The Advantages Of Being A Young Numismatist

Two decades ago, I was the only coin dealer to serve on the American Numismatic Association Future of the Hobby Committee. During one of the meetings, I proposed the thesis that children who took an interest in collecting coins and currency would, on average, become more successful adults. To test this thesis, I proposed tracking educational achievement and career earnings.

When you become a numismatist, you practice several life skills, including managing your budget, learning to determine fair value, studying history, art, and geography, and being organized.

While all committee members judged this thesis almost certainly true, one member with experience measuring demographics explained that such a study would be too expensive and take too many decades to complete.

That may not be necessary. When R. W. Bradford founded Liberty Coins 53 years ago, over the next decade, he would ask people selling coin collections two questions. First, he would ask them if the sellers had become active numismatists and for how long. Second, he would ask them if they were selling the collection for a profit.

The different results were dramatic. Of people selling their collection who couldn’t be bothered to study much about their coins and currency, often where people purchased what was described as an investment portfolio, over 90% of them sold at a loss.

In contrast, people who had become serious coin and currency collectors and kept at it for at least five years ended up selling at a profit about 90% of the time.

If you are considering what gift might be appropriate for a child aged seven into their early teenage years, a starter kit of coins, currency, and related supplies just might end up rewarding them with long-term enjoyment, life skills, and financial gains.

Now, many young collectors start off sorting through the change in their own or their parents’ pockets, purses, and wallets. That lowers the opportunity cost if the interest doesn’t last. It then might be possible to simply spend the American coins and currency to get their money back out of the collection.

Another advantage of mentoring a young collector is the quality of time spent together, which creates memories. What’s not to like?

Last week’s numismatic trivia question.

Last week, I asked—Who is the only person to appear on US paper money who served in all three branches of the federal government—executive, judicial, and legislative? It was John Marshall. Marshall served in the US House of Representatives from 1799-1800. He resigned from Congress when President Adams appointed him to serve in the executive branch as Secretary of State, 1800-1801. The last month of his time as Secretary of State overlapped when President Adams appointed him to serve as the 4^th Chief Justice of the US Supreme Court, a position he held from 1801-1835. Marshall’s portrait appears on the Series 1890 and 1891 $20.00 Treasury Notes and the Series 1918 $500.00 Federal Reserve Note.

This week’s trivia question

Here is this week’s question. Which US President’s son served as Register of the Treasury for the Confederate States of America who, in this capacity, was a signer on some Confederate bonds and their interest coupons? Come back next week for the answer.

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He also received the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, the 2017 Exemplary Service Award, the 2012 Harry Forman National Dealer of the Year Award, and the 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild (including twice in 2020), the Professional Numismatists Guild, the Industry Council for Tangible Assets, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Mich., and writes “Liberty’s Outlook,” a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries, "Things You ‘Know’ That Just Aren’t So,” and “Important News You Need To Know,” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).

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