Short History of the Origin of Coin Collecting and the Relation to Numismatics

Historians don't agree when exactly numismaticsin circulation than what was considered their
started gaining importance. History proposes thatcurrent face value. So, numismatics actually refers
the first traces of coin minting that can be seento the value of a coin, whereas coin collecting
date back as far as 11 centuries B.C.refers to the hobby.
Human communities have never failed to buy andAnother example of numismatics that could be
sell supplies, stimulating commerce amonggiven was the run during the seventies in
countries, cities and each other. As commerceSwitzerland on all coins minted before 1968.
became more generalized and goods startedThese contained such a high amount of pure
flowing from afar, an acceptable commonsilver, that when the world market price for silver
exchange denominator had to be found for thestarted reaching heights never seen before, it
payment of goods.became more interesting to melt the coins for
Soon transactions took place with carefullytheir silver content, turning a nice profit in the
weighed precious metals like gold or silver. Twoprocess, than to keep them or continue paying
main advantages emerged: it became obviouswith them.
that swindlers could not operate easily any moreThe logic behind this action is easy to understand.
and that commerce was facilitated. It didn't takeWould you pay for a bottle of water worth 35
long for standardized coins to appear.cents with a gold coin that fetches 1000$ on the
To this day, in some countries, people still acceptmarket?
payment in goods or propose goods or animals inThis had two consequences: Swiss mint stopped
guise of payment. Some South Africans acceptproducing the high grade silver coins, and all coins
cows as payment for "lobola", or dowry. In Northminted before 1968 became rare, which made
Africa, wealthy merchants merrily proposetheir collector value rise.
fathers to blonde daughters a string of camels inIn the end, knowing the history of coins has a
exchange for the future bride.direct relation to coin collecting value and the
Numismatics could be described as the study ofnumismatist's fine tuned sense of the value, or
the evaluating of the true worth, or true markettrue market price of a coin. Not knowing this
value of a coin. Julius Caesar was known to payhistory will jeopardize his ability to spot real
more for some type of coins that were no longeropportunities.