Collecting silver and gold numismatic coins has become more and more popular over the past few decades. Numismatic coins trade at higher values than just the weight of their metal. The rarity, condition, and age of the coin can factor into the market value as well. They are different from silver or gold bullion which are minted solely for metal value and have never been used as legal currency. Numismatic coins are collected as a form of a hobby and also to accumulate wealth, and because of this are afforded certain advantages in the tax codes. You should always consult your tax professional for advice. Numismatic coins tend to increase in value as they age, as long as they are maintained in excellent condition. As they get older, their selling value exceeds far more than their gold standard face value.
Numismatic coins are also graded based on their authenticity and provenance. Two of the top companies that do the grading are the Numismatic Guaranty Corporation (NGC), and Professional Coin Grading Service (PCGS). These companies have multiple graders assign a grade based on the 1 – 70 Sheldon Scale, a final grade is determined and the coin is then placed in a clear protective case and marked and sealed along with the Date, Mint, Denomination, Type, and grade of the coin. If the coin has had a particularly colorful past or was once part of a great collection, this information may be included in the coin case as well. Purchasing coins graded by either of these companies through a reputable and established dealer is strongly suggested in order to insure you do receive the genuine article.
Numismatic coins started gaining popularity among collectors in the 1950s. The price of some of these coins skyrocketed in the late 70’s into the mid 1980’s. The price for numismatic gold coins surged upward again 1995 as gold prices had steadily increased. Nowadays, numismatic coins can be searched through the internet. Some buyers and sellers even make their transactions over the internet. The relatively small and definitely limited amounts of gold and silver numismatic pieces are just beginning to enter the online worldwide markets.
Sometimes numismatic coins that were originally acquired as a collection have turned out to provide very high financial returns when held over long periods of time. Because of this recognizable trend, many people today have also diversified some of their portfolio assets into tangible gold and silver coins. These coins are also considered a buffer in times of economic crisis because they are pure wealth and not tied to a particular bank or government. Gold and silver have been used as currency around the world for thousands of years and this is unlikely to stop anytime soon. Time and time again as banks, economies, and even governments crash – the value inherent to the currency they minted in gold and silver stands. This trait makes also precious metals very reliable in times of economic crisis.
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