It’s Greek to me

While I used the term foreign in the title of this report, I prefer to call coins minted in another country by their specific name or to refer to them as world coins or coins of the world. As a German coin dealer once reminded me, what I was calling foreign was like home cookin’ to him.

Examining coin from another country is like trying to speak a new language. Learning the proper pronunciation of denominations, monarchs names, mint names and the like, obliges you to know something of the language and the culture of these different lands. One of the first "serious" world coins I purchased was an Austrian taler that featured a 3/4 bust of Leopold the Hog Mouth. I'll admit that the ruler's nickname helped influence my purchase. The effigy on the coin looked a lot like the guy who sold it to me.

Legend has it that one famous numismatist, when thoroughly annoyed, would curse using the names of Mexican mints instead of popular profanity. Zacatecas! You worthless son of a Chihuahua from Tlalpujahua!

Have you noticed? I really enjoy world coins. Like most Americans, I started out collecting domestic coinage. When I became a dealer I bought and sold United States coins. Seeming to need more of a challenge, I switched exclusively to world coins. Now I'm back selling United States issues. While I loved the coins, and enjoyed the people who collected them, I couldn't seem to make a decent living dealing exclusively in the world issues. The real truth is I just wasn't good enough at it.

Some of my most memorable experiences occurred when I was dealing with world coins. Many of the nicest people I’ve met in the coin business are world coin dealers. Some of the smartest people I know are world coin dealers. It's really too bad these attributes don't always mate with one other. Sit me down in front of a box of unattributed world coins and immediately you'll see a smile on my face. I like to be puzzled. I like to be surprised. From time to time I enjoy letting out the clutch and putting the mind in gear. If you have not investigated the coins of other countries then you are missing much that numismatics has to offer. There is nothing quite like holding a three hundred year old taler in your hand. You need only look in my driveway to see I'm as much for buying American as the next guy, but for collectors skipping past all the A to T countries to get to the U is like throwing away the hot dog and eating just the bun.

IT'S A BIG BALL PARK.

I know of very few coin collectors in the United States that began the hobby by starting a collection of world coins.

Most of us cut our numismatic teeth on domestic coins and then after we became bored, or felt we were priced out of the market, we began to look at the goodies other countries have to offer. Back in the old days there were very few books, at least ones available to me, that offered much information about world coins. Pieces were often listed only by type and the values given were not very informative. The world coins I had in my collection were oddities, and since they couldn't be used to fill holes in an album, they weren't all that much fun to collect. It was aggravating to own something I couldn't properly attribute or evaluate. Collecting world coins seemed to require too much effort and led nowhere.

Recently I asked ten customers, all of whom have only ever collected United States issues, why they have never tried world coins. Three of them suggested they found the United States series to be enough of a challenge and were thoroughly enjoying what they were doing. The other seven more or less said they thought it would be interesting to have a few world coins but had never figured out a way to begin a meaningful collection.

SOME SIMPLE AND ENJOYABLE COLLECTIONS.

I know of one person who began collecting coins to earn a Boy Scout merit badge. One of the requirements was to assemble a birth year set. This innovative youngster took the project a step further and also included some world coins that were minted in this same year. The last time I spoke with him what had been a childhood project had turned into a great collection of more than 200 different coins! Next time you're at a coin show take a few minutes to look around in the junk boxes of world coins. How many different coins can you find that were minted the year you were born? Wouldn't at least a few of them be fun to have?

Another collector, who is also a dealer in United States coins, looks remarkably like Louis Philippe I of France. His wife, noting this resemblance, bought him a crown size coin of this ruler for his birthday. Now he collects the pieces by date and mintmark!

A boy who was very fond of animals was given a mint set of Irish coins, each of which has as the central devise a familiar animal. This little collection of inexpensive pieces provided the inspiration to expand the set and his" zoo " now contains more than 100 different, animal related, coins.

A history professor has found that using coins in a "show and tell " program helps his students better understand and remember the lessons. As of last count, more than a dozen of his previous students are now avid coin collectors.

A former Marine who is very much interested in military history now collects coins and paper money that was issued by combatants in famous wars. His impressive collection includes pieces minted centuries before the birth of Christ as well as coins less than a decade old.

After a tradesman had done some particularly nice work around my house I rewarded him not only with payment for his services but also with a coin. The piece was a well circulated, and thus not especially valuable, example of the "Oak Tree" five marks of Germany. The fellow was delighted with the coin and thanked me many times. What better coin to give a person who runs a nursery and landscaping business? For about ten years he has been collecting coins, which have plants as part of the design. Most of the coins in his set are inexpensive but they make an impressive display. Except for a few issues, this collector has been able to identify the type of plant or plants shown on each coin and he has each coin labeled with this information in the storage album.

One unorthodox collector has a splendid set of coins that were made in the metal nickel. I don't know the reason why he settled on making this type of collection, but I mention it to show that there are hundreds of different reasons for starting a world coin collection and none of them need be based on anything more than the individual collector's preference or whim.

