Numismatics

Numismatics is the hobby of collecting coins, banknotes, medals, tokens, and related items, and it is one of the world's most common hobbies. Currency from another country or region is a readily accessible souvenir that can be shared with others upon your return from travel, or a potentially interesting gift from your home country for those you visit abroad.

Understand

Numismatists can have various levels of investment in the hobby: while it's common for people to have casually collected sets of their home country's coins, or those of the place they've traveled, some numismatists have expansive, thoroughly documented collections of coins and currency from all over the world.

More specific terms exist to describe subfields of numismatics:

• Notaphily is the hobby of collecting banknotes.
• Scripophily is the hobby of collecting company shares, stocks, bonds, private bank issues, and related documents, collectively referred to as scrip.
• The related field of philately is the hobby of collecting stamps and postal supplies, and may or may not be considered to fall under the umbrella of numismatics.

What to collect

While there are no restrictions on what a numismatic collection can consist of, many numismatists have interests in specific kinds of currency or specific sets they wish to complete.

• Type sets: These are sets of related issues. There are many ways one could construct a type set.
  • Denomination sets: These consist of every coin or banknote denomination in a series or year. For example, a Euro coin denomination set would consist of a 1c, 2c, 5c, 10c, 20c, 50c, €1 and €2 coin.
  • Design sets: These consist of every design in a series, or perhaps the different designs of different series. In the United States, a full set of the 50 State quarters is one of the most type sets collected, and can be easily assembled from coins in circulation.
• Themes: Currency from many different places share design themes, such as animals, inventions, or sports, to name a few examples.
• Obsolete currency: Some countries have redenominated or devalued an older currency and replaced it with a new one, or perhaps the issuing authority no longer exists. It is common for the older currency to have lost its value either through inflation or cancellation of its legal tender status, but this can make it much more affordable and are a great option for budget collectors.
• Hyperinflated currency: Some currencies have experienced hyperinflation that required comically large denominations of coins or banknotes to be produced: perhaps most famously, the Papiermark and Zimbabwean dollar.
• Commemorative issues: Commemorative coinage is commonplace throughout the world, and more rarely, commemorative banknotes are printed. These can commemorate national events of significance, such as independence days, the births of important national figures, or even total solar eclipses. Some issues are easily found in circulation, others will have to be ordered from a mint or searched for at a coin shop.
• Errors: Not all currency is created equal, and some currency is created with defects! While many minor errors (slight off-centering of a strike or print) are tolerable, sometimes significant errors slip through and make it to circulation. While these are hard to find without searching through large amounts of currency (or simply purchasing them), they tend to be worth significantly over face value. Errors can be subtle and systematic, such as the misspelling of "responsibility" on the 2018 issue Australian $50 note, or truly dramatic one-offs, such as missing or inverted strikes or prints, or the holy grail: the double denomination error (the front of one denomination and the back of a separate denomination struck or printed onto a single coin or banknote).
• Proof coinage: Usually sold at a premium, these are specially struck coins that present mirror-like fields, making them stand out from the business strikes used for circulating coinage, and make for exceptional display pieces. Recently, reverse proof coinage has been made available: these coins have matte fields but the designs take on a mirror polish.
• Precious metals: While precious metal coinage is rarely seen in circulation, many countries and mints have special issues made from precious metals. Sometimes these are identical in design to current issues, but in other cases they have their own unique designs. Silver and gold are the most common metals available as coins and bullion, but some mints also offer platinum and palladium. There are also novelty coins made from exotic metals, such as niobium or ytterbium.
• Replacement banknotes (star notes): Some countries will replace banknotes that were found to be defective in the printing process with a different banknote that may have a special serial. In the United States, replacement banknotes have a star instead of a letter as the final symbol of the serial number, and are usually referred to as star notes there. These are relatively rare, but may not always command a high premium.
• Fancy serial numbers: Some banknotes have interesting serial numbers, and in some cases these can be quite valuable. There are many types of fancy serial numbers, but a few examples of sought-after serials often commanding a premium are given below:
  • Low serial: The first issues in a print run. Single digit serials are especially sought after, especially serial number 1.
  • Solid serial: All numbers in the serial are the same.
  • True binary serial: All numbers in the serial are zeros and ones.
  • Radar serial: The serial is a palindrome (reads the same forwards and backwards).
  • Birthday/date serial: The serial number can be interpreted as a date or birthday. Numerous groups exist to match banknotes with date serials with those for whom the date hold significance (birthdays, anniversaries, etc.)
  • Matched serials: While not fancy on their own, finding two banknotes of different series or denominations with identical serial numbers is an impressive feat. It can be easier to match fancy serials (compared to random serials) due to the limited number of possibilities and the higher chance of finding a matching fancy serial for sale somewhere.
• Uncut sheets of banknotes: Banknotes are often printed in large sheets that are cut down to the proper size at the end of the process. Some banknote printers offer sheets of uncut or partially cut currency.
• Courtesy autographs: Banknotes often have signatures of bank presidents, national treasurers, or other important figures as part of the design, but having the banknote autographed in-person by the signature bearer makes for a unique and potentially valuable addition to a collection. Sometimes these can be acquired by mail, and a few of these figures are known to appear at coin shows and provide their autographs.
• Rolls, mint bags, and straps: Though inherently more expensive, it is often possible to acquire entire rolls or mint bags of coinage or straps of banknotes, including uncirculated currency. Often, collectors search through rolls or straps to look for errors, fancy serials, or gem quality coins or banknotes, spending the rest.
• Exonumia and novelties: This includes everything that is adjacent to currency collecting: bullion, pressed coins, test prints, blank planchets, tokens, medals, checks, banknote straps, and more.

