How to Invest in Numismatic Coins
Are you new to investing in silver and gold? Do you know the difference between numismatic and bullion? The difference between rounds and bars? The difference between spot and premium prices? If you don’t know where to start, you’ll need to understand the basics and the differences of the terms mentioned above.
Numismatic coins are collectible and rare. Bullion coins are valued for their melt value in silver and gold. Which should one invest in? Numismatic coins are valuable because their historical background, mint marks, design, year of mintage, and coin population. Bullion coins are only valuable for their precious metal content.
Bullion Coin Value
When investing in bullion, you’ll be looking at coins, bars, and rounds. As mentioned previously, bullion coin value comes from precious metal content. This means that the price is constantly changing based on what the market dictates. Bullion coins are struck by the mint; most can be used for legal tender. Bars are rectangular bars made entirely of precious metal such as silver or gold. Rounds are flat rounds that are also made of precious metal. Both bars and rounds are struck at private mints.
Spot Price vs. Premium Price
When purchasing precious metal, you’ll encounter spot price and premium price. Spot price is the price of the precious metal in that immediate time. Premium price refers to the price that includes production costs, such as fabrication and distribution, and potentially any numismatic value the item may have.
Finding a Reputable Coin Dealer
The most overlooked and most important aspect of investing in coins is finding a trustworthy, reputable dealer. While it is vital to become knowledgeable of the various aspects of the industry, it is also essential to find a dealer that can help guide you and get you coins at a reasonable price. A dealer that is looking out for your best interest and only calls every few months with legitimate coin investments is not an easy thing to come by. Unfortunately, there are various coin companies out there who are just looking to maximize their profit margins, seeing their customers as a number instead of as a person.
Contact Us Today!
If you have any questions about coins and investing, Certified Coin Consultants is here for you. Call (516) 218 – 2094 or visit our store at 8 S. Village Ave., Rockville Centre, NY.