World Coin Collecting
Why collect World Coins? Their variety, beauty, scarcity, history and intrigue all beckon us to collect them. Coin collecting is one of the few hobbies where you can actually get your money back and even profit handsomely if you collect wisely. The sage advice from old time successful collectors and investors in coins is to "buy the book" before you buy the coin. Following this old axiom will save you from making many mistakes and channel you toward the coins with the best chance of showing serious price appreciation over the years. For world coins, there are several good places to turn for information on world coin collecting and world coin rarity and pricing. Two good references for arming one's self with the knowledge needed to make a proper start in the realm of World Coin collecting are available. The first is Collecting World Coins, a wonderful primer edited by Thomas Michael and George Cuhaj. Another solid World Coin choice would be the following reference from Krause and Mishler:
Also recommended is The World Encyclopedia of Coins and Coin Collecting by James MacKay which is a great reference which includes information on the world's greatest coins as well as a guide to building a spectacular collection.
The various versions of the Standard Catalogue of World Coins is a must for anyone who is more than a casual collector. These come in volumes that cover various date ranges and also are sometimes specific to certain countries or regions. You can start with the volume in the area that interests you most so that you can be well on your way to becoming a specialist in that area. As your interests expand, as those who have caught the bug will attest is very likely to happen, you can then add volumes to your numismatic library as you see fit. Click on the picture below for sourcing some of these volumes.
For those who are drawn to the fascinating world of Ancient Coins, the best place to start is with Ancient Coin Collecting by Wayne G. Sayles. For a great overview, the collector can begin with the first volume. Volumes II through V will address the topic more indepth. An excellent series. (Just search using the box near the bottom of this page to locate volume V)
And of course, to help you keep up to date with the latest in the World Coin market there is the monthly World Coin News:
One of the greatest things about World Coin collecting is that you can start off very modestly and not break the bank to get involved. In general, many U.S coins have gotten to some pretty lofty price levels. The strong collector base and mature market for U.S. coins has led to some spectacular appreciation over the last several years. Though some World Coins have appreciated nicely also, there are so many more niche opportunities to find value in the world coin market. Let's face it, few people can collect everything there is out there. In the U.S. market, you have most everything a collector could target for his or her collection contained in a small single 400 page volume know as the Red Book.
With all the U.S. collectors focusing on a group of coins contained in one 400 page book, it's no wonder prices are so high. Conversely, the Standard Catalogue of World Coins comes in so many configurations and there are thousands and thousands of pages covering the World Coin Market. The market is therefore somewhat thinner for World Coins and except for great well known rarities, the prices are still very reasonable to downright cheap in many areas. I would not be surprised to see World Collector Coins appreciate very nicely in many emerging and developing countries as their future growth and prosperity increases far faster than that of the U.S. If you do your reasearch on rarity and combine that with focusing on areas where the future collector demand is sure to strongly increase, then you can have it all: the enjoyment of collecting along with spectacular financial rewards!
Putting aside appreciation considerations, there are just so many inexpensive but highly collectible world coins available. One of the best sources is the small local U.S. coin shop. Since most of these shops specialize in U.S. coins, there are often bargains to be found. One of my favorite shops has a giant bargain bin where most of the foreign coins are dumped and sold for 10c apiece. Now, he's not throwing any gold coins in there but occasionally, I find some very nice silver pieces and some relatively scarce early world coins. Once in a while, some really good stuff ends up in these bargain bins when the dealer is not knowlegeable enough to recognize the value of the coin. That's where your superior education from studying the reference books should really pay off. Once you learn the basics and obtain some specialized knowlege, you will be surprised at how often you can pick up a coin for peanuts that could be worth several hundred dollars or more. Anyway, at a 10c bargain bin, how can you go wrong? So, check those local shops as there are exotic and exciting finds just waiting for you.
Ebay is also a great place to pick up some great coins. Sure, there is more competition but things are always falling through the cracks. I can personally attest to routinely picking up coins on Ebay (and sometimes other auction venues) that hammer way too cheaply. Then they can be added to the collection or if they don't really fit in, they can be flipped for a profit, providing more funds for other coins.
World Coin collecting is great for kids too! My daughter has her own collection and as she acquires a coin, it inevitably leads to conversations about the country, where it's located and maybe a little history. Then we go to the reference books to look it up. It's a wonderful way to spark an interest in a child in the areas of geography, history, politics, economics and sociology. Their eyes light up as they think about their coins being from exotic far away lands and from times long ago.