I caution new collector's of United States coins to avoid making an early commitment to one type of coin or series. I offer the same advice to someone about to collect world coins. From a strictly commercial standpoint, each coin, regardless of its country of origin, will stand on its own merit. If you buy better than the average encountered quality and avoid making impulsive, ill informed, purchases then you should have no trouble disposing of certain coins and taking your collection in a different direction. Collecting world coins can be like picking delicious morsels of candy from a huge box offering an endless variety of treats and different tastes. Don't expect to like them all.

I became seriously interested in world coins because it seemed foolish for anyone who called themselves a coin dealer to not know something about every branch of numismatics. I would recommend devoting just a half hour of your time paging through a world coin catalog you can borrow at the library or from a friend at the coin club. The next time you attend a coin show spend a few minutes reviewing the world coins offered for sale. Since I no longer sell world coins this advice can hardly be considered a commercial. I should warn you that the world coin collecting bug bites deep and its venom might stay in your blood stream forever. Don't be too concerned; it might also fly right over your head.

THERE'S MORE TO COLLECTING WORLD COINS THAN LEARNING THAT A GIRSH IS NOT A BRAND OF WINDOW COVERING.

Collecting world coins is quite different from collecting United States coins. I imagine some folks will take exception to the comments that follow. Any time I make general statements I'm prepared for criticism. Sometimes it's totally justified.

World coins are often not as easily resold, in this country, as United States coins. This lack of liquidity can come as a shock to collectors who are used to the way United States issues are traded. In this country there are fewer dealers in world coins than those involved with the United States series. The person who may be the best buyer of French coins may not be interested in South American issues. The dealer that specializes in more expensive pieces may not be a good buyer of inexpensive coins. The enormous number of different world coins makes it difficult for any one dealer to buy everything. World coin dealers tend to be more selective when making purchases because they have far more to select from and they must be very attentive when it comes to inventory control.

Aren't coins always worth more in the country of origin? Did you ever try to do business through the mail with a coin dealer in Albania? While it is possible that the best buyer for German coins is in downtown Berlin, doing business out of the country can be cumbersome. The language barrier, unexpected taxes, customs problems, being unable to obtain adequate insurance for your shipments, and the time it takes to complete a transaction can be a good reason to forget about potentially higher prices and do business at home.

Dealer profit margins in the world coin market are generally higher than for United States coins. I'm sure this comment will result in some howls of protest! A lack of liquidity affects dealers as well as collectors. While the dealer in United States coins may be able to turn inventory rapidly, the world coin dealer often expects coins to stay in stock somewhat longer. If a coin must remain in inventory for months before it is sold then the dealer would likely expect to make a greater profit.

Most of the collectors of world coins I have met seem to care less about investment than collecting for the fun of it. I have found world coin collectors seem to stay with the hobby longer and are less annoyed by minor setbacks.

While the world coin market is dominated by collectors, it is not immune to promotion and manipulation. For a number of years modern limited edition sets of coins, often sold at huge premiums over the intrinsic value, have been touted as investments. Many buyers of these products found that once the initial promotion was over nobody cared about the coins. Lately, the telemarketers and certain others have been busy selling rather common world coins that have been given high mint state grades by the various grading services. This type of promotion has been tried before and this time it is just as likely to end with many investor's bubbles being burst.

A more legitimate boom in world coin markets has occurred when large numbers of home country residents have "discovered " coin collecting and their nation's coinage. I would suggest that thirty years ago the number of collectors of Korean coins, who 1ived in Korea was quite small. During the past 15 years or so, many of the best Korean coins have been shipped back home, or to surrounding nations where collectors, with lots of discretionary income, are waiting to buy. Would it be wise to speculate that the coinage of some yet to emerge nation will suddenly be worth a fortune when all the natives discover coin collecting? Do as you please, but I would suggest that most of the discovering has already been done.

THIRD PARTY GRADING FOR THE THIRD WORLD?

Most of the world coin dealers I have talked with seem to have, at best, a lukewarm attitude toward formal third party grading. I'm sure to infuriate some and confuse others by saying that the technical grade of many world coins is no more important than subjective factors and considerations such as strike, lustre, and coloration. Third party grading has tended to diminish the importance of those factors, which are not strictly relevant to the grade. If the grade is not the primary concern then why bother sending the coin to a grading service?

The market for United States coins has evolved, which may not be the proper word to use, to the point where slight differences in condition can result in huge differences in value, or at least price. While pinpoint grading may likewise occur in the world coin market, the differences in value among mint state coins in slightly different condition is often quite small. If the value doesn't change much if a coin is a MS-60 or a MS-63 then why bother sending it to a grading service? Grading standards vary somewhat from country to country .As of this writing there seems to be no move to adopt a single world wide grading standard. If my nice collection of French coins is going to end up with a dealer in Paris then there is probably little reason to send them to a grading service in the United States.

