Why do you collect Coins

Discussion in 'Numismatics' started by JamesG, Nov 8, 2012.

  1. JamesG

    JamesG Member Silver Stacker

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    Hi
    i wanted to start a topic here on why do you collect coins?

    There has been a lot of negative sentiment in regards to coin collecting over the past year and i would like to share some of my thoughts on coin collecting. please feel free to add your thoughts too.

    For many years i have been asking this question to my customers on what made them collect coins and what do they find enjoyable to collect? .

    Most Australian's do not realize they are in fact coin collectors, YES the a Huge portion of Aussie are collecting coins in one form or another. How many times have you picked up a 50c piece and said " oh this is interesting " and pop it in a jar for safe keeping. If you have done this, then Congratulations you have just realized your a coin collector.

    I have been in this industry for a number of years now and can say there is a common trend of thinking among the general public, this is a common belief that collecting coins is just too expensive... I CANT AFFORD IT!!. BUT please rest assured everyone can find enjoyment in collecting coins without putting a hole in your pockets.

    Gold/Silver is amazing to collect but think smaller, you don't need to collect precious metals if your on a tight budget. Australia is one of few countries in the world that has a vast amount of interesting circulation coins available to collect. Why not start thinking about collecting the Australian 50c,$1 and 20c pieces. Each year there is a selection of different designs in your circulation change. People find great enjoyment collecting and trading these base metal coins, you will be very surprised on what a full set of Australian 50c pieces is worth on the open market. The key is the find these coins in Uncirculated condition, get in early when they are released and find the best possible coin.

    If you would like to collect silver coins and have limited funds to spend, there is a great way is to collect some fractional silver and maintain your wealth. You don't need to spend a fortune, Start collecting smaller amounts of silver coinage and because we live in such a great country (Australia) the government has provided us with the best fractional silver coin to collect. If you haven't guess it yet its the 1966 Australian Round 50c pieces. This Magnificent coin contains 80% silver at around $11.50-$12.00AUD a Coin (spot Silver $30.61 08/11/2012) this has to be by far the best fractional silver coin to collect and stack. Three of these beauties make up 1oz of fine silver, easy to trade and wont hurt the pocket. Alot of people find great enjoyment watching there 1966 Australian round 50c stack grow.


    I personally think that collecting has to be fun, the most interesting thing about coin collecting is finding that one coin that makes you go WOW!!. One might ask how do you find a coin that makes you all waterier in the eyes, mouth drooling and head thumping. Well i cant give you that answer as i haven't found one yet, got close one year i had a head spin but not quite there yet. That is why i am still collecting i don't think i'll ever stop.

    Share your story on why you collect coins. I collect because i enjoy it how about you?


    James
     
  2. Auspm

    Auspm New Member

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    I'll give you two basic reasons why (and I'm assuming you're talking about collectable numi coins?)

    1 - 3rd party counter risk. The recent issues with the Perth Mint releases should awaken you to the prospect that holding numismatically valued product opens you to a 3rd party counter risk. The premium value of your investment is tied specifically to a 3rd party holding their end of the bargain.

    The very same principle why I am against fiat currency as a standard.

    2 - Paying for Numi product diverts your investment dollar away from simply buying more ounces.

    If you're a long term investor in PMs, you'll know spot moves over time. The more spot moves, the more you have to make up in premium costs at the time of purchase just to break even with buying more ounces.

    To put it visually :

    Let's assume Silver spot is $30 today and you have $800 to invest.

    You can get 10 Numi 1oz coins at $80 a pop or you can buy about 20 1oz coins of basic bullion coinage.

    Now move spot to $70 :

    You 10 Numis are 'worth' $700 on spot value (10 x 1oz) and your 20 'basic' bullion coins are now $1400 spot value.

    So your 10 Numi coins now have to make up $700 (or $70 PER COIN) in numismatic premium ALONE just to break EVEN with simply buying more ounces.

    Maybe you could do it with right purchase? Maybe not.

    Question is, which do you think is more likely and less risk?



    Don't get me wrong, I will dabble here and there for kicks (there's a collector to some degree in all of us), but when it comes right down to it, I'm strongly in favour of sticking to the fundamentals and that's where the largest slice of my investment dollars sit.
     
  3. hem9

    hem9 Active Member Silver Stacker

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    I think auspm stated it quite comprehensively. Numismatics are life a get rich quick scheme (1 red back :1000 junk). You have to ask yourself whether your investing or gambling.
     
  4. Austacker

    Austacker Active Member

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    I don't think that is the point of the post. I think the comment here is look at what is available even in coinage today. If you find some nice condition coins in UNC condition put them away. You may get a set that is worth far more than the face value. This is not taking away from purchasing bullion. A 50c here a $1 coin there etc... This does not break the bank and may give a good return. Worst case you still have face value anyway ?

