written by Hynn Munro
How to start a coin collection
Collecting anything is a unique (bar a few exceptions) human trait. The few non-human beings who do collect anything, do it only as part of an instinctive behavior. Animals have, until it can be proven otherwise, no value of any material objects.
Human Beings place immense value on “shining” objects. We walk the fields, see a shiny piece of stone and pick it up to show our fellows: “look what I have found! is it not beautiful?” In many instances the fortunes and misfortunes of human civilizations originated from the value placed on material objects.
Since the very first coin was minted, humans collected.
These collections were for various different reasons. In general, gold and silver are the most popular, because of the scarcity of the metal itself that results in value. Naturally the costs and the capital required associated to obtain gold and silver makes it inaccessible for normal modern man except if obtained in smaller pieces like coins.
decide on a goal
First decide on your goals before you enter the surreal and fascinating world of collecting coins, notes or any other forms of currency – Of Numismatics.
People’s reasons for collecting coins is are diverse as people themselves. Numismatics do it for fun, those that are interested in history, as an investment, as a tax haven or as a business.
Coins for the fun of it
Many folk collect coins only for the fun of it. They have no real purpose other than the enjoyment of having a new or foreign coin with maybe a fascinating story attached to it. A hobbyist, if you like.
Whilst traveling, small change is often kept as souvenirs, to be handed over to family or friends. Or as a remembrance of a certain milestone or remarkable event.
This type of collecting has no real purpose other than just being keepsakes.
Beware: Most “Serious Collectors” start off as casual collectors.
Coins for its Rarity
Many a rare coin was discovered by chance: in the purse or attic of a long departed grandparent, in the vaults of banks, shipwreck finds, diggings, and many other chance discoveries.
The well known discovery in the United States Treasury of bags full of uncirculated Silver Morgan Dollars during the previous century serves as a good example. The coins were worth a fortune and are still in high demand because they are fairly rare.
There are many examples of rare coins across the world over. One of the rarest coins in existence today is the “Single 9 ZAR (Kruger) One Pound. ZAR=Zuid Afrikaanse Republic (South Africa). There is only one known to exist. The owner of this coin can boast to have something very, rare and unique with its value that boggles the mind.
Coins as an Investment
Collecting coins as an investment is a well known strategy to preserve of increase wealth. A “1797 George 111 Cartwheel Penny” might not be that rare with 8,601,600 minted, but if you are in possession of a “Cartwheel Penny” in uncirculated graded condition, you have an investment which will most certainly grow in value over time.
Rare silver and gold coins not only have the advantage of their “bullion” value but also added to its “bullion value” their mintage (how many were actually minted).
collect-ability & uniqueness
There are certain forms of currencies with very high mintage, no real bullion value and not in the best condition which are very collectible.
“Trench Art Coins” is a very good example: coins deliberately defaced by prisoners of war, inmates or bored soldiers. Knowing through whose hands the coins were altered or the conditions or circumstances in which it happens create a connection with the holder and a forgotten period in history. As if it brings one closer to the actual events. It is something tangible from a previous time that add substance and authenticity to the events.
A single coin, even the most humble penny found in the wreck of the “Titanic” has a thousand times more value than its actual face value, because it was on the “Titanic”. History can be wiped of burned books and scrolls but a single coin can survive the worst elements and tell the elaborate story.
In some cases even forgeries are collectible. Certain ones in very high demand.
“Tokens” and “Trade Coins” has a similar collectability: in the absence of official currencies Boundless tokens were issued by shopkeepers, conglomerates, local governments, cities and thieves. The well known “Dove Coins” of Griekwastad (A Town in the Northern Cape of South Africa) are extremely rare, highly collectible and can sell for a small fortune in the right condition.
Crypto Coins
The future of money and trade is certainly digital. We are progressing with the speed of a hungry leopard to a cash-free society.
Crypto currencies are the newest form of trade growing globally. The rise of crypto has capitulated human’s imagination as a source of “free and fair” trade. Crypto currencies like Bitcoin are representative of the development of our modern society.
It may not be beautiful or possible to touch but it is humanity’s attempt to store and preserve value. That can be used for trade.
Where do i start?
with your very first coin
There are certain forms of currencies with very high mintage, no real bullion value and not in the best condition which are very collectible.
“Trench Art Coins” is a very good example: coins deliberately defaced by prisoners of war, inmates or bored soldiers. Knowing through whose hands the coins were altered or the conditions or circumstances in which it happens create a connection with the holder and a forgotten period in history. As if it brings one closer to the actual events. It is something tangible from a previous time that add substance and authenticity to the events.
A single coin, even the most humble penny found in the wreck of the “Titanic” has a thousand times more value than its actual face value, because it was on the “Titanic”. History can be wiped of burned books and scrolls but a single coin can survive the worst elements and tell the elaborate story.
In some cases even forgeries are collectible. Certain ones in very high demand.
“Tokens” and “Trade Coins” has a similar collectability: in the absence of official currencies Boundless tokens were issued by shopkeepers, conglomerates, local governments, cities and thieves. The well known “Dove Coins” of Griekwastad (A Town in the Northern Cape of South Africa) are extremely rare, highly collectible and can sell for a small fortune in the right condition.
Our tip:
The poor man’s gold
For people starting a coin collection do the following before you buy; Do not expect to buy the rarest Silver Morgan Dollar for a few dollars and then expect it to be worth millions in a short time. It is not impossible but unlikely.
Start small and with something you can afford. Start with a coin that you can afford and that would not break the bank. A suggestion can be to skip that one luxury dinner and for the price, buy a coin of the same value.
Consider buying a silver coin. Okay it is not gold but silver is also extremely beautiful, it is just as difficult and costly to mine and mint. Silver is rare with an age old tradition spanning from times before the Romans. Silver is currently affordable a very good carrier and perseverance of value.
Most of all have fun doing it.