Most of the grading services I know of now accept world coins for grading. The collector of United States coins who has nothing but third party graded coins may well wish to maintain the continuity by adding world coins that have also been third party graded. I would offer two cautions in this regard. Don't pay big premiums for world coins that have been graded by a third party and don't put much faith in the grading service's population reports. You may own the highest-grade example of a coin that has been graded by one of the services because it is the only one submitted! With the possible exception of some Canadian issues, I would suggest that far too few world coins have been submitted to the grading services to have created really meaningful population figures.

I know of several world coin dealers who have experimented by sending portions of their inventory to one or more grading service but none who have begun exclusively selling third party graded coins. This doesn’t mean there are none, I’m just not aware of them. In conversations with several dealers I was told that the cost and time involved in submitting coins has not resulted in a marked increase in sales volume nor is a third party graded coin often worth more than an uncertified piece. I’ve never met a world coin dealer who was successful and yet unresponsive to the needs of their customers.

An important, often underrated, service the grading services provide is authentication. Authentication is mandatory for numerous world coins. This would include the scarce and rare issues and many of the earlier gold coins. Using the grading services to confirm that a coin is genuine is always a good policy.

In the context of the world coin market, third party grading seems to be most popular with those buyers and sellers who are most interested in coins as investments.

CAN THE INVESTOR MAKE MONEY IN THE WORLD COIN MARKET?

The scope of the world coin market is so broad that assembling a contrary list of miserable performers can easily negate citing examples of coins that have performed well for the investor. The collector-investor who has purchased quality examples of coins having a proven track record of collector demand, has generally seen the value of their holdings increase. Some of these coins have performed remarkably well.

As mentioned previously, the performance of many issues can be tied to the economic circumstances of the home country. For example, all English and British coins, which include centuries of production, are avidly collected, both a home and abroad, but high taxes and other government hindrances has reduced the number of new collectors. The same can be said for the Scandinavian countries. Many people would love to collect their national coinage but simply can’t afford to do so. In some countries buyers of rare coins may be obliged to pay stiff taxes, such as 20 % or more of the selling price. The national sales tax in Canada has eliminated much of the regular international business that used to occur and tended to drive activity under ground so more coin business is done via untraceable cash transactions.

Rare coins, as well as bullion related items are quite popular, among those who can afford them, in countries that are experiencing high inflation rates or political unrest.

The breakup of the Soviet Union and the sudden freedom of East Germany created an unprecedented demand for modem East German commemorative coins, which had, for the most part, been gathering dust in dealer's stock boxes.

Some collectors with an inclination towards investment may be intrigued by the speculative possibilities to be found in betting on the economic fortunes of certain countries or the outcome of their next election, but my advice would be to only buy those world coins that have a proven record of collector interest in the country where you reside.

WHICH WORLD COINS ARE THE BEST INVESTMENTS?

Such a question might be easy to ask but is certainly impossible to answer. The dealer who specializes in European coins is likely to point you toward that coinage. The seller of ancient coins can mention some dandy opportunities. The coinage of Central and South America would be a great place to look for investment possibilities.

Rather than waste time trying to look for which coins offer the best values, it might be more productive to prune away those areas of the market that offer the least potential?

Based on my experience, it is best to avoid the majority of modem issue coins, especially those that are sold at high premiums over the intrinsic value. These "made for collectors only" coins are often marketed as limited editions, the limit often being the number of sets that can be sold during the original promotion. Historically, the majority of firms who have marketed this "material", including some very famous mints, have done a poor job of developing any sort of aftermarket for the coins. It is much easier, and infinitely more profitable, to move along to the next new promotion and forget about the previous products, and the people that bought them.

Collectors who have taken a liking to the modern collector sets have often found by waiting a year or two after a set has been issued they can buy the coins at much more reasonable price, that being a fraction of the original issue price or a small amount over the bullion value of the metal the coins contain. The collector who follows this plan does run the risk of missing out on a set that actually appreciates in value beyond the original issue price, but at least in recent years, such as risk has been isolated and slight.

Another area the collector-investor might well avoid I term "cheap coins". When collecting world coins it is very easy to accumulate lots of stuff. Impulsive purchases made for just $10 or $20 each may seem trivial yet the cumulative value of these meaningless acquisitions grows in a hurry and can clutter even the biggest bank boxes. Please don't misunderstand; I think inexpensive coins are great fun to collect, if they are truly part of a collection. I once searched for a certain coin for a collector for more than three years. When I finally found it the purchase price was less than $20!

Anyone who is buying world coins as an investment should always make significant purchases. The majority of popularly traded coins that might be considered worthwhile investments are generally priced at several hundred dollars or more. Perhaps the best way to determine which coins to buy as an investment is to consult a variety of dealers. What would they like to buy? What have they put away? Most of the world coin dealers I know are quite receptive to sharing their knowledge and opinions with others.

AVOID RIP VAN WINKLES.

Are there coins of most countries that are currently undervalued? The answer has got to be yes, but do you have the knowledge to find them? Finding the coins may be simple compared to finding the next buyer who shares your opinion.

