Gold And Silver Investment In The Numismatic World

Gold And Silver Investment In The Numismatic World
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The economy within which we exist today is often shaky at best. The uncertainty of commodities, futures and other investments can wreak havoc on an investors’ portfolio and raise stress levels to near unbearable levels. This ebb and flow of the markets has been occurring for hundreds of years and will likely continue to take place for many centuries to come. Throughout the periods of economic uncertainty one investment has held its value steadfast, precious metals and rare coins.

Since the evolution of monetary trade systems, precious metals like gold and silver have been used for exchange. For centuries these precious metals have been monetized in the form of rounds and coins that often far exceed their face value. In some instances these coins were minted for the explicit purpose of serving as bullion, but in many cases these coins were once used in general circulation, giving them an additional intrinsic value.

One of the biggest advantages to investing in rare coins is that there is a fixed amount available. Regardless of how high demand rises, supply will never change. There were a finite amount of Capped Bust half dollars minted in 1834; no matter how high demand rises another one will never be struck. This means that the value of a rare coin almost never decreases, in many cases the value grows at an exponential rate.

The price of these coins is determined by their numismatic or collectors value. These values are dictated by the coin market and can change on a daily basis. Numismatic value is an algorithm comprised of several tangible factors with a mix of personal opinion. Two coins of identical year, denomination, composition and mint origin can have dramatically different values. Cosmetic damage, mint mark, luster and toning can all play into a coins final numismatic value. Condition is highly subjective and often has the most impact on a coins value. A New Orleans 1895 Morgan Dollar in good condition can have a value of a few hundred dollars whereas the same coin in mint state (MS) grade can sell for upwards of $500,000.

An investor who wishes to pursue rare coins has a wide range of options. United States coins ranging from the early colonies up into the early twentieth century are a popular investment among many today. No denomination is excluded, there are several years of pennies that command prices on par with those of half and silver dollars. Foreign coins are not excluded from the market either. Coins from the empire of Great Britain and other European dynasties are growing in popularity and fetch prices similar to those of their American counterparts.

Many coins minted prior to the mid 1900’s are composed of precious metals like silver and gold. These coins not only have a numismatic vale attached to them, but the market value of their metal composition as well. The bullion value of these coins means that their market value is often exponentially greater than that of their face value. Bullion composition coins generally have face values ranging from a single dollar like those from the late 1800’s to twenty and fifty-dollar pieces that were seen well into the early twentieth century. Most of these bullion-based coins are found as one troy ounce pieces, but fractional pieces are not uncommon. Half ounce, quarter ounce, tenth ounce and even twentieth ounce gold coins can be found. Gold coins are almost always minted in .999 fine gold, meaning they’re 99.9% pure gold. Silver coins range from 10% to 99.9% with most investment pieces weighing in at 90% pure silver. Many of these gold and silver coins can reach six digit values that continue to increase on an annual basis.

Rare coins, regardless of their year and composition can be found for sale almost anywhere. Online auctions comprise a large portion of the market and have been increasing in popularity. The convenience and ease of purchase makes this a tempting route for investors, but the auction market is fraught with issues. Buying a rare coin is much like buying a car; you want to know who exactly it’s coming from, the history of it, damage, condition and its authenticity. The anonymity of online auctions makes it incredibly difficult to verify the state of a coin or the scruples of its seller.

The best option investors have when it comes to rare coins is to do business with a reputable and established numismatic company. These businesses exist for the sole purpose of collectors and investors. The staff of these numismatic businesses has decades of experience in every aspect of the coin world and are usually more than eager to share their knowledge. A company like Monaco Rare Coins is almost always willing to educate a potential buyer to help them better understand their purchase and growth potential of their investment.

Another benefit of doing business with an established coin dealer is the inventory at their disposal. Investors searching for high-end mint state coins often have few options when it comes time to make a purchase. Twenty dollar gold St. Gaudens coins are fairly common in the numismatic market, but in high end mint state they are exceedingly rare. The local coin shop or online auction forum likely have nothing appropriately priced, and private collectors will have nothing of that grade for sale. Higher end coin dealers like Monaco Rare Coins will often have several in stock and if not, they will be able to acquire one quickly through their channels.

Gold and silver coins have proven their worth as investments over centuries of trade and business. Though the metals market fluctuates on a daily basis, the value of gold and silver in coins remains relatively stable. Investing in rare coins is not only an exciting hobby, but it’s an opportunity for investors to have physical tangible assets. In a world of ever changing markets and uncertain futures there are few things more comforting to an uncertain investor than having total physical control over their assets.