- Posted in: Numismatics (Rare Coins)
Investing in Numismatics is a numbers game, but perhaps not in the way you’re thinking. Collecting historic or rare coins is more than an investment in their bullion content, and depends more on just the amount you have.
Numismatic collections are valued, above all else, on the quality of the coins in the collection. There’s an entire industry dedicated to grading, and ensuring the quality of coins!! In this article we’ll be analyzing the traits you should be looking for in the coins you add to your Numismatic collection, and investment.
The condition of the coin you add to your collection is important! With that being said, coins in great condition are often higher priced than the same date, in lesser condition. Quality in Numismatics is the key detail in every collection. Coins in great condition are rare, those beat up, scratched, improperly cleaned coins don’t have the same value as a coin in MS (Mint State) or even AU (Almost Uncirculated) grades. In the long run, coins in better condition see a higher return overall.
Shown below is an 1879 Silver Dollar graded by the Numismatic Guarantee Corporation (NGC), the past year the MS65 has grown in value by 46%, and the MS64 has grown by 24%. This is just a small example, and when you make a purchase you should always consult price guides from the grading company, and we also recommend checking the third party price guide book, The Official Red Book: A Guide Book of United States Coins. All this info can be provided by our team, so feel free to contact us with any inquiries.
In Numismatics rarity is the name of the game when it comes to sought after coins in the market. It’s understood best when the economic principle “Supply vs. Demand” is applied to the situation. The fewer the coins, whether it be because of condition, mintage, or perhaps the label released by the grading company is limited edition—the rarer the coin the less it will appear on the market. When a rare coin appears on the market, it becomes a key piece in a collection.
One example of the rarity factor being a quality feature to look for, is the First Spouse Gold Coin series; which GMR is a huge fan of! The first coin released in the series was the Martha Washington First Spouse Gold Coin is valued by The Red Book at $800 for the Proof and Uncirculated version; but the not as well known Julia Tyler, has her First Spouse Gold Coin value at $1,700 for the Uncirculated, and $1,750 for the Proof version.
Collections increase in value if the coins can tell a story. That story is told by collecting Numismatic items that fit into a certain category such as: time period, precious metal, series, denomination…etc. It all comes down to the bargaining power you can have when you sell coins that belong to a set. Offering a prized coin in addition to other coins makes that coin appear far more superior than it would had it stood alone.
Consistency is another key element to consider when beginning your Numismatic collection. You want to be able to paint a picture of history with your collection—incorporating passion into your collection makes it more enjoyable for you!
In the end, choosing pieces to add to your collection/investment is up to you and your own personal preferences. GMR can be there for you every step of the way! Contact our Precious Metals experts at 877-795-9585 today for a free, personalised Investment plan—we’ve got some great options for your Numismatic collection!