What is Numismatics? (The Simple Guide)
01/09/2025Daniel Fisher
Numismatics isn’t a word many people will be familiar with. Perhaps you’ve heard in a pub quiz “What do you call a coin collector?”. But the term refers to a steadily growing group of people who are totally fascinated by money, but not with the common focus of simply accumulating the highest quantity.
More accurately, numismatics is the study of money in all its forms – coins, banknotes, and items connected with money such as tokens and medals. The term comes from the Greek nomisma (coin). Today, numismatics blends history, design, economics, and metallurgy, exploring how currency is made, used, and preserved.
A Numismatist may:
- Research the social and political stories behind coins and notes
- Analyse rarity, mintages, metal content, and die varieties
- Collect and catalogue items by period, theme, or country
- Appraise condition and value using grading standards
What is Numismatics?
Terminology frequently manages to add confusion to a subject, and the world of numismatics is no different. While you can be both a Coin Collector and a Numismatist, they are not identical.
- Coin Collecting – The hobby of acquiring coins for enjoyment, themes, or sets (e.g. Beatrix Potter 50p coins, Olympic 2012 50p set, or historic Sovereigns).
- Numismatics – The broader study of money, including minting techniques, history, economics, and design, often extending to tokens, medals, and paper money.
Think of Coin Collecting as what you hold; Numismatics as what you learn.
Key Areas of Numismatics
Numismatics is a broad and fascinating field that goes far beyond simply collecting coins. It covers every form of currency, from the coins we use in everyday transactions to historic banknotes, tokens, and even financial documents.
Each area offers its own insights into history, craftsmanship, and economics, giving collectors and researchers a wide range of specialisms to explore. Below, we outline the main branches of numismatics and what makes each unique.
1. Coins (Classical to Modern)
Coins are the backbone of numismatics. They vary widely by purpose, design, rarity, and composition. Below are the key categories that collectors and numismatists typically study:
Circulating Coins
Coins intended for everyday transactions. These include pennies, pounds, and other denominations produced in large quantities. Collectors often focus on key dates, low mintages, or withdrawn issues. For example, the UK’s 2009 Kew Gardens 50p is famous for its rarity in circulation.
Commemorative Coins
Special issues marking events, anniversaries, or cultural milestones. In the UK, the Royal Mint regularly releases commemoratives, such as the Beatrix Potter 50p series or the 2012 London Olympics coins. These appeal both to hobbyists and thematic collectors.
Within the world of gold coins, the Royal Mint’s gold £5 coins tend to be the most commonly used to celebrate certain events and history. Essentially a quintuple Sovereign coin, the £5 gold coins have featured designs commemorating diverse occasions such as royal weddings, the millennium, famous battles, and anniversaries of significant deaths.
Bullion Coins
Coins struck in precious metals such as gold, silver, or platinum, valued for their metal content and investment appeal. Famous examples of bullion coins include the Gold Sovereign, the Britannia, and internationally the American Eagle and Canadian Maple Leaf. Bullion coins often trade closer to the spot price of their underlying metal but may carry small premiums.
Physical Gold specialise in helping customers buy and sell bullion coins, whether you’re a numismatist or simply an investor. While they tend to appeal predominantly to investors due to their low premiums, that doesn’t mean they hold little interest to collectors and specialists. As well as the well-known standard mass-produced coins, more limited issue bullion coins exist such which are also tax-free for UK buyers. Some of the best examples are;
- Tudor Beasts and Queen’s Beasts
- Royal Arms
- James Bond
Uncirculated Coins
Coins that have not entered circulation and therefore show no signs of wear. Unlike proof coins, they are struck with standard dies, but they still retain sharp details and mint lustre. Uncirculated coins often serve as an entry point for new collectors.
Error Coins
Coins with minting mistakes such as double strikes, clipped planchets, or misalignments. These are highly collectible because they represent anomalies in otherwise tightly controlled processes. (See section on “Minting Errors” for more detail.)
Ancient Coins
Coins from classical civilisations, such as Ancient Greece, Rome, or Byzantium. These are valued not only for rarity but also for their historical significance, often depicting emperors, gods, and mythological themes.
Proof Coins
Proof coins are the highest-quality issues, struck with specially polished dies and blanks. They feature mirror-like backgrounds and frosted designs.
Proofs are usually sold in presentation cases with certificates of authenticity, often in very limited mintages. These are prized for their artistry and rarity.
Medieval and Early Modern Coins
Coins from the Middle Ages through the 18th century. This includes hammered coins, early milled issues, and regional currencies. Collectors study their minting techniques, inscriptions, and role in historical trade.
Modern Collectible Issues
Coins from the 19th century onwards, often machine-struck and widely available, but with special interest in low-mintage examples, design changes, or limited series. For example, Victorian pennies, Edwardian shillings, or George V Sovereigns.
What is Coin Alignment?
Coin alignment describes the orientation of a coin’s obverse and reverse designs. – Coin Orientation (used in the UK and US): flip vertically and the reverse is upside down. – Medal Orientation (used in many European countries): flip vertically and both sides are upright. This is an important aspect for authentication and understanding minting standards.