Because there are so many different world coins the collector base seldom shares a single focus. Active buyers of a particular series may be quite small. I once obtained a gold coin that was unlisted in most of the catalogs and listed as "reported not confirmed " in another. I had paid a big premium for the piece because it was an obvious rarity. I showed the coin to a number of dealers. All of them admitted they had never seen a coin of this date and mint before but none of them had the slightest inclination to offer me a profit. At a major show I had the good fortune to meet a renowned collector of these coins. I proudly showed them my coin. I was delighted when they said they had never encountered a similar piece before. When I quoted my asking price they quickly passed and didn't even bother to make a counter offer. How could a collector who specialized in this series ignore the opportunity of a lifetime? When I questioned their wisdom they explained that it just so happened that many of the other issues in the series, even those that were mentioned in the catalogs, and listed as apparently common, were equally elusive. This collector needed some seventy-five more coins to complete the set. At my price, which happened to be three times the value of a common date, there was simply no interest. So much for rarity when interested collectors are even rarer.

Before selling an especially nice German coin to another dealer I offered it to a well-known collector, who passed. The dealer I sold the piece to offered it to the same collector. That dealer then resold it to another dealer who in turn offered it to the very same collector! After receiving such attention the collector might assume he was the only buyer of such coins left on the planet. He might be right!

BIG IS BETTER.

Large size coins, that being silver dollar size pieces, are among the most popular world coins. It may seem unscientific and even crude to make the general statement that big coins make better investments than small ones but it is true. Gold coins are more likely to reward the investor than are pieces struck in a non- precious metal. Coins from popular countries are a better bet than issues from obscure lands. Coins, with beautiful designs, well recognized personalities, and having easily understood legends are more popular than coins that are covered with "squiggles". I guess simple logic and common sense tends to rule the marketplace.

ENOUGH ABOUT MAKING A BUCK.

During my many years in the coin business I have bought and sold countless millions of dollars worth of rare coins. The only pieces I have truthfully ever regretted selling were world coins. I could probably list a dozen or so coins I vividly remember. Collectors of world coins, at least most of those I have met, seem to value coins for reasons that surpass monetary considerations. I once bought a nice South American coin from a dealer who, an hour later, pleaded with me to sell it back to him because he "missed" owning the piece! I have had far fewer United States coins that solicit the same sort of emotion.

I know of another world coin collector that has always been fascinated with completing date sets. When he called me to buy his collection I was amazed at the tremendous number of pieces, and the number of sets he had. Prior to my arrival he had double-checked his extensive inventory lists against the coins. Depending on the country, we agree upon a price I would pay basis a percentage of the catalog value. A transaction that would have taken days to complete, had I needed to view each coin, and make an offer, was finished in less than two hours. As he helped me load the many albums into my car it was obvious he was having second thoughts about selling the collection that had kept him busy for more than thirty years. If this collector wasn’t moving in with his son, who lived in a very small house, I'm sure he would have backed out of the deal. It was a remarkable collection and yet this numismatist told me he had never paid more than $10 for a single coin!

DON'T ORDER THE SEVEN-COURSE MEAL, SAMPLE THE BUFFET.

Have I been sounding like a numismatic missionary who's trying to convince you to join the flock? If I've been a bit pushy with my message it's because I've seen many collectors who have wandered away from numismatics but come back with new interest and enthusiasm once they discovered world coins.

Those who suggest ours is a dying hobby or one that only the wealthy can afford seem to forget that anyone who has enough money to buy a couple of tickets to a movie and dinner at a fast food restaurant has the income needed to collect world coins.

It is entirely possible to continue to collect United States coins and to begin a collection of world issues as a side project. World commemoratives would make an interesting addition to a U .S. commemorative set. I know of one collector who, liking the size of the denomination, collects half dollar size coins of the world. Another person who has always liked early U.S. issues has purchased numerous pieces that were minted in other lands during the year 1793. There is no good reason why the collector must collect either world coins or United States issues. Having a world coin collection that numbers less than a dozen pieces can be great fun!

GETTING STARTED.

I once spoke with a customer that was interested in buying some gold bullion. I showed them the various products we had available and they were quite surprised to learn that British gold coins that were a hundred years old or more could be had for a very small premium over the intrinsic value of the coin. They purchased one each of the differently dated pieces I had on hand and decided to have me save other dates for them as they became available. There are numerous world gold coins that serve double duty as both interesting collectibles as well as a bullion related investment. Moving away from the strictly bullion related issues, there are literally hundreds of different pieces that can be obtained for premiums less than twice the value of the gold they contain. There are numerous dealers who maintain a stock of world gold coins and I have never encountered any difficulty in selling any of the bullion related pieces at fair prices. For the collector who wishes to sample the world coin market buying a few gold pieces may be an excellent, safe, place to start.

CUTTING A COLLECTION DOWN TO SIZE.

