Numismatists coin a new phase in valuable collections

MUMBAI: Kishore Jhunjhunwalla, 73, had to wait nearly four decades before he could lay his hands on a British India `twincurrency coin,' specially minted to pay World War II soldiers of the allied forces. This King George VI coin was issued in two currencies--it was worth a US dollar and two-and-a-half Indian rupees at the same time -as it was meant to be given to both Indian and foreign soldiers.

“But soldiers did not accept these coins, it is assumed... The British were forced to take back these coins, and in a few years it became very rare piece among collectors,“ said Jhunjhunwalla, who has been a coin collector for more than six decades.

Jhunjhunwalla managed to get the prized coin in 1995, when he found a willing seller for Rs 50,000. Four years later, another collector persuaded Jhunjhunwalla to sell the coin for Rs 4 lakh. “You'll not get that coin now even if you pay Rs 60 lakh for it,“ he said a trifle wistfully.

While there is no official price reckoner for rare coins, Jhunjhunwalla may not be exaggera ting the 15-fold increase in price of the twin-currency coin. Prices of rare and antique currencies, both coins and notes, have surged manifold over the past few years.

Take, for instance, a 1939 onerupee silver coin, catalogued by numismatists as India's last `pure silver' coin, which was traded among mid-range collec tors for about Rs 7,000 per piece in 2007. That's now being sold at prices in excess of Rs 4 lakh. A British India Victoria Gold Mohur, carrying a price tag of Rs 35,000 in 2007, is being bid at auctions at over Rs 2 lakh. The price of a William IV Two Mohur set has zoomed to Rs 2.12 lakh from Rs 2 lakh eight years ago. And you don't need to go that far back: The once-ubiquitous one-rupee note, bearing the last series (print) date of 1994, is now being sold at Rs 6-7 per piece. (See chart) “It's a scarcity-driven business,“ said Girish Veera, owner of Oswal Auctions. “Collectors and coin auctions have gone up by a good measure since 2007. Higher demand for rare coins is driving up prices of rare coins.“

A larger number of auctions is also among the reasons for this unprecedented rise in coin prices. According to top auc tioneers, the first set of large scale coin auctions, held in 2007, witnessed a sale of over 2,500 rare coins. This has gone up to more than 25 auctions ­ selling over 30,000 rare coins ­ in 2015.

“We're finding more collectors now,“ said Farokh Todywalla of Todywalla Auctions, India's largest coin auctioneer by volume. “Earlier, there were a lot of government-imposed controls...gold control, excise control etc...Laws are friendlier now."

The auctions are well-attended by collectors and hobbyists, he said. “Over 2,000 patrons register to participate in our online auctions,“ Todywalla said. “In terms of sales, more coins are sold in the Rs 3,000 to Rs 20,000 price range. We also get high-value buyers for our gold mohurs and other special coins." A collector bought a rare Mughal-era zodiacal mohur for more than Rs 1.4 crore at a Todywalla auction a few months ago. That buyer can typically expect to pay service tax, value added tax and a `hammer commission' of about 10-12% to the auctioneer.

But it's not just the super rich who're into collecting currency.Some are not just collectors or hobbyists, they're looking for something that will appreciate in value over the years. “There are buyers across economic strata.There are also people who buy rare coins as an investment,“ said Rajenden Maru, CEO of Marudhar Arts, a Bangalorebased auctioneer. “Coin collection is the only hobby that pays back... If you keep good quality coins, you'll fetch good price for it 10-15 years later.“

According to Bimal Trivedi, a numismatist at the online Mintage World museum, the rarity of a coin depends on many factors. Coins issued by long-reigning emperors and in the name of women (Razia Sultan, Noorjehan, Naganika) are considered rare by collectors. Coins with unusual shapes, such as octagonal ones issued by Shahs of Malwa, and those issued in momentous years are also coveted by many. Top-grade antique coins (with deep-strike, on-centre imprints) command a value.

Supply is set to increase, said one expert as people take a look at possessions long forgotten.

“India has a long history of coins and currencies... There are coins locked in attics and old trunks of people, waiting to be found and identified,“ said Sushil Agarwal, CMD of Mintage World. “The supply of rare coins will increase once people realise the value of their holdings.“

While collectors are hopeful of hitting richer treasure troves in the years to come, there are concerns over widespread circulation of forged coins and notes. New collectors are advised to exercise caution while buying rare coins on portals or through unregistered sellers. As the saying goes, a collector never finds a rare coin; it's always a rare coin that finds a good collector.