Numismatics is the study and collection of coins, banknotes (paper currency), and medals. A numismatist is a person who studies or collects these forms of currency.
This hobby allows collectors to explore history, art, and culture through tangible items with value.
Collecting coins, banknotes, and medals opens a world of history and artistry.
Each item tells a story—reflecting historical events, prominent figures, and unique cultural symbols. Additionally, collecting offers investment potential, as rare and well-preserved items can appreciate over time. This Beginner's Guide to Collecting aims to support newcomers by providing essential information to kick-start their numismatic journey.
To-Do List Before Starting Your Collection
Study Historical Context
Learn about the history of Philippine money and research the historical background of the items you're interested in. Understand their history, significance, and value. Use books, online resources, and numismatic catalogs to gain deeper insights into each piece.
Check out the books page for a list of reference books.
The following Online Sources are also a good start:
BSP: The BSP website offers an overview of Philippine currency history, including current and demonetized coins and banknotes.
BSP Money Talk: This is an old episode of Money Talk from the BSP that discusses the history of Philippine currency. The episode also covers a list of collectible numismatic items for collectors.
Wikipedia: This free online encyclopedia covers a wide range of topics, including articles on the Philippines and other countries history, as well as their currencies.
Define Your Collecting Goals
Establishing clear goals can help guide your collecting efforts
Theme/Focus: Determine if you have a specific focus for your collection, such as Philippine coins, rare banknotes, or military medals.
Completion Goals: Decide if you want to complete a full series or set.
Investment Potential: Consider whether you are collecting mainly for investment purposes, historical interest, or personal enjoyment.
Types of Coins, Banknotes, and Medals to collect
Consider these categories for your collection:
By Country: Focus on collecting currency and medals from a specific country (e.g., the Philippines), or explore international items.
By Era: Collect items from particular historical periods, such as ancient coins, colonial banknotes, or medals from World War II.
By Theme: Base your collection on themes, such as famous leaders, commemorative events, or cultural symbols.
By Denomination: Start with small denominations for coins and banknotes, or less rare medals, and gradually advance to rarer or higher-value items.
By Metal Content: Focus on collecting coins base on its precious metal like silver or gold.
Error Coins and Misprints: Some collectors focus on coins or banknotes with minting or printing errors, as these items are often unique and highly valuable.
Commemorative Coins/Medals: Collect coins or medals that commemorate significant events, such as military victories or anniversaries.
Award and Honor Medals: These medals often represent personal or military achievements and can be rare and historically significant.
Research Types of Collectibles
Explore sites that offer comprehensive lists of collectible items that may pique your interest
BSP: The Bangko Sentral ng Pilipinas (BSP) website offers an inventory of both collectible current and demonetized coins, as well as banknotes.
Wikipedia: For further exploration, Wikipedia hosts informative articles on Philippine peso banknotes and coins, serving as excellent introductory resources.
Numismatics: The Numismatics website presents a thorough list of Philippine coins, banknotes, and medals, making it a valuable source for enthusiasts and collectors.
Numista: Additionally, the Numista website supplies information on coins, medals, and banknotes from various countries around the globe, including details on mintage and varieties.
TPG: You can also use the population report from third party graders as reference for items you want to collect.
COINS:
PCGS Philippines Culion Island
BANKNOTES:
Understand the Numismatic Value and Market Trends
Numismatic value refers to the worth of a coin, banknote, or medal beyond its face value or metal content. This value is influenced by factors such as rarity, condition, demand, historical significance, and sometimes aesthetic quality. It is important to note that numismatic value is distinct from intrinsic value or face value.
Face Value: The legal value printed on currency (e.g., a P100 bill).
Intrinsic Value: For coins or medals, this could be the melt value or the worth of the metal content itself.
Numismatic Value: This goes beyond face or intrinsic value, focusing on the collectible qualities of the item.
Factors Influencing Numismatic Value:
Rarity: Items that have a limited mintage or few surviving specimens generally possess a higher numismatic value.
Condition/Grade: Well-preserved items, particularly those that are in uncirculated or mint condition, can command a premium price.
Historical Significance: Coins, banknotes, or medals from important historical periods or events are often highly valued.
Demand and Collector Interest: Items that are popular among collectors, such as certain colonial-era coins or notes, tend to have a greater numismatic value.
Unique Characteristics: Features like misprints, errors, or unusual designs can enhance the numismatic value of an item.
It’s important to note that no governing body determines the prices of collectible coins, banknotes, or medals. Their value is mainly influenced by market demand and collector interest. To get a better understanding of market pricing and where to buy, consider starting with the following resources:
Coin Stores: Check for local coin dealers or shops near you.
Online Stores: Many people buy and sell coins online. In the Philippines, Facebook is a popular place for collectors. Join relevant groups to see different items at various prices. Other sites to explore include Carousell, which is local, and eBay, which connects you to sellers worldwide.
