(Just thought it interesting)!
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Dear friends,
For all of you who collect British India gold , or for that matter
British India silver and copper, the last two years must have been a
combination of agony and ecstasy. The price seems to be on a one way
trajectory, up, meaning the value of your holdings has increased
manifold . At the same time , in case you have an unfinished set you
have to cough more to complete it.
As I remember it all started about 2 years ago with one major American
dealer advising his clients to invest in quality British India gold in
one of his news letters. Though many of us , I certainly was, could
have been sceptical about the advisibility of putting money in a
commodity coin such as British India gold, the recent Baldwin's auction
and the auctions on ebay have clearly vindicated his stand.
Not a long time ago, British India gold mohur used to be a commodity
coin with prices ranging from Rs 12000 to Rs 15000 a piece in Zaveri
Bazar here. The three major Delhi dealers also used to sell these coins
in this price range. These coins used to be available in quantity . But
not any more. Now a days , even prudent Indian dealers who are there in
the trade for the last 15 years are asking exhorbiant prices. In the
recently concluded Mumbai Coin Society exhibition here in Mumbai one
deal of a set of Mohurs from 1862 onwards was struck at an average
price of Rs 65000 /- to Rs 70000/-a piece. And that too this was a
dealer to dealer transaction.
The price of quality silver and copper in this series has also touched
the sky. And that too , when quality copper and silver coins are very
much available.
Is it worthwhile to put such kind of money in this series ? Will the
market hold in the long term for these coins? Or are we wintessing a
boom-bust phase for these coins- an instance of irrational exuberance
as the economists say??? Though such kind of Tulip mania is not
uncommon in the American Numismatic market, it is certainly new for
Indian coins. Though there are instances of individual coins falling in
value due to discovery of hoards , a full series rising in price like
this is certainly a first, at least for me for sure.
Please give your views.
And , what is the reason for this stratospheric price rise? Could
hoarding be responsible?
regards
Manoranjan Mahapatra
Mumbai