The coinage of many countries exceeds that of the United States in variety. Deciding how to limit a collection can be difficult. Building a type set, that is obtaining one example of each major type, can still obligate the collector to obtain hundreds of different pieces. Collecting the coins of a single monarch or from a certain period of time may reduce the number of coins needed but may prove too restrictive. I have found that limiting a collection to a certain denomination to be one of the most rewarding ways to keep a collection under control. For many years collectors of world coins have avidly acquired "crowns" those being dollar size or larger pieces, often which were struck in silver. Because of the popularity of collecting in this way, many of the dollar size coins are quite expensive when compared to the smaller "minor" coinage of a country.

The collector who wishes to take a different and somewhat more interesting path that may involve less competition from other collectors, might decide to collect copper and bronze coins or the like. I know of one collector who has acquired a beautiful set of unusual commemorative coins all of which were struck on quarter size or smaller denomination coins. Certainly a thinking man's collection.

THIS COULD GO ON FOREVER!

Mentioning all the different ways to collect world coins would fill the pages of a thick book. Investigating the coinage of even one country would result in many pages of text. Perhaps we can develop some general guidelines that might be appropriate regardless of which specific types of coins you decide to collect?

1. Start small. I know of one collector who began a set of English coins by attempting to acquire one piece from each century since the Norman invasion and the reign of William I in 1066. Such a collection would be both small and yet interesting. The coins in the set could illustrate a great variety of different types and the coins selected could correspond to the collector's budget. Once the initial small set was completed the collector could then add other pieces or move on to a completely different project.

2. Do your homework before you start buying. Nothing can be more frustrating than beginning a collection that is impossible to finish. I once spoke with a young collector who had decided to collect coins from countries that had changed their name. For example, coins from Cambodia and Kampuchea are from the same place. I asked him how many coins he planned to have in his collection. He hadn't given that matter any thought. Such a collection was a good idea, but like all ideas, it would end up being nothing but an idle thought if a plan to implement it was not devised and some restrictions put in place.

3. Observe what other collectors are doing and take the time to talk with dealers. While collectors can often provide the inspiration you need to start a nice collection, they can also help you avoid some mistakes. Discussing your collecting plans with an experienced dealer can be very productive. They have worked with hundreds of different collectors. They understand the coins and they can often point you in the right direction. Some of the finest coin collections ever assembled were built with the guidance of an experienced world coin dealer. I have found the vast majority of world coin dealers to be ready and willing to discuss coins and how best to collect them.

Most dealers understand that most collectors who stop collecting world coins do so because they lack purpose and direction rather than enthusiasm. It is the dealer’s best interest to assist you in assembling a worthwhile and fun to own collection. If you take the time to speak with them, by phone or in person, I think you will find most dealers willing to answer your questions or provide advise that might take you months, if not years, to learn by trial and error.

A LOOK AT MY WORLD COIN COLLECTION.

My problem is I like too many different types of world coins. I can't seem to focus on just one collection. Following my own advise to keep things small, I decided the only limit I would put on my collection would be the number of pieces it contains. I set the limit at 100 coins. I promised myself that once this limit was reached I would force myself to sell something before adding another piece. Having only 100 coins made my collection quite easy to store and to keep track of. As the years passed, the quality of the collection continued to improve. Having to dispose of something to add another coin helped me to avoid making impulsive purchases. Having size as the only restriction enabled me to continue to explore every nook and cranny of world numismatics. My little box of coins contains some ancient coins as well as some fairly modern issues. Each of the pieces is of outstanding quality for the type and while few of the pieces are in any way related to one another I doubt that any world coin collector could examine the contents without being quite impressed. I know my collection appeals to other dealers because several of them have expressed an interest in buying the entire group should I ever decide to sell.

The way I collect world coins may not work well for you, but if you can't seem to concentrate on one specific area then limiting the number of coins may be a simple and productive way keep things under control.

EVALUATING WORLD COINS.

For the collector of most United States coins there is lots of current pricing information available. Thanks to third party grading, and other factors, the value of many United States coins has become quite standardized. Coins tend to trade in narrow ranges and both buyers and sellers can easily gain information about current coin values.

There is certainly no lack of world coin pricing information however the pricing guides tend to be just that, guides, rather than indications of recent transactions.

It is entirely possible that transactions involving certain world coins may not occur for several years. The values of certain coins may be much higher in one specific market. When the opportunity to acquire an especially elusive coin presents itself it may be offered at a price that has little to do with the values as listed in the guidebooks.

I find this lack of standardization in pricing to be good. Such a situation tends to reward the knowledgeable numismatist. The specialized collector who has been seeking certain issues for a long time may know these coins are really worth far more than the pricing guides indicate. In other cases the combination of supply and demand may suggest that some coins are overpriced in the guides.

Collecting world coins is a never ending treasure hunt. It's much more fun to participate when it's entirely possible for one hunter to walk right past the coin you've been trying to find for years.

I once bought a small group of Japanese coins each of which was in superb condition. At the time the pricing guides indicated the group was worth about $2000. It was my feeling the coins could be sold for more if I were to contact a buyer who would export them. I ended up selling the coins for more than double the catalog value to another dealer. He was glad to get them. I later learned he sold the little handful of nice pieces to a collector for more than $10,000. Such incidents are not uncommon in the world coin market. It is also not usual for some coins to sell for as little as 10% of the catalog price!