    I dabble in too much of everything. The problem with that is you are all over the place with no direction. In the few years I have collected everything from Mint Rolls to Pennies to 1c pieces and the good old PM Numis as well. My results have been mixed but always about even. My biggest wins have in fact been from sourcing PM Numis coins, in saying that I have a lost a bit on those as well. Overall well in front though.

    Now my collections have streamlined to a few areas. I still dabble and grab the odd coin here and there but now much more focused. In no real order -

    1. Australian Pre-Decimal (Main focus Penny's) Proofs and UNC
    2. Australian Sovereigns :)
    3. Chinese Panda's (Hows that for variety)
    4. Australian Notes (Pre/Current)
    5. Lunar Bullion/Proofs
    6. Key decimal coins (circulated)

    I do have lots of other stuff but that is the focus now. I am in the process of selling off all of the rest that I do not want to pursue any longer. I wish I had done this and not got involved with everything... So my advice is keep it simple and try not to be all over the place.

    To me it is the hunt for the filler in a series or the coin that someone has missed, or the history of the coin etc...

    Finally I totally agree about collecting currency however I would add, once you have a set if that is your goal. Just focus on the rarer ones in the series. Keep as many of these as you can find. If you know the ones, make a simple check sheet to go in your wallet for easy reference. I have one laminated with the key dates I am looking for on me at all time.

    Finally, if nothing else it is relaxing and nice way to spend some time. I occasionally get my daughter drop in and spend a bit of time helping sorting and picking coins she likes. So that is worth more to me anyway :)
     
  5. Auspm

    Auspm New Member

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    Yep, good point as well. Could have read it both ways.

    I wouldn't say I'm a numi expert by any means on modern currency coin issues, but I know the basics and have my Renniks Australian Coin and Banknote Values reference if I'm not sure.

    If I find something the triggers the memory I'll generally put it aside and check. You never know!

    Trouble with modern numi's though is that the real rarities to make it worth your while are few and far between - but if you get one in your change, why not put it aside?

    I'd draw the line at actually *buying* a numi coin though, I'd just consider that a lost opportunity to buy some silver or gold instead.

    I've got a lot of older coins though in great nick from metal detecting. Many coins lost out of pockets around time of issue can remain in remarkably good condition sitting in the ground as opposed to floating around in circulation.

    If you want a crack at potential numi coins - try metal detecting! ;)

    I'm still looking for a 1930 penny, but you never know! ;)
     
  6. Goldmember

    Goldmember Member

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    I collect Numis for the feeling of Australian history.A collection of Australian pennies of every year since 1911,coins that were around in WW1,WW2,etc.

    Just need the 1930 Penny to complete my collection!

    Plus Florins look awesome when shined up(even though thats blasphemy to some!)
     
  7. markcoinoz

    markcoinoz Well-Known Member Silver Stacker

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    I am only a newbie in stacking.

    Bought Lunars - Kooks - Pamps - some different bars to start of with.
    It was like buying lollies at a candy store. Then started collecting Pre-decimal silver coins
    and reading a fair bit of the history and learning a bit about what makes a coin special apart
    from its rarity. I know you are not supposed to clean them. However, every 1966 .50 cent coin
    I buy, out comes the Mckenzies.

    They are just an easy coin to collect.
    - 1 year only
    - 3 = 1oz
    - Recognisable
    - Easily traded

    I also like the Florins, especially the earlier .925 silver content.

    Recently I bought a bulk lot of mixed UK and Aus silver coins.
    Got them for less than spot.
    Thought to myself, these coins need a good dose of Mckenzies.

    Then I noticed this 1916 English Florin that had very little wear, still
    had eye appeal, plenty of lustre, still had all the high points and sharpness, no dents,
    and had toned really well. Compared it to other ebay florins from the UK and IMO mine
    was by far the best. No way would I clean it by taking the ageing away from it.

    Anyway, that is one coin I will keep. At some stage I may get it graded.

    My wife asked me why people collect coins.
    I said to her "Suppose it depends on the person.
    Some collect purely for stacking investment.
    Whilst others collect for the numismatic value and rarity."

    Not sure where I fit in as yet.

    As with antiques and fine art, fine wine, there is a certain amount of history attached and to some degree
    romanticism with it. If you love history, then I can think of no better way than holding a piece of history
    in the way of a currency. A friend I have known for 15 years has been collecting the various US Coins.
    I didn't even know he was a collector until we struck up a conversation about the Union & Confederacy.

    May not make you rich, but it is a fantastic way of gaining insight of the political and economic times
    of various countries.

    Cheers markcoinoz
     

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