Prepare

For the casual collector, little preparation is needed: all you need to do is set aside some coins and currency from the countries you visit. In some countries where electronic payments are the norm (Sweden, for example), obtaining coins and currency may require a little more effort.

Finding currency

Numismatism can be as simple as inspecting pocket change. For those assembling denomination type sets, you may find that your handful of change contains every coin you need to start the set.

Banks can often provide rolls of coins or straps of banknotes upon request. Depending on the bank, you may need to be a customer with an account. This may be a requirement to obtain lesser-used denominations not commonly found in change (for instance, the United States half dollar coin and $2 bill).

Interacting with bank tellers

Bank tellers can be a numismatist's best friend. If you have good working relationships with bank tellers, they may be kind enough to set aside interesting finds that come their way for you. Always accept anything a bank teller saves for you that you're able to take: the worst possible outcome is that you get usable currency for face value. The best possible outcome is that they give you a numismatic trophy item worth well over face value. Regardless, they will be more inclined to save something interesting for you in the future.

If you're looking for something specific, try to keep your requests as simple as possible unless the teller seems interested in helping you with a more specific search. (Note that this is not rare, giving a teller something to search for can alleviate their boredom on the job.) It can help to broaden your request and take larger amounts of coins and notes to search for what you want yourself. If a teller seems interested in helping you with a more specific search, given them a written description of what you're looking for goes a long way.

Avoid depositing large amounts of coins and low-denomination banknotes at a bank. In particular, if you search through rolls of coins or straps of banknotes, don't take them back to the same place! These are often nightmares for tellers to count, so you're better off spending them somewhere else. On the flip side, tellers are often eager to get rid of large numbers of coins and low-denomination banknotes. This can be especially true for straps or partial runs of freshly printed, uncirculated currency, which can be sticky and hard to count accurately.

If you're looking to collect an uncirculated currency strap in its original condition, you may want to ask that the strap not be hand-counted, since it is standard procedure for some banks to count all incoming banknotes. This is usually accomodated, since the straps are of a fixed value guaranteed by the production facility, and this reduces the chance of handling damage. As a bonus, you get to keep the original strap from the production facility, which may be valuable in itself.

Supplies

For the more committed collector, it may be a good idea to bring some supplies specifically for numismatism when you travel. The most useful supplies are coin flips and rigid banknote holders: these provide protection from the exposure to the elements or damage. Currency holders are especially recommended for storing uncirculated currency, preventing it from being folded or bent.

In general, avoid PVC (polyvinyl chloride) holders for coins and currency, as the plastic can degrade over time, releasing chlorine that can corrode coinage metals or bleach currency inks. This is especially true if the holders are exposed to sunlight. Instead, look for Mylar (made of biaxially oriented PETE, polyethylene terephthalate) or polyethylene holders for long-term storage, as these are less prone to degradation.

For collecting coin type sets, carboard holders with slots for each coin are available for popular sets. However, ensure that the cardboard is acid-free: like other paper products, some carboard will leach out acid over time, which can cause corrosion of metals or discoloration and bleaching of inks.

If you're looking for ancient coins, a metal detector is a worthwhile investment.

Storage and care

Keep coins and banknotes away from temperature extremes and bright sunlight or ultraviolet light.

Some kinds of coins are made from alloys or compositions that are prone to tarnishing or corrosion. Examples include the copper cladded zinc of United States pennies and the managnese brass of United States dollar coins. These coins are best stored in airtight capsules. Although silver is generally resistant to corrosion, this is not the case if it comes into contact with sulfur-bearing materials, including polluted air.

