Facing the Value of Numismatics

Wednesday, December 1, 1999

        What makes numismatics different from any other collectible? All collectibles are unique in their own right. Whether you collect pens, sportscards, art, silverware, cigarette lighters, clocks, cookie jars, knives, crystal, autographs, books, trains, wines or whatever your fancy, there is one major difference that sets coin (and currency) collecting apart from all others; coins have a face value. Most other collectibles begin their life as a retail item, with some exceptions such as autographs (I am sure you can think of others). Although nowadays, most autograph hounds are seeking signatures for potential profit and many sports and movie stars are charging for the privilege.

        What we find interesting about this difference is most collectors will spend hundreds, even thousands of dollars on old watches, trains, or pens and never question its relative value to the original cost. At the same time, almost every coin collector, especially those relatively new to the hobby, will tend to compare the cost of a coin to its face value. Or, in the case of gold or silver coins, to its intrinsic value, when in fact, these points have no actual bearing on the rarity. Coins are one of the most scrutinized collectibles in the world. How many other collectibles have as many variables as coins - 70 grades with numerous classifications such as plus, minus, premium quality, low-end, high-end, etc.; and with every detail, another value?

        One of the main reasons many novice collectors enjoy coin collecting is because of the reasonable amount of security in knowing that the perceived value of a particular coin can never go below its face or intrinsic value. Some Y2Kers are buying U.S. Gold & Silver coins because they possess both face and bullion value. The potential for profit could come on two fronts. Further, there is an added security when coins are certified by one of the leading grading services such as PCGS, NGC, ANACS, and ICG. Only a few other collectibles can offer this type of protection.

        This year has attracted a whole new generation of potential long-term collectors as a result of the publicity pertaining to the copper 1943 Lincoln Cent, the new 50 States Quarter Program, and of course the sale of the $4+ million 1804 Bust Dollar. Getting started can be as easy as going through your change or obtaining numismatic references; how one collects coins is entirely up to the individual.