# Unlocking Numismatics: Coin Study, Qualifications, and Value

## What Is Numismatics?

Numismatics is the study of money and currencies, with a focus on physical properties, production, and historical context of coins and other payment media. Unlike casual coin collecting, numismatics involves detailed research into a coin's rarity, origins, and economic role, which can reveal significant collectible and investment value.

In the U.S, aspiring numismatists often pursue specialized courses and exams through organizations like the American Numismatic Association to gain professional credentials. The field also ties into broader economic ideas, such as Gresham's Law, which helps explain how certain coins gained or lost value in circulation over time.

### Key Takeaways

*   Numismatics focuses on the study and collection of coins, assessing their rarity, production, and historical context.
*   Rare coins and currency can trade well above their face value and are often considered investments.
*   Numismatics began during the European Renaissance and involves more intensive study than just coin collecting.
*   The U.S. has specific courses and exams for those pursuing certification as a numismatist.
*   Numerous organizations support numismatic study, such as the American Numismatic Society and the Royal Numismatic Society.

## Exploring Numismatics: Beyond Coin Collection

Numismatics differs from historical and economic studies of money. Numismatists study the physical attributes of the payment media rather than the use and function in an economy. While numismatics is often used interchangeably with coin collecting, it involves a more in-depth study than merely collecting coins. It could be said that all numismatists are coin collectors, but not all coin collectors are numismatists. It is widely believed that numismatics began during the early European Renaissance, as part of an effort to re-discover all things classical.

The first English usage of the word “numismatics” was in 1829, stemming from the word adjective numismatic, which translates to "of coins”, and stemmed from the French word _numismatiques_, which itself derived from the Latin stem _numismat_.

Numismatists study the physical technology and historical context of coinage and money. Coins or other tokens that are rare or unique or that have some special history that can be documented are considered most interesting for study and valuable as collectibles. Specimens that show errors from their production process of striking the coins or printing the notes are especially notable.

## The Real Value of Collectible Currency

Rare currency can trade for much more than its face value or material worth due to its collectible qualities. Some 20th-century U.S. silver quarters, worth 25 cents, can sell for tens of thousands of dollars. 

Rather than spend these as money at their face value, collectors withdraw them from circulation to use as collectibles or [investments](https://www.investopedia.com/investing-in-rare-coins-5217604). This is similar to the operation of what economists call “[Gresham’s Law](https://www.investopedia.com/terms/g/greshams-law.asp)”, which states that under legal tender laws, bad (less valuable) money drives good (more valuable) money out of circulation in the market. In the case of rare and collectible coins or other monetary tokens, Gresham’s Law operates to an even greater extreme; the coins are not only withdrawn for circulation but actually cease to be money in an economic sense. 

## Leading Numismatic Societies and Their Impact

Many societies advance numismatic studies, like the [American Numismatic Society](http://numismatics.org/), founded in 1858 in New York to promote coin and currency appreciation. The society has since built a collection of more than 800,000 objects, the oldest dating back to 2000 BCE. The society's library holds over 100,000 books, documents, and artifacts on numismatics. Other numismatic organizations include:

*   Ancient Coins Collectors Guild
*   Archaeological Institute of America
*   [The Royal Canadian Numismatic Association](https://www.rcna.ca/)
*   The Czech Numismatic Society
*   International Numismatic Council
*   The Israel Numismatic Society
*   Oriental Numismatic Society
*   The Professional Numismatists Guild
*   The Royal Numismatic Society
*   The Numismatic Association of Australia
*   The Royal Numismatic Society of New Zealand

## The Rich History of Numismatics

Numismatics refers to the study and analysis of how people use money, as well as the collection of various types of money, coins, and other forms of consideration. The history of numismatics dates back centuries. However, coin collecting likely began at the time currency was invented.

Before the 19th century, nobles, religious elites, and rulers primarily enjoyed coin collecting as a personal hobby. Roman emperors, such as Caesar Augustus, collected coins to use in trade negotiations and as gifts.

> **Fast Fact**
>
> Guillaume Budé's "De Asse et Partibus Eius Libri Quing", written in the 16th century, was the first book on coins and the first to mention numismatics.

