In today’s post, we shall look at the best numismatic coin investments. Having a variety of coins in your collection can add beauty and value to your overall investment portfolio. You, however, need to know the best numismatic coins to purchase, in order to reap such benefits. Stay with me till the end of the article to find out the type of coins that are worth owning.
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Coin collectors have been perceived as stewards of these valuable treasures. The wise collectors also figure out ways to turn the coins into investments. They often do this by figuring out what gives the coins their value and do everything they can to leverage such knowledge to get top-dollar for their collections.
The two elements that give coins their value are:
- Metal content in the coins/ bullion value
- Numismatic value
Because most collectible coins are mainly created from precious metals such as gold and silver, they are bound to carry some intrinsic value. A coin with a higher gold or silver content may have a higher value than one with a lower gold or silver content ( note that the weight of the coin also affects the overall price). The bullion value of a coin is obtained through the following formula:
==>Bullion value = Weight of precious metal in a coin in ounces * spot price of the precious metal per ounce
The numismatic value of a coin is also referred to as a collector value. This factor mainly comes into play when rare or antique coins are being traded. It is much harder to determine the numismatic value than it is to determine the bullion value. Ultimately, the coin collector value is higher depending on factors such as:
- Buyer sentiment
- The number of coins in circulation/rarity.
- The condition of the coin – this is because coin collectors mainly purchase coins for their appeal and are highly likely to pay more money for coins that are in their uncirculated condition.
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Which are the best numismatic coin investments?
If you are just getting started with building a numismatic coin collection, then it is highly recommended for you to consider purchasing low-level investment coins such as Lincoln Pennies. You can, with time, progress to the rare and more valuable coins such as the Gold American Eagle coins.
You will also learn that coin collecting comes down to preference. Some numismatists may opt to collect extremely rare coins or common coins from different historical periods or years. It is all up to you, and this should set the grounds for you to have fun with the collection process.
1. Gold American Eagles
These are some of the most beautiful and valuable coins you can purchase. They are backed by the United States Congress and have a high gold content. The $50 version of the Gold American Eagles happens to be some of the most highly sought-after coins and is a great option for numismatists who are looking for coins with a higher bullion value or for the rarer coins.
The “Walking Lady Liberty” is depicted on the obverse of this coin, whereas on the reverse is an image of a family of bald eagles, which is symbolic of the American Family.
2. Lincoln Pennies
These coins are commonly known, widely circulated, and still perceived as currency today. There are several variations of the Lincoln Penny that coin collectors tend to prefer, including the double-stamped versions, or the VDB Lincoln Penny on which there are the three-letter initials of the person who designed it.
3. Washington quarters
Coin collectors who collect Washington Quarters mostly aim to have a coin from each of the 50 states in the collection. They also aim at purchasing a quarter of entire America the Beautiful series, which features a total of 56 national parks and landmarks from various states in the U.S. Some collectors also simply decide to purchase a Washington Quarter each year.
4. Mercury Dimes
Mercury Dimes were produced from 1916 to 1945. Contrary to the belief that the Mercury Dime features the Roman god Mercury, this coin was designed by Andrew Weinman, and it features the young Lady Liberty who has a winged Phrygian cap. Despite having Lady Liberty on it, the Mercury Dime name stuck.
This coin is as such not only well-known for its misinterpretation of the design, but also because of certain minting years that are highly sought after for their rarity, e.g. the Mercury Dimes minted in 1916. Only 264,000 coins were minted in that year, making the 1916 version of this coin a rarity.
5. Saint Gaudens Double Eagle
Augustus Saint-Gaudens designed both sides of this coin, which has found its place in the hearts of coin collectors as one of the most beautiful coins to own. This coin is, in some cases, used as currency, but its main use is in investment portfolios as investment bullion.
6. Indian Head Quarter Eagles
Theodore Roosevelt decreed these coins in 1908, and their design was placed on the U.S. $2.50 and $5 half eagles. These coins are pretty unique in the way their designed portion is recessed, and not raised, as is the case with most other coins. They happen to be one of the two US coins that utilize this special minting technique. The fact that they were also minted before 1933 makes them a double rarity.
7. Gold Indian Head
Most of the versions of this coin were minted through the placing of the Indian Head Eagle on a $10 gold piece, in the period lasting between 1907 and 1916. More gold Indian Heads were also minted irregularly from 1916 to 1933. The two sides of the Gold Indian Head were also designed by Augustus Saint-Gaudens, the designer behind the Saint Gaudens Double Eagle coin.
Just to make things clear, the Indian Head is not really an Indian Head but is simply a depiction of Lady Liberty adorning a Native American headdress. Just like the Mercury Dime, however, the name Gold Indian Head stuck and is used till today.
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Frequently asked questions on “Best numismatic coin investments”
1. What does the term numismatist mean?
This term refers to someone who studies money in its various forms. In most cases, numismatists specialize in particular areas such as coins, paper currency, as well as medals, and tokens. There are no set requirements for becoming a numismatist, save for the yearning for knowledge of anything that has to do with the money in its various forms.
2. Should I clean my coins to make them look more appealing?
NO! A coin will end up losing some of its value after being cleaned. The fact that most experienced numismatists can spot a cleaned coin easily means that you should avoid cleaning the coins in your collection. If anything, you should leave that to companies that offer professional cleaning services, since they can clean your coins without altering their value.
3. I would like to become a coin collector. Where do I begin?
The first thing you should know about coin collecting is that it should be perceived as a hobby. This ensures that you do not get bored along the way and that you have fun creating a collection. You should then decide whether you want to collect coins from your country or from other parts of the world. Afterward, you can begin educating yourself to become a more informed collector. Education is actually the key to deriving the most enjoyment from your hobby. Finally, you can join a local club or become a member of the American Numismatic Association.
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4. Where should I store my numismatic coin collection?
It is best to store your coins individually in storage containers or cases that are designed to prevent the coins from getting exposed to elements that degrade them. You can, for instance, purchase PVC-free mylar flips from a local American Numismatic Member Dealer. If you want to collect paper money, then you should use PVC-free, mylar sleeves. If you opt to store your collection in a deposit box, you should always inspect your collection after a few months to ensure that no problems are developing.
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That will be all for today’s post on the best numismatic coin investments. I hope you found it informative, and that it will help you get started on the path to coin collection in the best manner possible. If you have any questions pertaining to this post, drop them in the comments section and I will get back to you ASAP! If you are also planning on getting started with coin collecting right away, then you can tell us about it in the comments section as well- you might get someone to share your journey with 😉
I wish you well,
Eric, Investor and Team Member at Gold Retired!
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