2. Notaphily (Banknotes)
Notaphily is the collecting and study of paper and polymer banknotes. It appeals to collectors who enjoy the artwork, history, and security features that evolve across generations. Some focus on historic issues like hyperinflation notes from the Weimar Republic, while others collect modern polymer notes showcasing advanced anti-counterfeiting designs.
Collectors often look for:
- Low serial numbers or replacement/star notes
- Misprints or printing errors, which can become valuable rarities
- Commemorative banknotes, such as those issued for royal anniversaries or national events
- Obsolete currencies, such as pre-euro European banknotes
Notaphily bridges art, politics, and economics, offering insights into how nations represent identity and trust through money.
3. Exonumia (Beyond Official Money)
Exonumia refers to items similar to coins but not issued as official currency. This wide field includes tokens, medals, badges, and even toy money. Because exonumia often reflects local culture, it provides a grassroots view of social and economic history.
Examples include:
- Trade tokens – once used in shops, pubs, and local businesses as credit
- Gaming and transport tokens – from arcades, casinos, and underground systems
- Commemorative medals – military service medals, coronation medals, and civic awards
- Advertising pieces – tokens or medals issued by companies as marketing tools
Exonumia is especially attractive because many items are inexpensive and carry strong historical or personal stories, making it accessible to new collectors.
4. Scripophily (Historic Financial Documents)
Scripophily is the study and collecting of share and bond certificates. Beyond their financial meaning, these certificates are admired for their intricate engravings, calligraphy, and historic signatures. Collectors may focus on industries such as railways, mining, or banking, or on regions like colonial companies or pre-revolutionary Russia.
Scripophily holds appeal for both historians and investors:
- Certificates may feature famous names (e.g., original company founders or directors)
- Rare issues with limited circulation can become highly valuable
- Artwork on older bonds often includes allegorical figures, elaborate borders, and watermarks
As financial systems move to digital records, physical certificates are becoming rarer, increasing their collectible value and importance for preserving economic history.
Read our insight into Gold vs Bond Investment.
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Which Coins Are Worth Collecting?
The best starting point in choosing coins to collect is to understand your own objectives and interests. If you have a passion for old coins, there’s little satisfaction in collecting the latest limited issue coins just because you think its value may rise. Combining your own passions with a strategy for selecting the best coins within your desired categories is the optimum approach to numismatics.
Not every coin is worth adding to a collection. While all coins tell a story, certain types stand out for their rarity, beauty, historic value, or precious metal content.
For collectors and investors alike, choosing the right coins is about more than aesthetics – it’s about understanding which issues hold long-term appeal and potential value. Below are some of the most popular and rewarding categories of coins to collect.
1. Royal Mint Commemoratives
The Royal Mint regularly issues commemorative coins celebrating historic events, cultural icons, and royal milestones. These coins appeal to both casual collectors and dedicated numismatists. Royal Mint coins appeal as you’re guaranteed beautifully crafted pieces due to the mint’s long track record and experience. Often, they are packaged in stunning presentation boxes with supporting literature.
- Examples include the Beatrix Potter 50p series, the London 2012 Olympic coins, and the Platinum Jubilee issues.
- Many are issued in both circulating and proof versions, with the latter often sold in limited-edition packaging.
- Some commemoratives – like the 2009 Kew Gardens 50p – become famous for their rarity in circulation.
2. Limited Edition Issues
Coins with strictly limited mintages are often highly desirable. Their scarcity creates competition among collectors, driving premiums higher over time.
- Limited edition runs may feature unusual metals, such as a gold version of a normally silver coin.
- Special thematic releases – for example, Star Wars silver coins or the Landmarks of Britain series – often gain worldwide attention.
- Collectors look for official certificates of authenticity to confirm genuine limited releases.
3. Bullion Coins
Bullion coins, such as the Gold Sovereign and Britannia, combine investment in precious metals with collectability.
- They are valued primarily for their metal content but often carry extra premium due to tradition, design, or rarity.
- Collectors focus on coins with consistent demand, making them easier to sell in the future.
- Popular international examples include the American Eagle, South African Krugerrand, and Canadian Maple Leaf.
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View products4. Minting Error Coins
Error coins are among the most fascinating areas of collecting. Produced accidentally during minting, these coins can become highly prized.
Types of Minting Errors:
- Hub and Die Errors – doubled dies, missing designs, cracks, or chips.
- Planchet Errors – clipped blanks, wrong thickness, or incomplete coatings.
- Strike Errors – off-centre strikes, multiple strikes, or weak impressions.
Because error coins are unintentional and rare, they can command significant premiums – particularly when verified by grading services.
5. Key Date and Low Mintage Coins
Certain years – known as “key dates” – are especially valuable because production numbers were low.
- UK examples include the 1905 Half Crown and the 1933 Penny, one of the rarest British coins.
- Collectors often build “date runs” of specific denominations, seeking every year of issue and paying special attention to scarce dates.
6. Historically Significant Coins
Coins tied to major events or reigns often hold lasting importance.