During the Renaissance era, there was a coin-collecting explosion, with Europeans fascinated with the materials and collections of prior civilizations. Of great interest were the coins with engraved images of animals, mythical gods and goddesses, and rulers. Italian scholar and poet, Francesco Petrarca, or Petrarch, is regarded as the first Renaissance collector of coins and as the catalyst to the numismatic boom of the 14th century.

Coin collecting grew popular over time, with organizations like the American Numismatic Society forming worldwide in the 1800s.

With the advent of the Internet, coin collecting has gained traction, attracting a broader audience of enthusiasts. Both new and experienced numismatists can access abundant information, tools, and communities online.  

## Diverse Fields Within Numismatics

Numismatics is divided into subfields, each focusing on different currency types, coins, and notes.

Notaphily, from Latin "nota" (paper money) and Greek "phily" (love), involves studying and collecting paper money. Notaphilists collect paper money, including banknotes.

Exonumia is the study and collection of coins, including tokens, medals, and other like objects. Exonumia is a combination of the Greek word _exo_, meaning "out of", and "nummus", meaning "coin." These items are used in place of currency or used to commemorate events and accomplishments. Exonumia is largely focused on commemorative military medals, awarded for contributions in war and military expeditions.

[Scripophily](https://www.investopedia.com/terms/s/scripophily.asp) is the study of securities, such as stocks and bond certificates. Scripophily combines the Greek word for love and the Greek word, "scrip", for writing. Scripophilists generally collect these instruments for their beauty, rarity, and historical significance. Because the issuance of stock certificates is largely an antiquated practice, this hobby is much harder to engage in than the others subfields.  

## Steps to Becoming a Numismatist

A numismatist, also known as a coin grader, is a professional who collects, analysis, and assesses the quality of collectible coins, currency, and other like objects. In the United States, prospective numismatists must join the American Numismatic Association (ANA), complete prescribed courses, and pass an exam.

The numismatist program includes six courses on different topics, ending with a 200-question exam. Once the requirements are fulfilled, the candidate receives a diploma confirming their proficiency in the field of numismatics.

Additional training may be needed to solidify the knowledge and training. The ANA and other professional organizations provide additional tools and resources.  

## Fascinating Numismatic Facts

*   Florence, Italy, was the first world city to mint its own gold coins, in the year 1252.
*   While many people now collect old coins, it was once a hobby only for royalty.
*   The United States Secret Service, established in 1865, was originally created to fight counterfeit money, during a time when one-third of federally issued paper money was thought to be fake. It wasn't until 1901 that the Secret Service shifted its responsibility to protecting the president, following the assassination of President William McKinley.

## What Is Numismatic Gold?

Numismatic gold refers to collectible gold coins that hold more value than the spot or current market price of gold. The increased value is largely due to rarity, age, and other factors.

## What Does Numismatic Value Mean?

Numismatic value is the value a seller receives for the sale of a collectible coin. This value is determined by the coin's quality, rarity, and demand.

## Who Has the Biggest Coin Collection?

The Smithsonian National Numismatic Collection is revered as the biggest coin collection in the United States and thought to be the largest in the world as well. It features about 1.6 million objects in its collection.

## The Bottom Line

Numismatics is the in-depth study of money and payment media, with a strong focus on coins, their rarity, physical traits, and historical importance. The field extends into subfields like notaphily (paper money), exonumia (tokens and medals), and scripophily (stock and bond certificates), each offering unique areas of study.

Becoming a numismatist typically requires specialized education and exams, underscoring the expertise needed to evaluate collectibles properly. Many coins and forms of currency hold value well beyond their face amount, driven by rarity and demand, making them both prized collectibles and investment assets.

With the support of organizations and associations worldwide, numismatics continues to foster a global community of researchers, collectors, and professionals dedicated to preserving and understanding monetary history.  

**_Correction—March 10, 2023:_** A previous version of this article incorrectly stated the quantity of objects in the Smithsonian's coin collection. It has 1.6 million objects, not 1.6 objects.

> **Article Sources**
>
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