A First Time Investor’s Guide to Numismatic Coins

Most people who’re looking to invest in precious metals either purchase silver and gold bars or bullion coins. Whether you buy Canadian Maple Leaf coin, a Philharmonic gold coin or an American Eagle coin – it makes little difference. The intrinsic value of the precious metal remains the same regardless of the form it takes.

However, if you invest in a precious metal coin that is rare, it has something more than an intrinsic value – it has a numismatic value, which can be significantly more than just the value of the precious metal there is in the coin.

What is Numismatic Value?

According to Merriam Webster, the meaning of the term numismatics is “the act or study of collecting medals, coins and paper money”. Coins that have a numismatic value are essentially coins that are valuable or rare coins that have a market value that far exceeds the nominal value of the precious metal content they have.

There’s a myriad of factors that can lead to a regular precious metal coin becoming a numismatic coin. It could be because the coin has historical significance, has special markings, or was minted in a unique manner. For instance, a $20 St. Gaudens High Relief Double Eagle gold coin produced in 1907 by the Philadelphia mint is worth hundreds of times more than the value of the precious metal content it has. According to the NGC (Numismatic Guaranty Corporation), the approximate market value of this rare coin in mint state with a numerical grade of 69 is an astonishing $700,000.

An Excellent Long Term Investment

If you’re buying rare precious metal coins for their high numismatic value, it’s advisable to be extremely selective with your purchases. Moreover, numismatic coins provide the best returns if you hold on to them for a period of ten years or more, which makes them a terrific long-term investment.

You can also invest in bullion coins and numismatic coins at the same time. However, it’s worth noting that you cannot use rare silver or gold coins in a precious metals IRA.

A precious metals investment company with more than 50 years of experience in the market, Orion Metal Exchange is your go-to silver buying stop. Whether you need an individual retirement account for silver investment or are simply looking to buy some, we’ve got you covered. Check out our free investment kit or get in touch with us for more information.

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