The Wonderful World of Coin Collecting

Spanish gold coin showing a bust of Queen Isabel II, dated 1862

The Hobby of Kings- such was what coin collecting was known during the Renaissance times. The reference was quite apt because the hobby indeed required considerable investment which can only be afforded by wealthy people.  From around the 14th century when contemporary coin collecting is believed to have started up to the 18th century, the hobby remained exclusive to the well-off.  The middle class started venturing into coin collecting as a leisure activity during the 19th century as one way of proving their possession of wealth and sophistication. Today, coin collecting is more known as The King of Hobbies for being one of the most enduring past-times all over the world involving people in all levels of society.

Terminologies in the World of Coin Collecting

The term coin collecting is self-explanatory and is essentially collecting coins and other minted legal tender.  The study of currency including coins, paper money , tokens , and other like items is referred to as numismatics. However, the use of the term stuck more closely to the study of coins especially with the development of several sub-fields including   exonumia which is the study of coin-like objects, notaphily which is the study of paper money and banknotes, and scripophily which is the study of stocks and bonds.

A numismatist may be a collector, a coin dealer or a scholar who studies coins.  While collectors derive their joy from simply owning their collected coins, coin dealers are in it for a more professional reason, which is to authenticate and grade coins needed when buying or selling a collection or a single piece.  Scholars view coins as a subject of study in relation to gaining knowledge about monetary devices and the systems related to their use.

Why People Start Collecting Coins

There are three main reasons why a person would want to start a coin collection.  The most common reason is simply to indulge in the fun of collecting coins chosen for aesthetic reasons or historical significance.  Another reason is the desire to develop a family heirloom that can be passed on to the next generation.  Still another is to start a monetary investment that can possibly be cashed in for greater value in the future.

It is quite possible for a collector to be motivated by all these reasons and there is absolutely nothing wrong about that.  The enjoyment, the legacy, and the potential value of having a coin collection  are the very reasons for the continued popularity of coin collecting.  Deciding to start a coin collection will require collectors to eventually consider a method of organizing their accumulation; learning how to clean, store,and grade coins; and finding the best places wherein to buy, sell, or trade coins.

Collected coins are better preserved when stored properly

Coin Collecting Tips

An aspiring coin collector can approach the process of collecting by sticking to a particular subject or period to avoid being overwhelmed.  All countries who make their own coins regularly come out with new issues thus it might not be very practical to have a goal of collecting all coins.  It is probably much easier to collect one of every coin variant/design that comes along if the goal is to collect as much as one can.  Some people opt to collect hoards or a large volume of a particular coin which is not necessarily of high-value.  This is because there is a possibility that the collection might eventually have a high intrinsic value by reason of its considerable number.

Collectors should be aware that there is such a thing as copy collections which are essentially counterfeit coins usually bought by collectors to complement their authentic collection.  Most are produced to pay tribute to the original coins although many are made for less-than noble reasons such as fooling consumers and merchants. The world of coin collecting paves the way for learning and entertainment.

My Say

Collectors who see their collection primarily as an investment must be aware that the high value of a coin would depend on its over-all condition.  Several factors will be considered by serious buyers including the absence of dents and scratches, its luster and toning, and the clearness of the details found on the coins.  Joining a coin collectors’ club or society can be a highly beneficial move towards the development of a collection.