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The Death Of Coin Collecting As We Know It?

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matthewvincent's Avatar
United States
3486 Posts
 Posted 10/09/2012  11:57 am Show Profile   Bookmark this topic Add matthewvincent to your friends list Get a Link to this Message Number of Subscribers
(Originally titled: "Of Violins and "V" Nickels",
I wrote it for submission to our Journal. I changed my mind
and thought that it might be enjoyed by the CCF Family.
Besides, smilies do not work in print media.)

---

Is this the death of coin collecting as we know it?

I caught a program on TV the other day.
A British woman was on the hunt to find a Stradivarius
Violin that she might play and perhaps borrow.
The former student of a prestigious music academy, she once had the opportunity to do so. But now as a graduate of the school she no longer had access to these instruments.
Her journey led her to the US where she met with a private collector of violins. Having become very wealthy from his Internet days,
he turned his passion for music to the acquisition of violins and other string instruments costing several million dollars each.
His Seattle home has a room where musicians gather to play on the best instruments available.
The woman was allowed to choose one to play back in Britain. After all, this collector reasoned that a violin which is not played and enjoyed is equivalent
to owning the Mona Lisa and storing it in a closet!

What does this have to do with "V" nickels, you ask?
Well, I chose the 1913 "V" Nickel as an example. But any other coin of sufficient rarity would work as well: that
1933 $20 Gold piece or some of the rare ancient coins would
serve the purpose.
You see, at the end of the program the collector lamented
that the days of private collectors would soon be over.
As the price of rare instruments continue to rise even a billionaire could not afford to do what he has accomplished.
Also, as more investment groups pool their money to buy instruments simply as a vehicle for future appreciation, they will be stored in vaults and never played again.

When the last of the 1913 "V" Nickels held by private individuals is sold, will its fate be a bank vault?
The 1933 $20 gold piece?
A tetra drachma of extreme rarity?
(Sorry Ancients' collectors if I misspelled it!)

It is clear to me that those who share their precious coins with the general coin collecting public
deserve to be praised over and over again.
The ANA for displaying their holdings.
Private collectors such as John Frost of the Barber Coin Collectors' Society
and Gerry Fortin of the Liberty Seated Coin Collectors group.

From the July 2011 "kick-off" of the joint regional coin shows exhibitions:

"Traffic at the Club Tables was brisk on Friday and Saturday.
The general public and Manchester Coin Expo dealers took the time to review John Frost's "Condition Rarity" set of Barber quarters,
Gerry Fortin's Liberty Seated dime collection certified by PCGS, and the display of other Barber and Seated rarities.
"Wows" became common place at both display tables as visitors studied rare coinage items seldom seen at regional shows."

And now, the CCF! At a national show no less!

Time, schedules, family demands and finances may prevent us
from attending coin shows both national and regional. We
who are fortunate to have found this gem among all of the Internet coin groups need only power up our 'puters and browse through a treasure trove freely shared by our membership.

I have been fortunate to share the few little treasures
of which I am the current custodian both here and at the NH Coin Expo. And the kids do so enjoy the road trip! "Daddy, daddy! We want another road trip. Oh PLEASE!"

Coin collecting, die? You tell me!

Edited by matthewvincent
10/09/2012 11:58 am
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jbuck's Avatar
United States
188919 Posts
 Posted 10/09/2012  12:02 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
I think the hobby will be okay. Many of us collect the common stuff, which by definition is common. My bigger concern is the inevitable the end of circulation coinage, which will put a huge dent in the number of new collectors.
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YoungNumismatist's Avatar
United States
360 Posts
 Posted 10/09/2012  12:02 pm  Show Profile   Bookmark this reply Add YoungNumismatist to your friends list Get a Link to this Reply

I had to get a snack while reading this one. I love this article and extremely believe the purpose. We need to share our coins with the world's eyes and not hide them in a safety deposit box. Also, great job with writing this.
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Windchild's Avatar
Canada
1411 Posts
 Posted 10/09/2012  1:53 pm  Show Profile   Bookmark this reply Add Windchild to your friends list Get a Link to this Reply


