Provident Metals explores the overlooked market and value of modern gold and silver numismatic coins
Provident Metals provides multiple ways to invest in physical bullion. Most investment precious metals are purchased as bullion, but many coin collectors choose to invest in numismatic coins. What is the difference between bullion and numismatic coins? In this article, we discuss this difference and take a closer look at why modern numismatic coins have a value proposition worth considering.
Numismatic coins are coins that are collected primarily for their rarity and historical significance. The market value of a numismatic coin is typically more than the face value of the coin and the value of the weight of precious metals the coin contains. Numismatic coins are usually coins that are no longer produced and not in circulation, but rather kept and sold by coin collectors.
Bullion, by definition, typically refers to gold (or other precious metals like silver or copper) bars or ingots. The term is also used, however, to loosely refer to coins and rounds. Bullion coins are coins minted by governments for the purposes of investment, while bullion rounds are minted by private mints for the same purpose. Bullion, whatever type it is, is considered valuable because of the content of its precious metal.
Modern Numismatic Coins
Modern Numismatic Coins, on the other hand, are coins or rounds that are minted in modern times. They may be minted primarily as investment rounds (bullion), but their intricate designs and their increased rarity as time goes on means that they have the potential to become valuable numismatically valuable.
Understanding the Value of Modern Numismatic Coins
What would be the benefit of buying modern numismatic coins compared to standard bullion or numismatic coins? Primarily they have a good value proposition. Their limited mintage increases their value in secondary markets like EBay or pawnshops.
For example, Provident Metals produced the Zombucks Walker 1oz silver round at a mintage of a little under 48,000. When these 48,000 coins sold out from the primary retailer, their value significantly increased on the secondary market, especially for collectors seeking to acquire the entire Zombucks series. So a round that might have sold for a relatively low price in 2013 is already opening at an auction price of $60 or more just three years later. At the point where the market value of the round has outpaced the value of the silver content, the coin is more of a modern numismatic coin than bullion.
Another benefit of modern numismatic coins is that you're able to collect these coins in bulk like bullion – something that isn't always possible with traditional numismatic coins. Often times you can buy these rounds in a mint tube of 20 or a monster box of 500. Furthermore, these modern numismatic coins may qualify for your precious metals IRA, which means that you can invest in both their bullion content and collectability.
At Provident Metals, you can find whatever kind of coin you're looking for, whether it's a modern numismatic coin like the 12 Labors of Hercules or our American Wildlife Series, or if you're looking for more traditional numismatic coins, such as the Mexican Peso.