Thursday 29 December 2011

Cashing in on old coins and notes

Patience and passion can help you make a sizeable profit from an avocation. Here are five hobbies that can help you diversify your portfolio and earn high returns.

Cashing in on coins and notes 
    When Suhas Kadam, an employee in the private sector, wanted to buy a house in 2009, he chose a unique way to fund the down payment—selling 252 ‘error’ coins that he had collected over 25 years.

Hottest Gains and Return on Investment from Indian coin

 Each coin had a minor error that had crept in when it was minted and was probably considered worthless at the time. But they helped Kadam earn 6 lakh on selling them. Coins as investment: “The returns from investing in coins and bank notes ranges from 20-30% on a year-on-year basis,” says Farokh S Todywalla, owner of Todywalla House, a Mumbai-based auction house. Agrees Shamji Vinchhi, a coin dealer who bought an East India Company coin of 1808 four years ago for 100, and which is now valued at 3,000.
    Experts say the astronomical returns are because of demand and supply mismatch. The number of people showing an interest in numismatics has been rising, but the supply of antique coins hasn’t increased in the same proportion.
    The other reason is that with the
    increase in the value of gold and silver, the intrinsic value of old coins also rises. However, all collectors stress on one point: it isstrictly an interest-led investment. It would be foolhardy to collect coins only because of the potential returns. “Unlike other investment classes, coin collecting is illiquid and is not institutionalised,” says Harsh Dalal, regional head, Altamount Capital. Minting money: Experienced collectors suggest one should start by investing small amounts, about 1,000 a month. 

“There are two ways of acquiring coins—purchasing them from a dealer or by sourcing them from coin and paper money exhibitions that are conducted by private collectors and traders,” says Dalal. Family and friends, besides jewellers, are also good sources.
    While buying from a dealer, check if he has a licence and permit. Purchasing from an auction is always a better option as the chances of the product being authentic are higher. However, the prices generally scale up at auctions due to the aggressive bidding.
    Most sellers offer a money-back guarantee if the coin is not genuine. However, in case the coin was bought at an auction, only the minimum bid price will be returned. The value of a coin does not depend only on its age, but on several other parameters, such as its condition, rarity and metallic value. You can take the help of various agencies to find out the true worth of your coin.
    Uncirculated coins (or proof coins), which were minted for a collection or presentation, have greater value. “A common silver British Indian rupee would be worth 500, but its proof version would be available for 5,000,” says Todywalla.
    To sell your coin, you can approach a dealer, an auction house or put it up on a website, such as eBay. Auctioneers charge around 10% of the total sales.

Source:Economic Times 2011 End Edition

2003-IT Services Explosion 
2008-Real Estate skyrocketed
2010-Yellow Metal Gold and Silver touched the Roof.
2012-2015 Hobbies ,Old Coins will shoot and attain the  maximum . strongly believes the Future of  2012-2015  Coin Markets. yet to launch a Survey on predictive markets of Numismatics. We strongly agree to invest an partly amount of 10% of your income on Hobbies especially Old coins and Notes.


  1. HI,
    This is Rohit, very good and informative blog keep it up 
    I too share the same interest like you and I am developing my blog, kindly visit and give your valuable feedback. It will be helpful for me to share the information.
    Thank you
    Rohit B

  2. This is really a very informative blog for someone like me who loves collecting rare Indian banknotes..

    republic India notes

  3. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. 신용카드 현금화


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