I have been using coins (and will soon pick up some bills) to help teach my classmates in history.
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larsdog's Avatar
United States
593 Posts
 Posted 10/09/2012  5:45 pm  Show Profile   Bookmark this reply Add larsdog to your friends list Get a Link to this Reply
I don't see any end to coin collecting or of circulation coinage. You may see pennies and nickels go away, but the paper dollar may also disappear, so there will be 3 or 4 commonly circulated denominations. Kids today will be challenged to find all the State Quarters in circulation. They won't need but 3 wheat pennies and a couple of Memorial cents for their Dansco 7070 with examples of what the "old-timers" collected. I can't see a young collector being as fascinated by a 1909 VDB as I was as a kid when wheats were still plentiful in circulation. The only nickels I have before 1938 are in my 7070. The only silver I have before 1959 is in my 7070. Collectors will adapt to reality. I'm more concerned for the future of philately (stamp collecting).
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edgman's Avatar
United States
402 Posts
 Posted 10/09/2012  6:07 pm  Show Profile   Bookmark this reply Add edgman to your friends list Get a Link to this Reply
I sort of believe what matthewvincent quoted was basically right but I think its because we are becoming a disposable society. Everything is throw it away and get a new one. No young person I know of has any sense of keeping something for memorabilia purposes. Some day soon they may find a way to make disposable coins. Debit and credit cards are taking over very fast nowadays. Most of what the mint is putting out is for collectors only. Go into Wal-mart and pay for something with a Presidential dollar and see the reaction.

Just my thoughts

edgman
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FinanceGuru's Avatar
United States
337 Posts
 Posted 10/09/2012  6:08 pm  Show Profile   Bookmark this reply Add FinanceGuru to your friends list Get a Link to this Reply
Even as the U.S. and most major countries are majorly "plastic card" based economies now, there remains a strong interest in coin collecting. I cannot foresee a point where the government mints will stop producing but the actual mintage amounts may decrease.

So, I would say collect more now!
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new12collector's Avatar
United States
55 Posts
 Posted 10/09/2012  6:12 pm  Show Profile   Bookmark this reply Add new12collector to your friends list Get a Link to this Reply
I am more concerned about the decline of circulation coinage (too much online payment stuff!) than coins becoming too expensive because finding cool coins in change is probably what created alot of new collectors- get rid of such a great collector creator and you won't have to worry as there won't be enough people to drive prices up.


Quote:
. I'm more concerned for the future of philately (stamp collecting).

Yes, so am I. Darned email!

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jbuck's Avatar
United States
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 Posted 10/09/2012  7:03 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
I don't see any end to coin collecting or of circulation coinage. You may see pennies and nickels go away, but the paper dollar may also disappear, so there will be 3 or 4 commonly circulated denominations.
We may not see it, but I feel that it will happen eventually. At some point, physical currency will be seen as extremely inefficient. At the very least, I expect government will cease to issue (and back) physical currency in the (distant) future.

I am not saying it like it though.
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Sap's Avatar
Australia
16837 Posts
 Posted 10/10/2012  10:22 am  Show Profile   Bookmark this reply Add Sap to your friends list Get a Link to this Reply

Quote:
When the last of the 1913 "V" Nickels held by private individuals is sold, will its fate be a bank vault?
The 1933 $20 gold piece?
A tetra drachma of extreme rarity?
(Sorry Ancients' collectors if I misspelled it!)

Tetradrachms are pretty common; it's decadrachms (also spelled dekadrachms) that are scarce and super-expensive.

But to answer your question here: A coin's history does not end just because it winds up in a museum or in some collection that never sees the light of day. Coins, especially precious metal coins, are entirely capable of outlasting such temporary human institutions. Even the countries that issued the coins are not likely to outlast them. Museums fold; collections are sold off and dispersed, and great rarities come onto the market once again.

