Facts on Numismatic Coins

There has been a growing trend in the acquisition of numismatic coins, whether gold or silver types over the past 5 decades. Before you jump onto the bandwagon, a better understanding is necessary for the best performance.

The Purpose of Numismatic Coins

Numismatic gold or silver coins are rare special coins that are quite highly priced in terms of their value; for more than the price of the content of gold or silver in them. Many acquire numismatic gold or silver coins for the sole purpose of buying gold coins, as a hobby or for generating wealth. It is the grade, condition, popularity, availability, age and quality factors which determine the value of gold or silver numismatic coins.

Numismatic Coins Grading

A grade gives the value of any numismatic gold or silver coin by recognizing its quality and authenticity. There are many professional grading companies which grade numismatic coins such as PCGS, ACGS and NGC; their function is to protect potential buyers from fake or poor quality numismatic gold or silver coins. Currently, the numismatic MS70 fetches the highest certification which makes it the most desirable type of numismatic coin, although they are very rare and expensive.

Numismatic Coins Price Trends

Numismatic coins first came onto the investor’s radar in the 1950s when gold prices rose dramatically. There was another significant increase in the numismatic coins’ worth when grading services reported the scarcity and value of numismatic coins. Many traders used the Internet heavily to buy and sell numismatic coins in the 21st century; the recent global economic crisis during the years 2008 and 2009 further boosted the upward price trend of numismatic coins.

Benefits of having Numismatic Coins

There are many reasons an individual might want to indulge in acquiring numismatic coins.

It could be perceived as a collector’s item. There are not many of them in either gold or silver. Numismatic gold or silver coins can also be an alternative to paper assets in a portfolio. One is not limited to bullion or another portfolio such as stocks. Numismatic gold or silver coins can be used to hedge against possible future economic fluctuations as has been seen and proven during the times of the Great Depression in the 1930s or the recent sub-prime crisis in 2008/9. For many centuries, these intriguing metal pieces have outstood the test of time on their value compared to other assets. No matter what condition the economy is in, numismatic coins remain a wealth preservation tool. These special coins provide high liquidity that can be easily traded in today’s market when there is a need for quick funds. But it is a long-term asset that has the opportunity to bring maximum benefits to their owner.