I wish hobbyists start collecting colored stones in a similar way. Every colored stone is a piece of history.
Times News Network writes:
Senior advocate in the Bombay High Court, Dinyar Madon, accompanied his son to Mumbai’s annual coin fair two years ago, little knowing that he would be sold on a new hobby. Each gold, silver and copper coin that he picked up told a story of an ancient Indian king or the British Raj. He later learnt that there is money to be made exchanging old coins and banknotes, but Madon resolved to build a collection purely as a hobby. He is unwilling to disclose how much he has invested but he has a sizeable portfolio today.
"People invest in the stock market because they get high returns even though there is an element of risk involved. But the advantage of investing in coins and collectibles is that there is no risk. If one has an authentic old coin, one will only profit because a limited number of units are in circulation,” says Malcolm Todywalla of Todywalla’s Auctions, one of the big dealers in the business.
Before enthusiasts bring out the precious hoard of one- and two-paisa coins they have saved from the ’40s and ’50s, though, the dealer strikes a note of disappointment: "Such coins do not offer much in terms of exchange value because they were minted in large numbers and are not too old either. When we say ancient coins, we are talking of those that were minted way back in the 6th century BC, down to the Gupta period, the Kushan period, then the Mughal era and British India coins," Todywalla says.
While the shop around the corner may offer a few rupees for newer coins, the big traders discourage customers who arrive with bagfuls of small change that is 50 or 60 years old. In fact, rather than give these pieces of modern history away for a mere ten rupees each, they are advised to preserve them for their children so that it instills in them a sense of pride and love for their heritage. Perhaps makes numismatists out of them, too.
'Nascent' is the word that experts use to describe the Indian market for old coins and collectibles. Collectibles include other antiques like mill canteen tokens, gold and silver medals awarded to employees and students, or even badges, like those worn by peons in pre-Independence India. Royal correspondence and old share certificates fetch a good price too. It takes but a few thousand rupees to break into the hobby, although there is no benchmark index that can guarantee the exact worth of an investment a few years later.
Vipul Maheshwari, a chartered accountant practising in Mumbai, advises buyers to be prudent while buying so that they do not end up paying too much. "Personally, I think there is a thrill in holding a 1,500-year-old coin in the palm of your hand," Maheshwari says. "For me, this is a passion, not an investment. But there is always the knowledge that the hobby can fetch handsome returns should one ever come upon hard times."
Countries like the US have an organised support system comprising banks and corporates that are dedicated to investing in collectibles, although they have only 200 years of heritage to back them up. An old American banknote has been known to sell for the equivalent of Rs 4 crore. But India lacks the awareness and the organised funding that is available in the West.
Todywalla explains that the demand for an older coin is not always higher than one that was minted more recently. "For instance, India’s princely states all had their own coinage, but our buyers are not familiar with the kings of those principalities or the script that is engraved upon them, so they do not excite as much interest," he says.
Conversely, coins and banknotes minted during the British India period are fast-moving items and their value appreciates quickly, even though they may not be as aesthetic or carry as much detail as the ancient Gupta or Mughal coins. This is simply because they are inscribed in English, a language that the ordinary buyer can relate to.
"Whereas a Gupta coin, narrower in width than our modern 50-paise coin, may bear a detailed hunting scene that depicts King Chandragupta wielding a bow and arrow and shooting a lion," says Todywalla. Of course, such items are sought out by collectors and aesthetes who will spend hours browsing carefully through boxes of dirty, decaying coins just so they don’t miss anything that is vital to their collection.
True, a piece of history has the power to charm everybody from government employees working nine-to-five jobs to professionals and businessmen. Nothing will part a collector from his coins, except the one thing that makes the world go round. Money. It is only when he is in desperate need of finance, mostly to fulfil a family obligation, that he will consider breaking his collection.
But when a passion leads one to invest money and time, then external factors like family dynamics may intrude. Todywalla knows of a lawyer who had built an enviable collection by putting aside a sum of money for his hobby every week. However, his father and his wife did not understand his penchant for spending wads of money to bring home old pieces of metal. They pressurised him to sell off his collection.
Eventually the man buckled and did so, and made a neat profit in the process. "Once they noticed that it was possible to make so much money out of old coins, the family did a turnaround and asked him to go ahead with his hobby if he wished. Of course, he was heartbroken by then, and resolved never to buy another coin. To this day, he comes over two or three times a week to browse, but has never made a purchase," says Todywalla. For most, numismatics is love over money.
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