Advantages Of Collecting Coins And Stamps

by Marudhar Arts India's Leading Numismatic Auction House

Coin collecting is one of the oldest hobbies, once practiced mostly by kings and the wealthy. Coin collecting thus came to be called the “king of hobbies” and the “hobby of kings.”

For anyone who is younger, it is a good idea to collect silver specifically because it is an opportunity to capitalize on an expanding market. With the price of silver down, it is a good time to buy and for beginners to begin investing in the hobby of coin collecting.

Others collect based on nostalgia related to events surrounding the date of a coin; still, others choose to collect commemorative coins.

In addition to potential financial or investment benefits instinctive predilection the most common reasons people collect coins include:

• Knowledge and learning

• Relaxation and stress reduction

• Personal pleasure (including appreciation of beauty, and pride of ownership)

• Social interaction with fellow collectors and others (i.e. the sharing of pleasure and knowledge)

• Competitive challenge

• Recognition by fellow collectors and perhaps even non-collectors

• Altruism (since many great collections are ultimately donated to museums and learning institutions)

• The desire to control, possess and bring order to a small (or even a massive) part of the world

• Nostalgia and/or a connection to history

• Accumulation and diversification of wealth (which can ultimately provide a measure of security and freedom)

MOTIVATION FOR COIN COLLECTORS/TYPES OF COLLECTORS

The motivations for collecting are varied. Possibly the most common type of collector is the hobbyist, who amasses a collection purely for fun with no real expectation of profit. This is especially true of casual collectors and children who collect items on the basis of chance and personal interest.

Another frequent reason for purchasing coins is as an investment. As with stamps, precious metals or other commodities, coin prices are cyclical based on supply and demand. Prices drop for coins that are not in long-term demand, and increase along with a coin's perceived or intrinsic value. Investors buy with the expectation that the value of their purchase will increase over the long term.

Coin hoarders may be similar to investors in the sense that they accumulate coins for potential long-term profit. However, unlike investors, they typically do not take into account aesthetic considerations; rather they gather whatever quantity of coins they can and hold them. This is most common with coins whose metal value exceeds their spending value.

Speculators, be they amateurs or commercial buyers, generally purchase coins in bulk and often act with the expectation of short-term profit. They may wish to take advantage of a spike in demand for a particular coin.

A final type of collector is the inheritor, an accidental collector who acquires coins (a collection, hoard or investment) from another person as part of an inheritance. The inheritor may not necessarily have an interest in or know anything about numismatics at the time of the acquisition.

Marudhar Arts invite all Budding Numismatists/Aficionados to have a look at their exclusive collection including some rare and exotic coins of the erstwhile era by visiting their website http://www.MarudharArts.com

For more information on how to collect these opulent cisterns of our heritage, one can liaise with us on 080-65329800/ info@marudhararts.com