I would suggest the lack of concrete pricing information has turned a number of collectors away from the world coin market. It's easy, as a novice, to pay too much for coins, or to lack confidence in what you are doing and be afraid to participate at all. The solution to this problem is to only buy coins you will really enjoy owning. I doubt that anyone would suggest you get married after the first date. World coins offer many exotic temptations. Many world coin collectors carefully study coin values and are constantly comparing actual dealer offerings with pricing information. What a dealer is willing to sell something for certainly has more credibility than a listing in a pricing guide. While the collector of United States coins can rapidly reacquaint themselves with the market after an absence, most world coin collectors I know feel continual research and study is a very important way of keeping in touch.

When purchasing United States coins it is often possible to directly compare the prices two dealers may be asking for a coin of the same grade. With many world coins a piece may be one of a kind in a dealer's stock and that dealer may be the only one you know who has such a piece available. Most of the world coin dealers I have known are very smart people. They thoroughly understand what it is they are selling and are very receptive to needs and interests of their customers. The specialist dealer in any series fully expects, and often hopes, that collectors who have made purchases will think of this dealer when it comes time to sell. Because there are often fewer of them, the world coin dealer tends to take good care of their customers. It would be most embarrassing to sell a coin to a collector for $100 and then, assuming market conditions are similar, offer just $10 when the customer wishes to sell.

I would strongly suggest that you continually test all dealers, regardless of which types of coins they sell, but I have found fewer "hit and run" artists among world coin dealers than those who sell United States coins.

As mentioned previously, factors other than the technical grade can have a profound effect on the value of certain coins. I once looked on as a dealer paid twenty times the current catalog value for a certain South American Peso that was only in Very Fine condition. What made this coin extraordinary was that it was very well struck and most, if not all, of the previously known examples of the piece was poorly struck. With world coins experience and knowledge can often provide you with information that can never be found in the pages of any pricing guide. I think most veteran collectors and dealers would agree this is just the way it should be and a major reason why world coins are so much fun to collect.

CROSSWORD PUZZLES AND WORLD COINS.

It takes considerably more effort to collect world coins than most United States coins. Some people welcome the challenge world coins offer much like trying to solve a complicated puzzle. Others with less patience find less challenging things to do. Some collectors are baffled by the diversity world coins have to offer. Others are delighted with the challenge collecting world coins can present.

ON TO THE CANDY STORE.

Reference books can serve as an inspiration and can make deciding which coins to collect a much easier task. One can hardly read past the first few pages of John Anthony's book, Collecting Greek Coins without become enthused and inspired enough to at least sample this coinage. Reading A Beginner's Guide to Coin Collecting in the Seaby volume titled Coins of England and the United Kingdom is sure to stir the interest of even the most die-hard collector of United States coins. Most of the world coin dealers I know maintain working libraries that may have cost them many thousands of dollars to assemble and they may spend hundreds of dollars each year adding new "paper tools" to their necessary box of equipment. While assembling a fine numismatic library is always a worthwhile collection in itself, books are quite expensive and I couldn't encourage the person who has a casual interest in world coins to buy hundreds of dollars worth of books to experiment with this branch of the hobby. What I would strongly suggest is that you obtain a copy of the Standard Catalog of World Coins published by Krause Publications. In my opinion no book on the subject of world coins has done more to promote the hobby and educate collectors than this thick reference, which was first published more than twenty years ago. The edition that I now have on my desk is literally the size of a telephone book and contains nearly two thousand pages. Between its covers is a wealth of information that would cost many times the price of this volume were you to try to obtain it elsewhere. While this book is not inexpensive it is certainly well worth the price. It also contains an excellent and detailed section on United States coins so even if you decide not to pursue world coins you will still have obtained a valuable reference. Many dealers offer this standard reference for sale. A new edition is published each year. You may be able to obtain a slightly out-of-date copy at a bargain price. Don't put off buying a copy of this catalog. If you become even moderately interested in world coins you will want to have this book so why not buy it now? I would like to mention that I'm not a salesman for Krause Publications and stand to gain nothing by mentioning their book in this report.

I CAN'T HELP MYSELF!

I hope I don't bore you by continuing to offer suggestions on how to start a collection of world coins? Because I've helped dozens of collectors get started in this field I can't resist mentioning some of the ways this was done. To a schoolteacher I suggested that they might try to build a set of twenty-six silver dollar size coins one for each letter of the alphabet. Does this sound like a collection for children? Can you guess which letter was the toughest to find? Is the set even possible to build?

To another collector who's ancestors came from Germany I suggested obtaining a coin from each of the mints that produced German coins in modem times. Just eleven easy to find coins. Right?

THE GIFTED NUMISMATIST.