Coin Shows and Auctions: Attend coin shows or auctions for hands-on experience. In the Philippines, Moreton Auctions and Minted Manila frequently hosts coin events. You can also visit international auction house websites like Heritage Auctions, Stack's Bowers, or GreatCollections, etc... to look at their past sales.
Third-Party Grader Price Guides: For pricing references, check the websites of third-party graders like NGC, PCGS, or PMG, especially when it comes to graded items.
PCGS US-Philippines Price Guide
Connect with Collectors: Join groups or forums to gain price insight from seasoned collectors who can guide you.
Understand Grading Standards
When collecting items, it's essential to understand the condition of coins, banknotes, and medals, as this greatly affects their value. Each type of item is graded differently, considering factors such as wear, damage, and preservation.
Grading standards are well-established, with most collectors and dealers using the Sheldon Scale, which ranges from 1 to 70. This scale evaluates the item's condition based on aspects like wear, luster, and overall visual appeal. Here are the main grades on the Sheldon Scale, though there other grading systems like the European System and the American Numismatic Association Scale:
Poor (P-1 to P-2): Barely identifiable; extreme wear with almost no details visible.
Fair (FR-2): Heavily worn, though some details are visible.
About Good (AG-3): Significant wear, but major designs and dates can be identified.
Good (G-4 to G-6): Heavy wear with major details visible but faint.
Very Good (VG-8 to VG-10): Moderate wear, with some small details visible. Fine (F-12 to F-15): Moderate to heavy wear, with most major details sharp and clear.
Very Fine (VF-20 to VF-35): Light to moderate wear on high points; all details visible.
Extremely Fine (EF-40 to EF-45): Minor wear on high points; nearly full details.
About Uncirculated (AU-50 to AU-58): Very slight wear only on highest points.
Mint State (MS-60 to MS-70): No wear; grading based on luster, strike quality, and eye appeal, with MS-70 being a perfect coin with no marks.
Set a Realistic Budget
Determine Your Spending Limit: Be realistic about how much you're willing to spend on your collection, especially if you're just starting. Some coins, banknotes, or medals can be quite expensive, so it's essential to stay within your means.
Allocate Funds for Future Growth: As you progress in your collecting journey, you might want to expand your budget to acquire rarer or more valuable items.
Factor in Tools and Storage: Include the costs of tools (such as a magnifying glass and gloves) and storage solutions (like coin albums and banknote sleeves) in your budget.
Identify Common Pitfalls
Learn to spot counterfeit items, altered coins, or misleading sellers. The following links provide helpful details for spotting counterfeit coins:
Check if a coin is counterfeit
For banknotes:
Beware of Overpriced Items, Make sure to do your research to avoid overpaying. Some sellers inflate prices, especially for beginners.
Connect with Collectors, join groups or forums to gain insight from seasoned collectors who can guide you.
Learn to Handle and Care Your Collection
Proper care for a numismatic collection is essential for preserving coins and banknotes, ensuring that their value and aesthetic appeal are maintained over time.
Checkout the article about: How to Care for Your Collection
Purchase Essential Tools
Magnifying Glass and Microscope: Use these tools to inspect fine details, mint marks, and the surface conditions of coins, banknotes, or medals.
Digital Scale and Caliper: These measuring devices are useful for checking the weight and diameter of your coins.
Magnet and Magnetic Slide: If you collect silver coins, a magnet can be a helpful tool since silver is a non-magnetic metal. Strong magnets, like those found in hard drives, work very well for this purpose.
Learn the Basics
Familiarize yourself with key terminology and concepts related to coins, banknotes, and medals (e.g., grading, mint marks, proofs, and conditions).
Obverse: The front or "heads" side of a coin, typically displaying the main design, such as a portrait or emblem.
Reverse: The back or "tails" side of a coin, often showcasing a secondary design or denomination.
Edge: The outer border of a coin, which may be plain, reeded (grooved), or inscribed.
Mint Mark: A small letter or symbol on a coin indicating the mint where it was produced.
Field: The flat background area of a coin's surface, free from design elements.
Relief: The raised design elements on a coin or medal above the flat surface (or field).
Legend: The inscription or wording on a coin, such as the country's name or motto.
Date: The year a coin was minted, typically found on the obverse or reverse.
Denomination: The face value of a coin, such as 1 peso or 25 centavos. (Check out this link for more terminology.)
TPG: Third Party Graders, these are companies that provide grading services like PCGS (Professional Coin Grading Service), NGC (Numismatic Guaranty Company) or PMG (Paper Money Grading)
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With a solid foundation in place, you're ready to begin building your numismatic collection. Start exploring and collecting today!
When ready checkout Building Your First Collection
Editors Note: This post was originally published June 19, 2022 and has been updated for accuracy and comprehensiveness.
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