Halloween Coin Treats
Speaking of kids and collecting world coins (or any coins for that matter), let me tell you of this year's effort to spread the joy of collecting. I decided that in addition to some traditional candy treats, there would be some nice old coins given away to the children in the hopes of igniting the collecting flame in some of them and hopefully, bringing some new collectors into the hobby. I went to one of the local coin shops and told the owner that I needed some coins to give away for Halloween. But I didn't want just any coins. Knowing that first impressions are everything, I felt that the coins I would give away needed to be intriquing and attention getting if I was going to be able to set the hook into any of these kids. Therefore, I decided that the coins had to be old and they also had to be large. I figured that if a coin was at least 100 years old, that would definately qualify as being very old from the perspective of most young people. So, I wanted coins that were dated no later than 1907! Also, the coin had to be large so that it was "in your face" a bit and so that it wouldn't get lost in the sea of candy when the kids went home to inspect their Halloween treasures. It just so happens that this coin dealer had only days before brought in a large lot of foreign coins that had included a good sized group of old English Large Pennies. The perfect coin for my Halloween coin caper! Knowing what I was up to, the shop owner agreed to let me have 100 of these coins for the very reasonable price of 20 cents per coin. He even allowed me to pick through the group so that every coin I pulled was at least 100 years old. Most of these were nice decent coins with no damage, just good honest wear. I walked out of the store with my $20 bag containing 100 of these stately old English coppers and was excited to begin my mission.
When the kids came trick-or-treating, into their bags and pumpkins along with a handful of candy went 1 old Englsh Large Penny. I was very careful not to let them see the coin go in and to ensure that they did not, I delivered the goods with the back of my hand upward and the palm down. Only the kids that seemed to be at least 5 years old got the coins. Under that age, I felt was too young. By the end of the night, I had given away all but a few of the coins and had the best time delivering my little secret treats. Unfortunately, I have no way of knowing what happened as each child discovered the coin once they got home. But, I can tell you that my imagination was going wild as I pictured a youngster running to mom or dad with their coin in hand screaming with delight "daddy, look at the big old coin I got, what is it?" Of course, I'm hoping that the spark that ignited at that very moment would become the full flame of a brand new coin collector! I've got to believe that out of almost 100 coins given out that night there must have been at least one kid, or the kid's brother, sister or parent that became smitten with the old English Penny and therfore became infected with the collecting bug. Though I do hope it was more, if indeed, only one child was hooked and on their way to a lifetime of collecting enjoyment because of my efforts, then I would surely consider the night a rousing success!
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When $3 becomes $5!
Collecting world coins and money is a great way to learn about foreign exchange and the whole concept that each country has its own currency (monetary unit) and that it has a value relative to other nations' currencies. This is the story of how my own daughter learned about this through her collecting of foreign money. A couple of years ago, on one of our trips to the coin shop, she was looking through the foreign bargain bin in search of some nice material for her collection. She saw a nice crisp $5 Canada bill and thought it was different and pretty so she bought it for $3. When we got home we started going over her new acquisitions. As our discussion turned to the Canada $5, she explained to me that it was a real bargain because she was getting $5 for only $3! Then I informed her that the bill was only worth 5 Canadian Dollars and that there was a difference in value between a Canadian Dollar and a U.S. Dollar. She looked at me like I had two heads and 16 eyeballs! I explained that her Canada $5 would only buy about $3 here in the U.S. and to even be able to spend it, she would have to take it to the bank and exchange it for 3 U.S. Dollars. I told her that most stores in the U.S. , except some near the Canadian border, wouldn't accept payment in money from Canada or other countries. I tried to explain as simply as I could how the whole concept of foreign exchange worked. She seemed sort of confused and disappointed that her bargain was really no bargain at all. So, she tucked the $5 bill into her collection and that was that. Or, so I thought.
Just the other night, she needed $5 for the book fair at her school the next day. I had already given her a U.S. $5 bill earlier in the week but she couldn't find it. It was late night when she hit me with this information, and of course, I didn't have any cash other than a bunch of loose change. She disappears while I'm looking for the misplaced $5 and the next thing I know, she's back bringing me the Canadian $5 note again, sort of laughing and saying that this is the only $5 she can find. I said, "guess what?" "Your Canada $5 bill is now worth more than 5 of our dollars! Though they won't take it at the book fair, we can go to the bank and get them to exchange it and you'll get at least 5 U.S. Dollars for it now"! I asked her "what did you pay for this again?" She says, "$3". I said, "you see, you made a great buy on this afterall". She looked so pleased, it was as if she had been vindicated. Then I gave her a simple explanation as to why the Canada dollar had grown in value over the past couple of years and how the U.S. Dollar had lost alot of its value. She had some great questions and we had a very nice discussion as she was trying to let it all sink in. I believe she actually understood the basics this time around; as much as you would expect a 10 year old to grasp what for many is a very difficult subject. And though the Canadian $5 bill didn't solve our immediate problem of finding money for the book fair, it did give me two really great teachable moments with my daughter on an important economic subject that might not have come up otherwise. As for her future, right now, she wants to become a Veterinarian. But, if somehow that changes and she happens to become a superstar foreign exchange trader someday, I'm thinking I'll have to give credit to that one $5 Canadian bill she plucked from the dealer's bargain bin. This is just one more example of how it can be so educational and rewarding when collecting world coins (and in this case, world paper money).