This article is going to answer the question of what Numismatic Gold Coins is? You might have come across the word a few times if you are into gold and precious metals investing. Hopefully, this article will help you to get a clear understanding of the subject so you can make educated decisions when buying gold online or off-line moving forward.
Many times dealers can “hustle” you with words like “rare Numismatic Coins” for example, making you believe they are worth more than they in reality are. So, hopefully, this article can be helpful for you in your future gold investing endeavors.
Important – Knowledge:
Merit salespeople revealed how they steered buyers into collectible coins. The commission structure encouraged this, says Thomas. “Someone wants to buy $10,000 worth of gold. If I sell them bullion, I make $50. If I switch them to supposedly rare and more valuable numismatic coins, I make $1,000. It doesn’t take a genius to figure out where to lead customers.”
Buying numismatics can be particularly perilous. Dealer Jeff Garrett, of Mid-American Rare Coin Galleries in Lexington, Ky., and coauthor of the Encyclopedia of U.S. Gold Coins 1795-1933, says it’s like buying a racehorse — not something you do over the phone. “There’s a saying: ‘Buy the book before the coin.’ So go educate yourself,” he advises. “Buy a book about rare coins. You also need to find a mentor who’s really an expert in rare coins, and vet his credentials.”
-Source: aarp.com website
There are technical and specific terms that are usually used in various fields in life as well as niches and industries. This happens to be the case in the field of precious metals. One of the most common terms that are used in this field is the word “Numismatics”. Since this word can be used with a wide range of precious metals, we shall only narrow down to its application in the trade of gold coins.
We shall, therefore, take a closer look at what numismatic gold coins are. This will be accomplished through a systematic study in which we shall accumulate a number of facts about this type of gold coins.
Numismatics in Brief
Numismatics refers to the study and collection of all forms of both coin and paper money, tokens, and all related objects. The people who study or collect currencies in their various forms are known as numismatists. Whereas numismatists are often perceived as collectors of coins, this discipline also covers the broader study of money along with other payment media that are relied on, in the resolution of debt and the exchange of goods and services.
While most transactions in the past involved the exchange of goods for goods, in what was referred to as barter trade, or the exchange of goods for odd currencies such as animals and lambskins, the current world has switched to more inherent forms of payment that have a certain value. This value is known as the monetary value. In Numismatics, there is usually extra value that is attached to the standard form of payment, and that which is beyond the monetary value of that currency which is conferred by the law. This value is known as the numismatic value.
Numismatic coins are those coins that have a value that is higher than the face value attached to them. This extra value often arises from the historical information about these coins. Most of the coins that are perceived as being rare or ancient often have a higher value than what is suggested on them, or simply the face value. Coin collectors are usually on the look-out for numismatic coins, due to their rich history as well as their potential value.
What is Numismatic Gold Coins?
Numismatic gold coins usually trade differently from the gold they are made of. This means that in most cases, the fluctuations in the prices of gold do not have an impact on their numismatic value. The main factors that affect the value of numismatic gold coins are their rarity and the conditions of the coin at the time of the trade.
This is the reason most coin collectors purchase these coins as a form of long-term investment. The older the numismatic gold coin, the higher its value in most instances. Hoarding these coins over a long period of time is, therefore, a sound investment strategy.
In the past, some of the coins that were minted for circulation to the public ended up becoming genuine numismatic coins. A perfect example, in this case, is the Old US Gold coins, which have in the current world been perceived as being genuine numismatic gold coins. As much as these coins (US Gold Coins) happen to be the most widely collected coins of their kind, not all of them can be termed as genuine numismatic coins.
For you to authenticate a numismatic gold coin, you have to seek the services of a coin grading professional. Coin grading professionals are able to examine such gold coins to determine whether they are authentic, and are beyond that able to grade the same coins through a pre-established numerical rating system.
The grading of numismatic gold coins usually happens through a comparison approach, in which the coins in question are measured relative to how that coin should look like in a perfect condition. The grading system relies on a numerical system which classifies the numismatic coins as being ‘extremely fine’, ‘mint state’, amongst other states.
Once the numismatic gold coin has been graded, it is usually encapsulated. This basically refers to covering the coin with a plastic cover. This process is also known as slabbing, and a coin that has been encapsulated is known as a coin slab.
There are several coin grading service providers in the world. If a coin dealer wants to have their numismatic gold coins authenticated, they are required to apply for the membership of such bodies. These organizations usually do the grading and slabbing for you.
I hope you found this short article on Numismatic Gold Coins and that you now have a better understanding of what it is. Please, share your thoughts, opinions, or questions in the comment section below as I will be more than happy to answer them!
Much success to you!
founder of: Gold Retired