- Coins minted for coronations, jubilees, or regime changes are especially sought after.
- Examples include coins from the reign of Queen Victoria, Edward VIII pattern coins, and wartime emergency issues.
- These coins combine historic storytelling with tangible collectability.
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How to Start in Numismatics (Step-by-Step)
Getting started in numismatics doesn’t have to be overwhelming. By following a structured approach, you can build a collection that is both enjoyable and potentially valuable over time.
1. Choose a Focus
Decide what excites you most about collecting. Passion and enjoyment should provide the catalyst for your new hobby. Some beginners are drawn to Royal Mint commemoratives, others prefer historic gold Sovereigns, while many enjoy the variety of banknotes or world coins. Focusing your collection helps avoid getting scattered and allows you to develop real expertise in a niche.
2. Learn the Basics
Take time to research and understand essential concepts like:
- Coin grading (Sheldon Scale from 1–70, or UK terms such as Fine, Extremely Fine, Uncirculated, Proof).
- Mintages (the number of coins produced – low mintages usually mean higher collectability).
- Metals and alloys (gold, silver, copper, nickel) and how they impact value.
- Authentication – learning to spot fakes and forgeries.
3. Set a Budget
Establish a realistic budget and stick to it. Entry-level collecting can be done for under £50 with circulated commemoratives, but serious collectors may spend hundreds or thousands on rare pieces. Remember also to budget for storage, grading fees, and insurance.
4. Buy from Reputable Dealers
Work with trusted coin dealers or official mints. Look for sellers who:
- Provide certificates of authenticity with collectible coins
- Are members of trade organisations such as the BNTA (British Numismatic Trade Association)
- Offer transparent grading and pricing
Online marketplaces can be tempting but always exercise caution to avoid counterfeits.
5. Record Everything
Keep a log of every coin you acquire. A simple spreadsheet works well or use specialist software. Record:
- Purchase price
- Seller/dealer
- Year, denomination, and mintage
- Condition/grade
- Notes about rarity or history
This not only organises your collection but helps track value over time.
6. Store Coins Correctly
Good storage protects both appearance and long-term value. Use:
- Protective capsules or albums (avoid PVC holders, which can damage coins)
- Gloves when handling proof or uncirculated coins
- A cool, dry, stable environment to prevent tarnishing
- A safe or deposit box for high-value items
7. Review Your Collection Annually
Once a year, assess your collection. Consider:
- Selling duplicates
- Upgrading lower-quality coins with higher-grade versions
- Expanding into related areas (e.g., from coins to banknotes or tokens)
- Revaluing for insurance purposes
Annual reviews also keep you motivated and ensure your collection continues to grow in quality and focus.
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Numismatics FAQs
What is Numismatics?
Numismatics is the study and collection of money, including coins, banknotes, tokens, and medals.
It explores the history, design, and cultural significance of currency, from ancient coins to modern commemoratives. Numismatics combines art, economics, and history, making it appealing to collectors, investors, and researchers alike.
Is Numismatics the same as coin collecting?
No. Coin collecting is the hobby of acquiring coins, while numismatics is the broader study of money, including coins, banknotes, tokens, and financial documents.
Collectors may focus only on building sets, whereas numismatists analyse minting processes, historical context, and social impact. You can be both a coin collector and a numismatist depending on your level of study and engagement.
What coins are worth collecting?
Coins worth collecting include Royal Mint commemoratives, limited edition issues, proof coins, bullion coins, key dates, and minting errors.
Factors such as rarity, condition, and demand determine long-term value. Collectors often prioritise coins with low mintages, historic importance, or unique features, as these tend to grow in desirability over time.
How do you grade a coin?
Coins are graded by condition using systems such as the Sheldon Scale (1–70) or descriptive terms like Fine, Extremely Fine, and Uncirculated.
Grading considers wear, strike quality, lustre, and overall eye appeal. Professional grading services can certify coins, providing assurance for buyers and helping preserve long-term value.
Are proof coins valuable?
Yes. Proof coins are struck with special polished dies to create a mirror-like finish.
They are typically issued in limited numbers and presented in cases with certificates of authenticity. Because of their superior quality, rarity, and demand among collectors, proof coins usually carry a higher premium than standard circulating issues.
Are minting error coins valuable?
Yes. Minting error coins can be highly valuable, depending on the type of error, its rarity, and the coin’s condition.
Errors such as off-centre strikes, doubled dies, or clipped planchets are especially sought after by collectors. Because they are produced unintentionally and often in very small numbers, demand for genuine error coins usually increases over time.
Should I clean coins?
No. Cleaning coins can damage their surfaces and reduce their value significantly.
Even gentle cleaning can scratch or alter a coin’s patina, which is often a key factor in determining authenticity and grade. Instead, coins should be left in their natural state and handled only with gloves or placed in protective holders to maintain their condition.
Need Help or Guidance?
Are you ready to start your collection? Speak to our team for guidance on building a balanced coin portfolio, authentication, and safe storage. Call 020 7060 9992 or email us today.
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