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COIN
COLLECTING
Some
Thoughts on the “ World’s Greatest Hobby”
By Julian M. Leidman
Featured
in the U.S. Rare Coin Handbook by Les and Sue Fox.
Numismatics,
or coin collecting is primarily a hobby.
In fact, what once was the hobby of
Kings, has evolved into a hobby,
which by some estimates, includes more than 100,000,000 people.
Enjoyment and enthusiasm are the most important factors in
building a collection.
People continually ask me and many of my
professional colleagues and fellow hobbyists, “What should I
collect?” I urge people
to examine numismatics thoroughly, to investigate the economics involved
in forming a given collection and choose to build a collection which
would generate the most personal enthusiasm.
What do I collect? I
have no personal collections, but I take a great deal of pride,
satisfaction, and sense of accomplishment assisting in the development
of clients’ collections, some of which have been great, but all of
which have been important. I
can safely say that there is no bad collection.
If someone enjoys it, then it has meaning and is a positive
experience.
Another important aspect for your collection is FOCUS.
Unless you are incredibly wealthy, it is a must to focus on a
collection or collections. Define
your collection. Numismatics
is very personal. There is
no one collection which must be completed.
Choose yours and define the parameters.
Have a reachable goal. It
is very disheartening to a new collector to be working on ten different
series of coins and to have many holes throughout the collection.
Keep your focus so that you may finish a project before starting
on a new one. Additionally,
avoid keeping duplicates. These
just use up necessary capital to help fund new acquisitions.
Along these lines, I would like to publicly address the major
institutions in the United States and perhaps the world.
Divest yourselves of your duplicates.
The Smithsonian Institution houses our national collection.
The collection has needs to augment as well as upgrade.
The collection also has probably over a million duplicates.
The great collections housed in the American Numismatic Society
and the American Numismatic Association all have needs for improvement
and addition. All three of
these, and I am sure many others share the same scenario.
That is, important collections with many duplicates, with a
desire to improve those collections and the crippling reality that they
do not have the funding to do it while waiting and hoping for new
bequests. I am certain that
previous donors to those collections would want to see them flourish and
would not object to the divestiture of duplicates to enhance the overall
collection which they had already supported.
I know that I have digressed, but it serves to illustrate the
importance in disposing of duplicates
to better enhance a collection.
An additional suggestion is to avoid multiple transactions for
the same coin. Simply as
part of your investigation into numismatics, make sure you are happy
with the appearance of what you have chosen.
Avoid the philosophy of filling a hole in the collection and
upgrading it later. It costs money to trade in coins on a better example.
Wait and obtain a better example without having to take a loss on
what you are improving. Dealers need to make a living and each time you buy or sell,
the dealer is making a profit. Investigate and buy the coin you are
happiest with. Happiness
equals enjoyment.
Grading is the one aspect of coin collecting which receives the
most commentary . Grading
was developed and has evolved as a way to value an item.
Do not get hung up on it. In
reality, it is not that important.
You have selected a series and have examined specimens to see how
they look. You have discovered how much money these coins cost before
you have started. Now, the easy part, buy only the coins which look the way you
want them to look AND fit into your budget.
Because of your initial investigation, there should not be very
many, if any, surprises. Do
not let someone else tell you what to enjoy.
If you like it and can afford it, add it to your collection.
Coin collecting has many enjoyable aspects, including the dealers
and other collectors with whom to share information and mutual interests.
As a new collector, your initial transactions will probably be
with coin dealers. Many
dealers operate retail
stores which you can visit and examine the displays.
Almost all of these dealers want to encourage you with your
collections and will try to help answer many of your questions.
Dealers do need to make a living so do not abuse their
willingness to help you. If
they can not help you one time, try another time.
Almost anyone will help you if you are patient and polite.
If the dealer is unwilling to help you on several different
occasions, simply find one who will.
There are thousands of dealers who understand collectors and
collections and want you to succeed.
The vast majority of numismatic professionals were all collectors
themselves at one time. In
the internet age there are many resources and
dealers who want to help you be successful with your collection.
It is simply good business.
In addition, there are your fellow collectors and the many
diverse specialty clubs and societies which connect hobbyists with
similar interests. Simple
investigation will enable you to find these groups.
Almost all areas have coin clubs.
Find one and join it. The
American Numismatic Association, headquartered in Colorado Springs
offers an incredible value for very modest dues.
The ANA has a dominant presence on the internet and offers many
resources at www.money.org.
The site offers links to a multitude of numismatic organizations.
I am sure there is more information on the ANA in this book. Look for them!
Coin shows and conventions add an additional opportunity for your
numismatic pursuits. These
vary from a small one day show with twenty dealers to mammoth coin
conventions lasting many days with several hundred dealers,
organizations, and governments displaying as well as offering
educational seminars and club meetings. Many, if not most, of these are free to enter and enjoy.
Take advantage of the opportunity and attend as part of your
initial investigation and your continuing enjoyment of this hobby.
As previously mentioned, there are many museums with numismatics
to share. Visit them and if you have questions, jot them down.
Somebody will be able to help you eventually. The curators are not always available and the guards may not
be equipped to help you.
There is an incredible amount of information available concerning
numismatics including thousands of books available to help identify
coins, notes, tokens and medals. There
are also many periodicals available covering all of numismatics. And then there is the internet.
I have always felt that you can not make a collector.
Collectors are born with a desire to complete a historically
based project. Numismatics
offer a tangible link to the past, often at a very modest cost.
The most financially successful people in numismatics have been
serious, long term collectors. The
collections have often been generational or even multi-generational.
A collection is not a short term financial tool for capital
growth. The successful
numismatist derives much satisfaction and enjoyment, all of which is
tax-free! The successful numismatist has great enthusiasm for his or
her hobby.
In as much as you are reading this, I suspect that coin
collecting is in your blood. Hopefully
these thoughts have been helpful. Go
forth and enjoy!
Biographical Information
Julian M. Leidman was born on October 8,1946 in Albany, New York
and grew up across the Hudson River in Troy.
In the late 1950’s, at his mother’s suggestion, he tried
collecting coins. Searching
coins from merchants and banks in Troy, he built an enjoyable and
meaningful collection. Having
many friends sharing the hobby added to his enthusiasm.
His earliest dealer contacts were with Charles French and his
associate Les Zeller. After
moving from Troy to suburban Washington, D.C. during high school, he
discovered Bonanza Coins, near his home.
Operated by Albert L. Bonan and his father, Albert Bonan, they
instilled in him many of the practices he employs today.
He has attended hundreds of numismatic events nationally and is a
member of many numismatic organizations, including the Professional
Numismatists Guild. After
more than a third of a century in numismatics, he looks forward to many
more years of involvement. He
now operates Bonanza Coins, in Silver Spring, Maryland, after Mr.
Bonan’s retirement, and continues to attend numismatic exhibitions
across the nation.
He is married to Fran and they have two wonderful children, a
daughter, Robyn and a son, Sam.
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