Hobbyist Bemoans Rise of Profit Motive

Question: I am interested in your views about the split between coin collectors and coin investors. As a boy 30 years ago, I enjoyed building coin collections from spare change (buffalo nickels, Lincoln cents) with only an occasional purchase from dealers. Nowadays, I have returned to find that coin shows are dominated by dealers who focus on investors, specializing in gold and silver uncirculated coins. The aim is to make a profit, not to enjoy building a collection. How did this new trend develop, and how do you think it has affected numismatics? --S.L.G.

Answer: There is a definite division between coin collectors and investors. Unfortunately, the investors seem to be winning. Owning a coin for the pure pleasure of having it is losing out to buying a coin and turning it over for a profit.

Numismatics should be treated as a hobby, with the profit potential secondary. It should be fun rather than an exercise in bookkeeping.

It’s too bad that numismatics has come to this, because true collectors can have hours and hours of fun and relaxation just by studying a particular coin, reading about it and discussing it with fellow collectors and sympathetic dealers.

There does seem to be conscious effort by many in numismatics to get back to the basics of collecting. This should be encouraged and nurtured by coin clubs, industry organizations and dealers.

Until that day, however, you can expect to see investors with the involvement of major brokerage houses playing a major role in what used to be a genteel hobby.

Coin News

Gold and silver coins commemorating the 1992 XVI Olympic Winter Games at Albertville, France, are being issued by the Paris Mint. The complete Olympic set will consist of 19 coins--10 that are 92% pure gold and nine that are 90% pure silver. Gold coins have a face value of 500 francs, the first time a French coin has carried such a high denomination. The silver pieces are 100 francs face value. Four coins, two gold and two silver, will be issued every six months. The first gold issues, now available, include an Alpine skier racing down Mont Blanc (pictured). Gold mintage is limited to 30,000 worldwide, silver to 300,000 for the series. Contact MTB Banking Corp., 90 Broad St., New York, N.Y. 10004; telephone (212) 858-3300.