Coin collecting will get harder, and it will get harder to find a coin collector, but I don't think numismatics will ever die off completely. The human population is constantly increasing and not likely to stop doing so anytime in the near future, while the number of surviving coins is decreasing slightly, as it is inevitable that some coins are lost each year through accident, vandalism, natural disasters or recycling.

If the proportion of the population that collect coins were to remain constant, this ever-increasing demand and ever-shrinking supply ought to generate perpetually rising prices for coins; the only thing that could stop this is a reduction in the proportion of the population that are coin collectors. And I agree with jbuck that coins are obsolete technology; they will eventually go the way of the slide rule, crystal radio and oil lamp - they'll still exist, and enthusiasts will still own and treasure them, but they will become historical curiosities, no longer a part of the everyday life of most people. When that time comes, demand for coins will drop, as the number of coin collectors fades into insignificance.

Quote:
Some day soon they may find a way to make disposable coins.

They already have. I believe you call them "zinc Lincoln cents". Use them once, then throw them away.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
Bedrock of the Community
United States
20753 Posts
 Posted 10/10/2012  11:04 am  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
The story appears to be based on one specific items rarety. And yes there are many such itmes in the world. Some coins that have only a few in existance make them an item so few will ever have. Yet coin collecting, as well as many items, goes on and on and on. How many Mona Liza paintings are there? How many 1957 Chevy's are there. How many original Colt Dragoons are there. How many original Bowie Knives are there. Yet there are gun collectors, coin collectors, car collectors, etc. all over the place. Collecting STUFF is just a human trait and regardless of what is available and what isn't, collecting will go on and on forever. Don't belive me. Just look in anyone's garage.
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matchbox's Avatar
United States
1007 Posts
 Posted 10/10/2012  3:24 pm  Show Profile   Bookmark this reply Add matchbox to your friends list Get a Link to this Reply
I think coin collecting will always be around. If for some reason coins are stopped being minted and all transactions are electronic that might spark even more interest in collecting. The government may still mint small qualities for collectors like the they do the half dollar now. It's legal tender but not intended for circulation.




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Bryan1315's Avatar
United States
14454 Posts
 Posted 10/10/2012  6:50 pm  Show Profile   Bookmark this reply Add Bryan1315 to your friends list Get a Link to this Reply
unlike violins coins were never intended to be played or do anything except for either be collected (like the proofs and other special coins) or to be spent to buy items. They actually have been held onto and saved by everyone that could afford to do so from the first coins minted. Collectors are doing nothing but this, we keep the money we want to keep as long as we can. So I don't think it will ever be in danger of dying as long as there is coins out there that can be collected
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sel_69l's Avatar
Australia
21788 Posts
 Posted 10/10/2012  7:25 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
A lot of higher value coins are bought up as investments, and a lot of them wind up in private superannuation funds. At least, that has been a trend for around 20 years or more in Australia.

However, the current 'baby boomer' superannuants will eventually kick the bucket, and the numismatic investments from those funds will find their way back into the market. This is one of many reasons why I think the long term future of numismatics is secure.
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jbuck's Avatar
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 Posted 10/11/2012  3:33 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
The government may still mint small qualities for collectors like the they do the half dollar now. It's legal tender but not intended for circulation.
I think I would be okay if they would guarantee this and then stopped minting all denominations for circulation. Over the last few years it has become exponentially more difficult to find the new releases in change. If all coins were NIFC, I could justify purchasing the full mint set.

Do not get mad at me, I am just pondering the possible.
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matthewvincent's Avatar
United States
3486 Posts
 Posted 10/11/2012  3:53 pm  Show Profile   Bookmark this reply Add matthewvincent to your friends list Get a Link to this Reply
I am gratified to see so many well-thought responses.
There is, of course, no correct nor incorrect answer.
But it got you all to think!

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