What You Should Know About Investing in Bullion vs. Numismatic Coins
The following article is created and or curated by the Orion Metal Exchange for the benefit of our followers. We seek to provide relevant precious metals, economic and geopolitical content that can impact your retirement and savings. If you are interested in learning about precious metals investing, call 1-800-559-0088, for a FREE investor kit.
Many people want to physically possess the metals they’re investing in. Purchasing bullion coins in gold or silver help investors take ownership of their investment.
Choosing between the American Eagle or Canadian Maple Leaf is of little significance because the intrinsic value of the metal remains the same.
You may pick a rare gold or silver coin that can make all the difference. This is because it adds numismatic value to the coin’s worth, which multiplies the value of the metal several times. This makes your investment more profitable and hence more secure.
Here’s what you should know more about bullion and numismatic coins.
What is Numismatic Value
Literally defined, numismatic translates into the ‘study of coins, paper money or medals’. Numismatic coins are those that are rare and have an exceedingly high external value.
There are many reasons why they’re high value items. It could be because of its historical affiliations, special design features, unusual minting or it’s the last of its kind. This is generally what makes them rare collectibles.
A good example would be the $20 St. Gaudens, High Relief Double Eagle gold coin produced by the Philadelphia Mint in 1907. It’s worth 500 times more than the amount of gold used in the single coin. With a numerical grade of 69, this coin sold at $700,000, according to the estimates of Numismatic Guaranty Corporation (NGC).
The mint grade condition of these coins greatly affects their market value. For example, the prices of St. Gaudens $20 gold coin varied from $25,500 with a grade of 62, $62,500 with a grade of 65, and $180,000 with a grade of 67.
Understanding the Market
Market corrections have historically pushed up the prices of precious metals. Even though the market price of metals like silver and gold have a considerable impact on the value of bullion coins, rare numismatic coins have the power to appreciate their value beyond the scope of the market.
The price of bullions largely depends on the melt value of the gold, platinum or silver used in manufacturing them. Whereas, the price of rare coins depends on rarity, auctioning, collector’s demand, and timing. Since the factors in the latter’s case are all external, you can see how numismatic coins are more than just a market commodity.
If you want to use numismatic value as your guiding force in deciding where to invest, make sure you’re selective with your decision. Even though rare coins offer great value, it’s best to purchase them only if you’re willing and able to hold off reselling for another decade. They can offer terrific prospects if you have the luxury of time.
If not—and you plan on cashing out your coins for immediate cash—it makes little sense investing in rare coins.
Gold and silver bullion coins may be a better alternative. This is also because bullion coins can add to your metal IRA but numismatic coins can’t. Assess your priorities before making any decision.
To learn more about investment opportunities in precious metal, dial 1-800-559-0088 right away.
We’re a precious metal investment company based in LA that offers the assurance of 50 years of experience and the security of giving the best financial advice.