find out if there was a difference between the ones they sell me and the ones that I can get from a bank. I guess if I want to save money I could go to a bank for a coin that has just been released. Thank again.

 

"Uncirculated" doesn't mean not being touched by human hands. It means not circulated and not worn.

 

IF you really think about it, it becomes a thing of terminology. Circulation of a coin starts when it leaves the Mint. As it leaves the Mint, it is now circulating to some degree. It then travels by some means further indicating circulating and then ends up in a bank, store, etc. which means more circulating. A coin could actually circulate over many thousands of miles and never really see anything to do with wear so it could still be considered MS or Mint State.
Naturally the above would indicate the terminology of Uncirculated is really intended to mean a coin that shows really no signs of being circulated or obvious wear.
I never did like that Uncirculated name for coins. Sort of like those Unsearched roll things.

 

Yes, Doug, how about something like "not circulated and/or not worn to the extent that it can be detected"?

 

Or a grade like BCNW = Been in Circulation, Not Worn.
Or SLN = Sure Looks New

 

Great minds think alike .:goofer: LOL
rzage

 

Another thing you have to understand is what the mint means when they talk about coins (at least internally) What we would call business strike uncirculated or Mint State coins they call circulated or circulation coins. When they say uncirculated what they mean are non-proof coins intended for placement in special sets such as mint sets or their "Uncirculated silver eagles", the ones with the W on them. When they say proof they mean the same thing we do.

The term uncirculated confuses a lot of new collectors because it has nothing to do with whether or not the coin has ever circulated. It simply means that the coin shows no trace of wear.

 

I like that. I think these terms should be incorporated into the 70 point Shelton grading system, 'specialy the SLN designation (almost sounds like SNL)....

 

How about, just, no evidence of circulation wear on the face of the coin? Thus, I testify, I got it in change at McDonald's...I mean it, I mean it, I mean it, I mean it. Doesn't matter, any. If there's no evidence of circulation wear on the face of the coin, it's uncirculated; a.k.a, mint state.

 

I think McDonalds should be added to Shelton as well....

 

Now I think I saw that one coming.

 

Ok, so what I understand from reading on this forum and from other liturature is that the mint creates two qualities of coinage, Proof and Business strike. The business strike is meant for circulation, and the dealers buy these coins directly from the mint to prevent the most minimum amount of wear to the coin, but you can find the same quality of coinage at a bank or other places if you are lucky. The coinage that numistmatists know as uncirculated are business stike coins with little to know wear to maintain mint-state quality. Am I correct? Now another question that I have is the coins that the mint has in their souviner sets, are those the same business strike coins that we get from coin dealers, and the mint just set aside some bags of business strike coins for their sets? Thanks again in advance and Thank you to all that have replied so far.

 

That's a key point. From a market perspective, if there is no visible wear, for all practical purposes it's uncirculated.