Bullion & Collectible
To be more specific, let’s examine the differences and similarities of Bullion and Numismatic coins. Bullion is the investor’s choice for the "investor market". When investing in Bullion, the primary focus is always on the value of the metal-nothing more, nothing less. Unlike Numismatic coins, Bullion is more desirable to barter and trade with it because of the actual price of the metal. It also allows the investor to protect their portfolio against a sudden drop in stocks, bonds, and/or paper currency values. This is a great way to ease doubts of losing assets.
On the other hand, Numismatic coins are the "collectible market". Not only is value placed on the metal, but also on the rarity and condition of the coin. Most of these coins have been designed for special occasions or events such as the Chinese New Year or the 100th Anniversary of the Titanic. The mintage of these coins are typically low, which can fetch a pretty high price due to low supply-high demand (depending on the coin). Generally, numismatic coins are not used to barter or trade, but can easily build wealth over time. If you want or need to sell your coins, you can either take them to a specialty coin shop or sell at an online auction.
Below is an illustration of a bullion and collectible coins:
On the other hand, Numismatic coins are the "collectible market". Not only is value placed on the metal, but also on the rarity and condition of the coin. Most of these coins have been designed for special occasions or events such as the Chinese New Year or the 100th Anniversary of the Titanic. The mintage of these coins are typically low, which can fetch a pretty high price due to low supply-high demand (depending on the coin). Generally, numismatic coins are not used to barter or trade, but can easily build wealth over time. If you want or need to sell your coins, you can either take them to a specialty coin shop or sell at an online auction.
Below is an illustration of a bullion and collectible coins:
Past
2007 1 oz. Koala. The Inaugural year of Issue and there was only 137,768 that was minted. The price was $80 but today it's $149.
The 25th Anniversary Eagle Set. Only 100,000 were made and was sold out in 5 hours. Price was $299 but today it is worth over $600 to acquire this set.
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MS 69
A graded MS 69 price $169
Graded by NGC or PCGS for the MS 69 grade, the set is worth over $800
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MS 70
A graded MS 70 the price is over $200
Graded by NGC or PCGS for the MS 70 grade, the set is worth over $1200
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Having Bullion and Numismatic is not a “bad thing”. Remember: one can be collected as "intrinsic art" which could build wealth over time AND the other to protect against paper assets. Simply determine your goals and “why” you plan on buying precious metals.
I highly recommend that you get educated on these types of coins before you make your purchase. Personally, I suggest getting both: bullion (for business) and numismatic (for fun)! See more collectible coins and bullion here.
I highly recommend that you get educated on these types of coins before you make your purchase. Personally, I suggest getting both: bullion (for business) and numismatic (for fun)! See more collectible coins and bullion here.