Understanding Numismatic Coins & Value
With more of the world switching to digital currencies and stock investments, it might seem like there’s no value in having physical assets like coins anymore, but this isn’t the case. Many people still prefer to invest in physical assets like precious metals. These can come in the form of bullion, bars, and coins, but coins have the unique advantage of getting their value from two distinct places—their precious metal content and numismatic grade.
As a result, many people collect coins not just for their own enjoyment but also for their numismatic value. If you are interested in learning more about numismatics and how you can invest in collectible coins, we recommend that you keep reading.
What Does Numismatic Mean?
This is often one of the first questions people have when discovering the world of numismatics. Numismatics refers to the study and collection of currency. This can include:
- Paper Money
- Other Coin-Like Objects
While some numismatists only seek to study coins as a hobby, it is essential to note that many of these collectibles are also associated with an appraisal and assigned value. A numismatic coin’s value is typically determined by the coin’s quality, rarity, and demand.
As a result, these coins typically have a value far exceeding their face values. For example, a rare silver dollar may only be worth $1 if spent as regular currency, but it could be worth thousands if sold to a collector.
What is a Numismatic Coin?
A numismatic coin isn’t the same as the spare change in your couch or pocket. Instead, they are special coins that come that typically have some historical significance or an element that makes them highly desirable to collectors. Some coins gain their numismatic status because of their:
- Mint Mark
- Historical Connection
- Mint Date
- Circulation and Production
- Current Condition
What is Numismatic Gold?
Now that you know the definition of the word, it’s easier to understand what numismatic gold is. The term specifically refers to coins made of gold, of course. What makes numismatic gold coins different from other gold currencies is that the numismatic value of these coins is much higher than the spot price of gold. Some examples of gold numismatic coins include:
- 1849 O Gold U.S. Dollar MS-64 NGC
- 1907 $20 St. Gaudens High Relief Double Eagle Gold Coin
- 1911 $5 Indian Head AU58 PCGS
What is Numismatic Silver?
Gold isn’t the only precious metal used to make numismatic coins. You can also find many collectible coins in silver. Much like numismatic gold coins, the silver coins have a higher value as a collector’s item than as a precious metal. This can be because of the percentage of precious metal content and the spot price. The following are some great examples of silver coins with a higher numismatic value:
- 1878 Morgan Silver Dollar
- 1921 Peace Silver Dollar
- 1942-P Jefferson Wartime Nickel
Are Numismatic Coins a Good Investment?
Even if you aren’t into studying coins and the history of different currencies, you don’t have to write off coin collecting altogether. Many people choose to collect these coins for investment purposes. Much like bullion and bars, these coins can be a great way to diversify your investments in physical assets. In fact, these collectibles are great ways to hedge against out-of-control inflation.
Another reason that coins are an excellent investment is that they only continue to become scarcer in the majority of circumstances. Could a chest full of rare coins show up one day and increase the supply? Of course, that chance is always there, but it’s highly unlikely. In most cases, a coin that is rare today will only become rarer as time goes on, and other similar coins get lost or damaged.
Want to know the best part?
You don’t have to spend thousands of dollars on starting your collection. The numismatic market is broad, and there are a variety of coins to fit every budget. Even a modest investment in a collector’s coin can eventually provide a great return if you hold onto it long enough.
Where to Buy Numismatic Coins
If you want to get into coin collecting, you’ll need to know more about where to shop. If you want to make money off your collection, you’ll also want to know where to sell numismatic coins. Regardless of whether you want to buy or sell, there are several ways you can do so. The following are just a few examples of places that buy and sell coins:
- Online Dealers: If you are looking for a particular coin, you may prefer to shop online. It will give you access to a world full of unique coins from different countries. It’s recommended that you only work with trusted dealers, however. There are plenty of scams to look out for on the internet.
- Pawn Shops: As you start to learn more about coins and what to look for, you may be able to shop for them in pawn shops or antique stores. These can be great opportunities to buy coins at lower prices.
- Coin Shows: Coin shows and expos are wonderful places for new numismatists. These gatherings give you the opportunity to learn more about coins and ask questions. You’ll also find a wide variety of beautiful collections to shop, and if you decide to sell, you’ll find plenty of buyers.
Learn More About Numismatic Coins
Are you interested in learning more about how you can dive into the world of numismatics? If so, you’ve found a great place to start. At International Precious metals, we take great pride in helping first-time buyers find the right piece for their collection or investment portfolio.
If you want to get started, don’t hesitate to reach out. You can give us a call to speak with a professional about your numismatic goals. Our agents are available 24/7 at our toll-free, so you can get in touch anytime. We also have an online chat representative for you to conveniently ask questions as they come!
If you’re interested in reading more about rare US coins, check out some of our other great posts including, ‘The Most Valuable Coins In US History’, ‘Guide To Coin Grading' and ‘Guide To Buying Gold’.