Cleaning coins and banknotes is rarely recommended. It is very easy to reduce the value of collectible currency through improper techniques and treatment. This includes wiping coins with metal polishing solutions or ironing banknotes. The only exceptions to this are ancient or extremely rare issues of great value, in which case, careful restoration work may be warranted - but you'll want to consult an expert for a full evaluation or restoration.

Grading services and scales

Many services exist that can grade coins, currency, or even other collectible items such as trading cards. The most commonly used services are NGC (coins only), PCGS (coins and banknotes), and PMG (banknotes only). Note that grading generally does not increase the value of a coin or banknote, and is often expensive, especially for single coins or banknotes. The purpose of grading is to verify the authenticity or condition of a banknote, which may be especially useful in cases where a banknote has an error or courtesy autograph, or if it is suspected to be eligible for the upper echelons of the grading scale. Grading may also make it easier to sell a particular coin or banknote, either through more accurate pricing or through higher trust in the item by a potential buyer.

Grading services will often use a variation of the Sheldon scale, a scale ranging from 1 to 70, often accompanied with a worded description, which may vary between graders. 1 (Poor) refers to a metal disc barely recognizable as a coin or a horribly stained, torn, and limp banknote with a nearly indistinguishable design, usually not collectible except for rare issues of historical interest. 70 (Perfect Uncirculated) refers to a perfectly struck coin or perfectly printed banknote with no evidence of damage or human handling and exceptional eye appeal - it is rare for any coin or banknote to be produced so that it qualifies for this grade. Note that terms like "Good" and "Very Fine" refer to low grades on the scale (6 and 20, respectively), which may be surprising for those new to the hobby.

Many books that list prices for coins and banknotes of numimsatic interest will do so for grades 20 (Very Fine) and 63 (Choice Uncirculated), and numismatic communites will often use these terms or numbers to refer to their assessment of the condition of currency, so it is useful to be familiar with the scale even if you don't intend to pay for a grading service.

See

Coin shows

Coin shows are a great way to meet other numismatists, see their collections, and buy, sell, or trade coins, banknotes, or other items. Many localities have their own small coin shows, but larger shows can draw numismatists from across a continent.

Mints and printing bureaus

Many countries have mints or printing bureaus that produce coinage or banknotes. Sometimes, minting or printing is outsourced to a private firm which may not even be located in the same country as the issuing bank.

Australia

The Royal Australian Mint produces the coinage of Australia and is located in Canberra.

The Perth Mint is Australia's bullion mint, and is one of the original Australian mints that produced coinage before the Royal Australian Mint opened in 1965.

Note Printing Australia prints Australia's banknotes and passports. Tours are available for schoolchildren, but it is unclear whether the facilities are open to the general public.

United States

The United States Mint has four locations in Philadelphia, Denver, San Francisco, and West Point. Coins minted at each of these sites may be given a mint mark: the letters P, D, S, and W respectively, with the last usually reserved for premium products, like proof coinage and coinage struck from precious metals.

The Bureau of Engraving and Printing (BEP) prints all of the banknotes and passports of the United States. It consists of two facilities: one in Washington, D.C., and one in Fort Worth. Tours are usually available on site. Currrency printed at Fort Worth is identifiable with the letters FW preceding the plate number.

The United States Mint and BEP share an online storefront at catalog.usmint.gov.

Central banks

Not all central banks are intended for public visits, but a few have visitor centers, tours, exhibits, or museums. Some central banks are able to exchange coin and currency, potentially for uncirculated issues.

Australia

The Reserve Bank of Australia has branches in Sydney and Canberra. The Canberra branch can provide uncirculated Australian dollar banknotes for face value.

United States

The Federal Reserve System is the central banking system of the United States. The Federal Reserve consists of twelve Federal Reserve Banks. On Federal Reseve Notes, the first letter (for $1 and $2 notes) or second letter (for $5, $10, $20, $50, and $100 notes) of the serial number represents the issuing bank.

• Federal Reserve Bank of Boston (A)
• Federal Reserve Bank of New York (B)
• Federal Reserve Bank of Philadelphia (C)
• Federal Reserve Bank of Cleveland (D)
• Federal Reserve Bank of Richmond (E)
• Federal Reserve Bank of Atlanta (F)
• Federal Reserve Bank of Chicago (G): This bank has the Money Museum, which is open to the public on weekdays (aside from bank holidays).
• Federal Reserve Bank of St. Louis (H)
• Federal Reserve Bank of Minneapolis (I)
• Federal Reserve Bank of Kansas City (J)
• Federal Reserve Bank of Dallas (K)
• Federal Reserve Bank of San Francisco (L)

Federal Reserve Banks do not provide coins or banknotes directly to individuals. These may be acquired for face value at consumer banks, but you may need to be a customer of that bank, and uncirculated coins and banknotes are not always available.