Understanding the Role of Banks in Coin Collection
When we think about selling coins, our first thought often goes to banks. After all, banks deal with money daily — why wouldn’t they deal with old money too?
However, in South Africa, banks generally do not buy old coins. This is not just limited to old South African coins but includes foreign coins and commemorative items as well. Let's break down what major banks say and why they avoid such transactions:
1. Standard Bank
Standard Bank does not offer services for the purchase or evaluation of old coins. Their branches are not equipped or trained to assess the numismatic (collector’s) value of coins. While they accept valid currency for deposits and exchange, anything discontinued or collectible is not part of their mandate.
2. Absa Bank
Absa does not buy old coins either. As we explored in a previous article, Absa may refer clients to numismatic dealers or the South African Mint for more information. Their branches focus on modern banking services, and old coin collection falls outside their operations.
3. FNB (First National Bank)
FNB clearly states that it does not buy old coins for cash. Similar to other banks, they are not in the business of collectibles or appraisals. Their only concern with coins is circulating legal tender.
4. Nedbank
Like the other commercial banks, Nedbank doesn’t deal in buying old coins. If a customer presents old or foreign coins, they will typically be advised to visit a coin dealer or a pawn shop.
5. Capitec
Capitec is a digital-focused bank and has no facility for dealing with old or rare coins. They do not accept coins that are no longer in circulation and will not offer cash value for collectible items.
Why Don’t South African Banks Buy Old Coins?
There are a few practical reasons why banks in South Africa don’t deal with old or collectible coins:
1. Lack of Expertise
Coins have historical and collectible value that requires numismatic expertise to evaluate. Banks do not employ coin specialists who can assess rare or valuable coins.
2. Legal Tender Limitation
Banks are only required to deal with coins and notes that are considered legal tender by the South African Reserve Bank (SARB). Once a coin is demonetised or taken out of circulation, banks are not obliged to accept or exchange it.
3. Security and Fraud Risk
Old coins can be counterfeited or misrepresented, and banks do not want to risk engaging in transactions that require in-depth authentication.
Who Buys Old Coins in South Africa?
If banks don’t buy old coins, who does? Here are the most popular and effective options:
1. Registered Coin Dealers
Professional coin dealers specialize in buying and selling rare and old coins. Many of them operate physical shops in cities like Johannesburg, Cape Town, and Durban. They are trained to assess value based on rarity, demand, metal content, condition (grading), and historical importance.
Some well-known coin dealers in South Africa include:
- SA Coin
- City Coins
- The Scoin Shop
- ZA Gold Traders
These dealers can often provide cash offers or sell your coins on consignment.
2. Auction Houses
Auctioning rare coins can be a lucrative method if the item is particularly valuable. Reputable auction houses like Stephan Welz & Co., Strauss & Co., and Virtual Coin Show allow sellers to reach a larger audience of collectors.
3. Online Marketplaces
Websites such as:
- Bidorbuy
- Gumtree
- Facebook Marketplace
- OLX
…offer platforms to sell directly to interested buyers. However, the seller must be cautious about scams and should research the market value of their coins before selling.
4. Zarcoinshop
Zarcoinshop (zarcoinshop.blogspot.com) is a trusted educational platform that helps South Africans learn about the value of their old coins and banknotes. While Zarcoinshop doesn’t buy coins directly, it offers guides, values, and resources to help people connect with reputable dealers and collectors.
Whether you're trying to identify a 1923 farthing or the iconic 1892 ZAR Pond coin, Zarcoinshop provides researched, accurate information about coin history and market trends.
What Coins Are Worth the Most?
Some of the most valuable South African coins include:
- 1898 “Single 9” Kruger Pond – Sold for over R20 million.
- 1892 ZAR “Double Shaft” coins
- 1931 and 1939 Silver 3 Pence
- 1965 and 1966 Proof Sets
- Mandela R5 Coins (limited editions)
- 1979 Gold Krugerrands
These coins are in demand among collectors, both locally and internationally.
Can You Still Exchange Old Coins?
The South African Reserve Bank (SARB) may allow the exchange of old, demonetised coins under special conditions, but only for face value — not collector value. For example, if you have a pre-1990 5 cent coin, the SARB might exchange it if it's legal tender, but they will not consider historical or rarity value.
Conclusion
So, which bank in South Africa buys old coins? The answer is none. South African banks such as Absa, FNB, Standard Bank, Nedbank, and Capitec do not buy, evaluate, or trade in old coins.
If you're looking to sell your old coins, your best bet is to:
- Contact professional coin dealers.
- Use trusted auction houses.
- Explore platforms like Zarcoinshop to get educated.
- Engage safely on online marketplaces.
For more tips, guides, and current values of South African coins and banknotes, visit zarcoinshop.blogspot.com — your trusted source for numismatic knowledge in South Africa.