Regardless of which type of coins you collect you will enjoy the hobby more if you train yourself to look beyond the surface of the coin, so to speak, to discover all each piece has to offer. In some cases to deal, even superficially, with some world coins you must learn handy new skills. It's generally impossible to determine the date of Japanese or Chinese coins unless you learn to recognize which symbols represent the numbers zero through nine. Even though most German or French coins have the denomination stamped on them in Arabic numerals you won't collect either for long before you can count in French or German. While I haven't found much practical use for the knowledge, I don't feel as though I've cluttered my brain by learning that Franz Grillparzer was a famous Austrian and that the Quetzal is not only the national bird of Guatemala but is honored by having the modern coins named after them.

THE ELITE NUMISMATIST

The collector of world coins is usually obliged to learn more about coins to understand them. These numismatists spend more time examining the coins in their collection and can accumulate a huge amount of information often without thinking much about it. As a young collector I acquired a small assortment of world coins from a neighbor. In less than half an hour I was able, using the single reference book I had on hand, to identify all but one of the pieces. None of the coin books in the local library helped me to discover the origin of the mystery coin. I took the piece to a local coin show but none of the dealers or collectors in attendance knew where it was from.

Six months later, at a regional coin convention, I showed the coin to a world coin dealer who, at a glance, told me the coin was a rather common issue from the German duchy of Mecklenburg-Schwerin. What a smart guy! How did he know that? Indirectly, a little copper coin, worth less than fifty cents taught me there was far more to coin collecting than filling blue folders with "pennies" found in circulation. I felt an urgent need to know more about coins. For me, numismatics suddenly contained a literal world full of interesting mysteries I was determined to solve. A similar experience may not have the same effect on you, but unless you at least sample what collecting world coins has to offer you will never know.

THE FINANCIALLY EMBARRASSED NUMISMATIST.

A common complaint often voiced by less resourceful numismatists is that the value of coins has risen to a point where only rich people can afford to collect them. Let's suppose you were very hungry but only had $5 to spend on a meal. Would you go to a fancy restaurant and have a slice of bread and a glass of water or would you opt for a couple of burgers at the local diner? Have you found it beyond your means to collect truly scarce and rare coins in choice condition? If this is the case then you've obviously not investigated world coins, and are probably going numismatically hungry.

Often the novice world coin collector makes the mistake of comparing the coins of another country to our domestic issues. "Wow! If this was a U.S. coin it would be worth a thousand dollars, but I only paid $75 for it! A choice uncirculated example of a British shilling minted in 1818 might be currently available for less than $300. A United States quarter, which is roughly the size of the shilling, minted in the same year might not be had for ten times as much! In terms of rarity in condition and popularity the quarter wins the contest but it cannot be denied that the shilling in our example is a beautifully made and interesting coin that is scarce and desirable in high grade. It is a coin well worth owning.

THE FRUSTRATED NUMISMATIST.

The collector of world coins instead of being priced out of the market is more likely to become disenchanted because even though they have the money in hand they can't find the coins they wish to buy. While I strongly suggest that much of the fun of coin collecting is in the hunt, I will admit that every now and then it's nice to bag a trophy. As with collectors of United States coins, the world coin collector should investigate the possibility of completing a collection before beginning it. Deciding to build a set of British gold sovereigns of the Victoria Young Head design in MS- 63 or better condition is doomed at the start because some of the dates are, at least to the best of my knowledge, unobtainable in uncirculated condition. Building the same set in high circulated grade is much more practical but still quite a challenge. Before beginning any new collection, even one that may seem rather simple, I would suggest you discuss the project with one or more world coin dealers. They may be able to offer some valuable advise on which grades of coins to select as well as suggesting some sources for the coins.

THE EASY TO PLEASE NUMISMATIST.

I have found it is just as likely for a new collector of world coins to set standards that are actually too low. As with United States coins, an analysis of any world coin can be made to determine which available grade offers the most practical combination of quality and price. The wise buyer, keeping financial considerations in mind, should always strive to obtain coins of a higher grade than is usually encountered. For example, buying a British five-shilling piece minted in 1887 in Very Fine condition would not result in a positive addition to most collections of British coins as this piece is usually obtainable in at least AU or uncirculated condition. Since the majority of world coin collectors will change the direction and content of their collections and wish to sell some pieces it is wise to have bought coins potential buyers will consider desirable. Again consultation with dealers can provide valuable information and help you to avoid making purchases you may regret in the future.

THE INQUISITIVE COLLECTOR

One of the great pleasures of collecting world coins is that the deeper you dig the more you will find. The excavation can last a lifetime. What is equally nice is your exploration need not be finely detailed and you are free to skip around from one interesting sight to another. As long as you buy coins of nice quality from popularly collected countries and do a little shopping around before you buy you should have no problem selling coins that are no longer of interest and moving on in another direction.

THERE IS NO BEST COLLECTION. SOME CAN BE MORE FUN THAN OTHERS.

Prior to publishing this report I asked several collectors of world coins to critically review what I’ve said. Both of them felt I should also offer some specific ways to begin collections. They agreed that it's fun to do your own thing but it also doesn't hurt to have someone in the know encourage you down a safe path.

