The fastest way to learn a valuable lesson is to jump into something without taking your time to make the right decision. Learn the difference between bullion, proof and numismatic coins!
Bullion coins are often referred to as “uncirculated”, which means exactly that – the coins have never been in circulation. Uncirculated coins will have very minor scuffs and imperfections, such as tiny scratches and edge knocks. There are also uncirculated “specimens”, which are of slightly better quality, but they too may have some small imperfections.
Numismatic coins are produced in limited quantities and/or for commemorative reasons. They carry a novelty factor and can make great gifts for friends and family. This is because the premiums they carry make the price of the coin way higher than the value of the metal they are made of. Yes, they may be beautiful and old, and carry a great story, but they are not worth the price that coin dealers will ask for them. A huge collector’s premium on numismatic coins defeats the purpose of investing in silver. Numismatic coins are a collector’s item and should be treated as such.
Proof coins were originally meant to be a kind of a pre-production sample. Think about it this way: a factory would produce a small number of samples for their customer to check, and a mint would produce proofs for a variety of purposes, such as approval by the monarch, the mintmaster and others. As coin collecting gained popularity, proofs were sometimes made to be sold to collectors. Nowadays proof coins are specially produced to a high standard of finish. Most countries produce these proof coins yearly, and to mark special occasions.
Some dealers with a large marketing budget will often try to up-sell customers making inquiries into buying metal for the first time by offering them numismatic coins. Their reasoning for buying precious metals this way is that the gold and silver coins they are offering will hold their value even if metal prices drop. Veldt Gold would never accuse anyone of lying to their customers. But these dealers are not giving customers all the information. There are several categories that affect the pricing of semi-numismatic and numismatic coins including mintage quantity, date, and likely survival number. These values vary drastically! When buying gold and silver remember to only buy the items that you understand. If someone else has to tell you that it is a good deal, you might be going on a ride. Semi-numismatic and numismatic coins are like baseball cards – if you know what you are doing, you can do quite well. Most people will likely only see the metal inside the coin like the player on the card. If you only want to buy gold or silver to hedge against inflation then look for getting the lower premium gold and silver products. Also be sure to keep in line with financial news and trends. Buy what is best for you, and NOT what is best for a high street coin dealer who is after a large profit! Questions? Contact us!
This content was originally published here.
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