Are you new to the world of numismatics? According to the Merriam-Webster Dictionary, numismatics is “the study or act of collecting of coins, paper money, and medals.” If you are new to the numismatic community, you may be wondering what the difference is between numismatic coins and bullion coins. Numismatic coins are rare and collectible. Bullion coins are valued for their melt value in silver, gold, and other precious metals.
Numismatic coins are valuable due to historical value, year of mintage, location of mintage, special marks, such as the John Mercanti signature, amount of coins that were minted, and more. Numismatic coins are graded for condition, which also determines the coin's value. A higher graded coin costs more than a lower graded coin. Professionals of the numismatic community grade coins. The most well-known and prominent professional coin grading services are Numismatic Guaranty Community and Professional Coin Grading Service.
As opposed to numismatic coins, bullion coins are not valuable due to any of the several reasons mentioned above. Bullion coins are valued for their precious metal content. The price of bullion coins is the spot price of the precious metal, such as silver and gold, at the given time; bullion coins are valued for their melt value, which means the coin is the same price as if the coin(s) is melted into a bar.
The numismatic community continues to grow. Both numismatic and bullion coins are part of the coin industry. Whether you are purchasing a numismatic coin or a bullion coin, there is something out there for you. Consider both options when thinking about investing in coins.