GO FOR THE GOLD!

I often suggest collecting gold coins to those who wish to get involved with world coins. A collection of gold coins can include issues from many different countries yet dozens of different and interesting pieces can be purchased from a small premium above the value of the metal they contain. Often gold coins were minted in sizes that contain a quarter ounce of gold or less and thus at the current value of gold some very nice examples can be had for $100 or less. I’ve found collecting gold coins tends to confer status to the collector and the collector tends to think highly of each acquisition. Even in small quantities gold is a precious commodity. Perhaps most importantly the person who begins enjoying world coins by collecting the gold ones is usually in the best position to dispose of what they have should they lose interest. Many dealers may trade gold coins on very thin profit margins. It should be remembered that in general the smaller the gold coin the higher the premium will be over the melt value of the coin.

In modern times many gold coins have been produced around the world that may be very different in design and denomination but are roughly equivalent to the issues of other countries in the amount of gold they contain. For example, The British sovereign contains about .235 ounces of pure gold. The German twenty mark has about .23 ounces of gold in it. The French twenty-franc has about .19 and the United States five-dollar piece contains about .24 of an ounce. Building a type set of world gold coins each of which contain about a quarter ounce of gold can result in a very interesting and diverse collection.

My personal preference is to collect small size world gold pieces that are roughly equivalent in weight to our one dollar gold piece or smaller. There is a good assortment of these pieces available from different corners of the globe. I like these issues because they tend to be less popular among collectors, are often more likely to be found in nice condition than the larger and heavier coins, and based on my experience, many are far scarcer than the pricing guides would tend to indicate. Perhaps just as importantly, because these coins contain a small amount of gold they are often quite affordable, although the premium paid over the melt value is expectedly higher.

Many gold coins can be collected as sets or partial sets and the observant collector may be able to obtain some of the scarce issues at the same price as the commonest dates. While United States gold coins have been subjected to exhaustive research by many notable numismatists, many series of world gold coins represent a nearly unexplored area for the resourceful numismatist. There are new die varieties to be found. New overdates to be discovered and new rarity ratings to be established. It has been my experience that often the numismatic researcher has the field full of potential discoveries to themselves and truly significant and interesting finds may be obtained at surprisingly fair prices.

Likewise there is still plenty of research to be done in determining the finest known examples of many world coins, especially gold pieces. I believe a diligent numismatist who knew nothing about a particular series of gold coins could, with a year's study and investigation, become the acknowledged expert in that area. To my way of thinking such an opportunity seldom presents itself in the realm of United States coins. Certainly not when considering the gold ones!

EITHER SPEND $2000 ON PLANE TICKETS OR 34 CENTS ON A STAMP.

At most smaller coin shows you may find few if any dealers who specialize in world coins. Even at the biggest conventions the dealers in United States coins may outnumber those who deal with the rest of the world by greater than ten to one. It can be very discouraging to be a world coin collector with nothing more to look at in a room filled with otherwise active numismatists.

I've never asked because it would probably depress him, but I'll bet one of my friends, who has been a world coin dealer for the past thirty years or so, has spent at least a half million dollars on airline tickets. To me he is the Indiana Jones of the coin business. I'm sure he wouldn't have gone on all of these adventures if he didn't enjoy it, but thanks to his efforts I've been able to acquire some wonderful coins without having to paddle a leaky canoe down the Amazon or spend the weekend in Manila. His frequent price lists are filled with neat coins I seldom, if ever, see offered elsewhere. Without exception everything is fairly priced and properly graded. On occasion I've returned a coin or two, and every time he's thanked me for doing so. For me this can be an unsettling experience. Why was he so happy to get it back? Was I given a gift, but didn't realize it? Would you like to know the name of this great world coin dealer? I'm sorry but I’m near the end of this report and don’t have enough room to list them all!

ANOTHER PLUG AND THEN I'M DONE.

Get your hands on a copy of World Coin News. This newspaper is published by Krause Publications at 700 E State St. Iola Wisconsin 54990. Just so your request isn't delayed, mention in your letter than Tom Becker asked you to write. Request that they send you a sample copy and subscription information. If nothing else, since there is nothing else, this magazine will help you to get connected with the world coin market. Not every important dealer in world coins offers coins for sale or is otherwise mentioned in this publication but it's a good place to start.

Visiting Internet web sites is also an excellent way to learn more about world coins. Please keep in mind that many world coin dealers are doing business in traditional ways and may not have the time to maintain a presence in cyberspace. This why I also suggested reading World Coin News and contacting dealers to receive their printed price lists.

ONE LAST BIT OF ENCOURAGEMENT.

If you give world coin collecting a try I think you will really enjoy it. The people who collect world coins are great folks who exhibit an enthusiasm and interest that is hard to beat. Both dealers and collectors alike are anxious to make new acquaintances and share their special hobby. The world coin collector is never bored because there is always some new corner of the world to investigate. Please give these coins a try.

This article used by permission. © 2001 Tom Becker Online

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