The Pleasure (And Profit) To Be Made Collecting Coins

The first coins ever invented were probablybenefit of this strategy is that the value of your
stamped ingots of electrum, a mixture of goldcollection will not be vulnerable to the vagaries of
and silver, created by the Lydians, a people offashion. On the other hand, it is not necessarily as
Asia Minor, in about 650BC. The most famousinteresting as specialising in one or more areas and
Lydian was King Croesus who introduced pureyou may miss out on the spectacular growth
gold coins and was the inspiration behind thewhich can be achieved with a little speculative
expression 'as rich as Croesus'. Will you becomeforesight. For example, up until the late 1970s, little
as rich as Croesus yourself if you invest in coins?attention was paid to the intriguing Islamic
With careful planning the answer could well be incoinages of the Middle East. Arabs themselves
the affirmative. Because according to specialists,were not attracted to their past coinage and
Noble Investments, long-term coin collectionsconsequently the market for Islamic coins was
spanning a period of 50 years or more haveconfined to a small band of dedicated scholars and
achieved compound annual returns of 8.7% -collectors. However, all this altered when Arabs
10.5% a year - which certainly matches ordeveloped a growing awareness of their cultural
betters just about every major stock market inheritage and began to form collections of
the world. Furthermore, short-term performancenumismatic treasures.
has also been strong. A random portfolio of goldShould you decide to build up a collection you
and silver coins selected from Spinks auctioncould do so by choosing a theme (such as coins
catalogue in 2000 would have shown a compoundfeaturing a particular animal); a type (the technical
annual return of 12%.term for a main design of coin, issued in a
There is plenty of other evidence to suggest thatparticular country, state or region); a denomination
coins would currently make an addition to any(such as gold sovereigns); a ruler (collecting an
investment portfolio. 'Investment-quality coins areexample of a coin from each reign of an
in the early stages of a long-awaited majoremperor, king or queen); or commemoratives (in
upswing,' according to Barry Stuppler, publisher ofcoins that were or are struck to celebrate
Coin Connoisseur magazine, 'investors haveparticular events).
responded to recent stock market declines andI have already mentioned that you should always
geo-political strife by retreating to safe-havenbuy the best example you can afford. The
assets, including metals. Collectible coins shouldcommercial value of any coin depends on four
demand even higher premiums because they arefactors:
in such short supply.' His optimism is shared by1. Its exact design, legend, mintmark or date
Peter Temple of the Financial Times who recently2. Its exact state of preservation
wrote that: 'the higher levels of inflation now3. The demand for it in the market at any given
becoming apparent in western economies aretime
making collectibles such as stamps and coins4. The availability of similar coins in the market at
almost a no-brainer.'that time.
Nor must it be forgotten that the coin market isInterestingly, the appearance on the market of
both global and relatively liquid. A rare coin is easynewly-discovered examples of a coin or of a
to store and transport plus it can be sold quicklylong-held private collection seems to have the
and inexpensively anywhere in the world thankseffect of pushing prices up. Even though the
to a plethora of collectors, dealers, auctionsupply of available coins has been increased at a
houses, and the internet - something which cannotstroke, demand rises proportionately more. This
be said of many alternative investments; addedsituation has become more noticeable in recent
to which there is the pleasure of collectingyears, emphasising that quality coins are becoming
something of intrinsic interest. Numismatics offersmore difficult to find. The market has never
a fascinating link with the past and offers anexperienced a state of saturation on the disposal
excuse to study everything from history toof a quality collection - which is good news for
economics and from theology to metallurgy. Coinsinvestors.
are an art form, too. It is generally consideredThere are so many possible sources of reference
that the masterpieces of the coin world werefor anyone interested in investing in coins that it is
produced in the Greek colony of Sicily in the fifthhard to know where to start. If you want to
and fourth centuries BC. Take a silverknow more about the market in general try - the
decadrachm struck in Syracuse in around 400BC.only numismatic trading and investment company
The work of Euainetos, its obverse features alisted on the stock market in the UK. The biggest,
fast quadriga driven by a female charioteer. Theand longest established coin dealer in the world is
sense of speed is achieved by two of the horsesprobably Spink & Son which, as you would
slightly rearing and the hooves - all of which areexpect, has a superb website ( They also publish
above the ground - forming a jagged brokena fantastic range of reference books on the
pattern. A coin such as this is, frankly, a thing ofsubject.
great beauty as well as of great value.One final tip. Prices tend to be highest in country
What sort of coins should you invest in toof origin, which means if you search overseas
optimise your returns?you may find better deals - especially where the
There are two approaches you could take. Thepound is stronger than the local currency. Do,
first is to diversify - buying the best exampleshowever, be cautious about buying from
you can afford across a wide range of differentindividuals or over the internet. Better to pay
categories. Everything from Ancient Greekslightly more and know you are investing in the
Coinage to modern commemorative sets. Thegenuine article.