There’s a good market for rare coins in India, and for serious collectors, auctions present an opportunity to source items that are not available elsewhere.

Indeed, numismatics is all about coins acquiring a value that is much higher than the monetary value conferred on them by law. And there’s an underlying promise of a handsome return on your investment if you buy the right coins and the market is right.

“It’s a great investment. We have seen a steady growth over the last 12-14 years. We’ve been seeing that some coins tend to double every three and a half to four years,” says Malcolm Toddywala of Toddywala Auctions, one of the pioneers in the auction market for coins in India.

Collector value But you can’t expect high returns on all coins. Auctioneers say that it is a misconception that all old coins are valuable. Like any other market, value of a collectible item soars if it is in short supply.

Rajender Maru, Director of Marudhar Arts, a Bangalore-based auction house that also sells numismatic items, cites the example of coins issued by Emperor Jehangir in the Mughal period.

“These coins are filled in the classical way; he had a lot of respect for the Hindu religion, so he issued a set of 12 zodiac coins. These silver coins are valued at ₹3-10 lakh. If they are gold, they fetch ₹50 lakh to ₹1.25 crore.”

Some of the most valuable Indian coins hail from the Sultanate to British India Empire period. “These coins are very expensive. In our upcoming auction, we are offering 25 coins that are valued at more than ₹5 lakh each.”

Rarity apart, the value also depends on the condition of the coin. Maru gives the example of the Scorpio zodiac coins issued by Jehangir.

“If the condition is poor, they are worth ₹1 lakh. But if they are fine, the price is ₹6 lakh, while an extra fine specimen commands ₹8 lakh-plus. If the coins are not in circulation, they can fetch a price of ₹15-20 lakh.”

Toddywala cites the William Double Mohur and the Krishna Devaraya Two Pagodas of Lord Balaji (Tirupati), as sought-after coins priced at over ₹10 lakh.

The most valuable Indian coins today, according to Maru, are not in India anymore. One is a four-gram gold coin featuring the images of Rama and Sita issued by Emperor Akbar after he married Jodha, only two of which exist today. “One is held by a collector in New York and another is in a museum in Vienna. When sold, these attracted a price of ₹2 crore,” he exclaims. Another was a gift offered by Emperor Jahangir to a Saudi Arabian king. That was sold in 1988 in London for a whopping ₹80 crore.

Elaborating on market mechanics, Amit Surana, an avid collector and Partner at Mumbai-based Surana Art, a gallery specialised in numismatic items, says: “It has a very good return, but it is dependant on how well the economy is doing — stock market, bullion, etc. When cash flow is on the higher side, people will invest more, and when it is not there, people don’t participate,” adds Surana.

Auction advantage Though coins can be acquired through private deals between collectors, public auctions are emerging as a safe route for collectors. Auction houses charge a hammer commission, service tax and VAT and the transaction is transparent.

What’s the advantage of acquiring coins through an auction house instead of at a store? According to Maru, it’s the promise that the article you are purchasing is genuine.

With an auctioneer, a collector gets the correct description and accurate images of the item; if the coin is doubtful or fake, it has to be withdrawn.

In this regard, Maru warns that people do get gypped in private deals.

“Suppose I’m offering a coin. You don’t know anything about the market. The coin cost is ₹10,000. I make up a nonsense story and sell it for ₹2 lakh. After some time, you find out the real value of the coin. When I come back for resale, I’ll say I’ve not sold it to you.”

Auction house licences, in contrast, are not easy to obtain. “I got my licence after 5 years, 11 months and 7 days. There were checks by immigration authorities, the customs department, civil department, the CBI, and the local police station that I’ve not done any crime, have not defaulted, have no tax dues,” says Maru. Auctions also help in price discovery. So how do you ensure that you don’t overbid when participating in a coin auction?

The collector Surana says, “The best thing to do is visit all the auctioneers who have expert panels and can give you an opinion on the item. You can also visit an exhibition where many numismatists are participating so that you get the best information related to the items.”

How to participate Visiting a coin auction doesn’t cost anything. There are a number of auctions in India and you can register with them, to participate.

“There’s no difficulty in participating. You can view an auction without paying or registering, but you need to have a reference to register for participation,” says Surana.

You don’t even have to go to an auction to submit a bid in the internet age. Toddywala Auctions, for instance, uploads catalogues on to the internet and people can bid online.

The online bids are collated and stopped two hours before the auction. Thereafter, people at the physical venue arrive and place their bids.

The entire process can be viewed real time too. “People can see how the current bid price is moving, similar to e-Bay auctions. The idea is for transparency as to what the current bid amount is,” says Toddywala.

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