Best answer by Abhishek. Coin collecting is an activity that goes back to the time when coins were issued for the first time in trade. Only during the Middle Ages did people turn it into a hobby due to the historical significance and art work it provided.
Today, coin collecting is a hobby that lots of people enjoy. A collection of gold coins is perhaps the most expensive and precious collections that a person can have. The costliest gold coin that was ever bought cost around 8 million dollars. It was called the American 1933 Gold Eagle. It is evident why the hobby of collecting gold coins is referred to as the king’s hobby.
One of the earliest money forms were gold coins. Silver coins followed these. From 1838 to 1933, gold coins had been circulating in the States. The initial design was the bust of the Liberty Head. After this, the design changed to Saint Gaudens motifs and the Indian Head, which was used until the year 1933. This was followed by the Great Depression, which resulted in the recall of the gold coins, which is why it is difficult to find them today.
As these are not in circulation anymore, the price of these commodities are very high. Today, gold is used for various other items like jewellery and bars. People retain these as an investment.
The first gold coin that South Africa minted was called the Krugerrand in the year 1967. The coin stands mostly as a symbol and has no real face value. It is made up of an ounce of gold and it is usually purchased for the purpose of investment.
After this, many other countries started minting bullion coins. In 1970, Canada produced the Gold Maple Leaf and in 1981, Australia the Nugget. These coins boast of a 24 carat purity and so are far more popular than their South African counterpart.
Today, there is an increasing number of people who are investing in gold as there is a speculation that this demand will cause an increase in the market value. There are still others who prefer to use gold as an insurance in case their financial situation worsens. At one point of time, with the increase in paper money, the value of gold increased and this kept a balance between the value of money and gold. This standard came to an end in the year 1971, after which the government could produce more paper money without the subsequent increase in price of the gold.
As there is no place where gold coins are used for purchase of merchandise, coin collectors prefer to collect them to remember the time when it was once used.