- Posted in: IRA Solutions
Part of our commitment here at Global Monetary Reserve is education our client’s to help them make better investment decisions that will not only add value to their existing portfolios, but will be a source of pride or wonder. History is intimately connected with every Numismatic coin in the market, and can provide a wealth of value and personal interest for those interested. There are several factors that make a Numismatic coin valuable, and GMR has conveniently gathered them here as a helpful guide to making the perfect investment.
One of the most important factors that dictates the value of a coin is the condition, or grade of a coin. As per The Official Red Book: A Guide Book of United States Coin 2015, “Undamaged coins are worth more than bent, corroded, scratched, holed, nicked, stained, or mutilated ones…Unlike damage inflicted after striking, manufacturing defects do not always lessen values.” Two of the most reputable third-party grading companies are the Numismatic Guarantee Corporation (NGC) and the Professional Coin Grading Service (PCGS). Purchasing a coin graded from either of these companies is especially advantageous as they keep up to date price guides on most of the coins they grade. Below is a small snapshot of some of the information provided by both grading services.
Some designs are a part of history and can have major value in the Numismatic community. For example the Augustus Saint-Gaudens Liberty featured on the Double Eagle from 1908 until 1933 is considered one of the most beautiful coin designs in U.S. minting history. It made resurgence in 1986 when the original obverse design was featured on the American Gold Eagles. Variations in design can also add value to a coin, for example the 1842 Half Dollar featuring the Seated Liberty design has two variations: Medium Date, and Small Date. They were both minted in the same facility, but that small difference is enough to set the values apart. The Medium Date is valued at $1,800 for a MS-63 and the Small Date at $3,450 (according to the Red Book).
Another factor that is especially important is the date featured on the coin. In this case it is a significant indicator as to how rare the coin is in a set or series. Some language that may refer to a coin has having a high mintage date is “common date.” The term that refers to a more rare coin in terms of its date are “key date” coins.
Oftentimes value will be assigned to a coin that is from a desirable minting facility, or if the coin was from a minting facility that is no longer releasing coins. Currently the most prestigious minting facility in the country is the West Point Mint (W) in New York. Other minting facilities that still release coins today are the San Francisco Mint (S), the Philadelphia Mint (P), and the Denver Mint (D); minting facilities that no longer release coins are the Charlotte Mint (C- 1838-1861), the Carson City Mint (CC- 1870-1893), the Dahlonega Mint (D- 1838-1861), and the New Orleans Mint (O- 1838-1861).
In the End…It’s All About Rarity
The basic economic principle of “Supply vs. Demand” applies to the world of Numismatics. The rarer the coin, the more valuable and sought after it will be, while common coins are valued based off their precious metal content more so than for any other factor; of course if a coin is truly old, or has history attached to it, such as belonging to a now closed minting facility then the value will reflect that. In the end it will be up to you, the buyer, to decide where you’ll invest your money, and your time. Contact Global Monetary Reserve at 877-795-9585 today to learn more about Numismatics and investing in Precious Metals.