The extent of the numismatic market is truly astounding. Literally billions of dollars change hands every year for rare coins in even the hardest of times. This is because coins occupy a unique niche in the alternative asset market, being bought not only as luxury collectables but also as ‘safe haven’ investments. The drive to buy coins is fuelled by collector interest but stabilised by a perception of intrinsic value. So, despite being affected by the same uncertainty that sweeps every other sector, coins are able to consistently deliver returns for three main reasons; they represent a tangible asset, they are seen as a constantly appreciating commodity, and the numismatic market is fuelled by both collectors and investors. This means that within a relatively short time, coin values can experience explosive growth.
Within numismatics it can be unclear what to believe or who to trust, and even with proper research we worry that the coin we purchase for $100 might actually be worth just $1. There is plenty of literature available detailing coin varieties, history and a rough idea of values, but the aim of ECoinomics is to educate you the reader - whether you are a novice or an industry professional - in the intricacies of numismatics and the market itself, and to give a truly global perspective of the coin market from the bazaar in central Asia to the auction houses of the US.
Over the course of the book, I address the many factors that determine coin value; the range of participants and platforms in the global market and how collector mentality differs from country to country; the performance of coins as assets plus their risk/return profile; and finally the specifics of how one buys and sells.
ECoinomics is available in both English and Japanese.