5 Facts about Numismatic Coins
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People have been using coins as a form of currency for millennia. Almost from the beginning, people started to preserve coins so that they would gain more value over time. The term “numismatic” includes the collection or study of coins, paper money, and medals. So numismatic coins are essentially coins that are collected. In current times, you can purchase these coins from reputable dealers like us at Swiss America.
Numismatic coins are different from other types of investment metals such as gold or silver bullion, which are sought after because of their value and their ability to create a premium for their metal value. Numismatic coins are an investment in a different sense, as they are typically held by collectors and become more valuable depending on their condition and rarity. Obtaining numismatic coins can be taken as seriously as the buyer likes, by collecting coins on a sliding scale from very low value to extremely rare and valuable.
Knowing a little bit about numismatic coins before you start to purchase and collect them can help you make the most educated decisions. Here are five facts about numismatic coins.
#1. There Are 3 Major Coin Categories
When it comes to numismatic coins, there are typically three categories they can be placed in. These categories help to decipher the value and grade of the coin. The grade of a coin is given based on the appearance and condition of the coin. Using the Sheldon Coin Grading Scale, it can range in number of value from 1 to 70, with 70 being the best. These three categories can help you determine the value of a coin before you purchase it.
The first of the three categories that numismatic coins fall into is called circulated coins. Circulated coins are typically not very valuable, as their grade falls in the range of 1 to 59. These coins are considered hobby level, and they are great for collectors who aren’t looking for monetary-valued coins.
The second category a coin can fall into is known as an uncirculated coin. These coins are graded “Mint State,” between 60 and 70, and they are never used in circulation, making them rarer and more valuable then circulated coins.
Lastly, there are proof coins, which are also graded 60 to 70. These categories of coins, however, include special mintage, using polished dies and planchets. They are considered to be the most valuable of numismatic coins.
#2. Not All Coins Are Created Equal
Though you may find many similarities between coins you come across, it’s good to know that all coins are not created equally. Just because a coin costs a lot doesn’t necessarily mean that it’s worth more. In addition to that, the same coin in worse condition isn’t worth the same as it would be in pristine condition. This is where coins differ from investment metals such as gold bullion, which usually keeps its value no matter the condition. The appearance of a coin matters greatly. Keeping that in mind while you’re searching for coins can help you to make more informed decisions.
#3. There Is a Difference Between “Sight-Seen” and “Sight-Unseen” Coins
If you’ve already begun your search into numismatic coins, you’ve probably heard terms like “sight-seen” and sight-unseen.” It’s a popular phrase in the world of numismatic coins and holds a lot of weight in the buying process. Knowing the difference between the two can save you from making a purchase you might regret later.
A coin that’s purchased “sight-seen” means that the buyer was able to view and inspect the coin before purchasing it. Sight-seen coins are typically more expensive, as they are in better condition. When you purchase a “sight-unseen” coin, its price is usually lower. This is due to the unknown quality of the coin, as dealers are not allowed to return the piece if they don’t like the look of the coin. This lower quality coin will often cost less, but it will also provide you with lower quality and a lower grade. If you place importance on the quality of your purchase and the quality of your coins, purchasing a sight-seen coin is the better decision.
#4. Buying From a Reputable Dealer Comes with Many Benefits
You can buy numismatic coins from a variety of places, but the quality of the coin and the customer service will vary. That’s why most people choose to buy from a reputable dealer that has years in the industry.
A good dealer will offer you a two-way market that offers a buy-back policy for you to consider. They will also make sure to sell you the coin and not just give you a quote for the coin, which allows you to trust your dealer and get what you’re hoping for.
Another upside of buying from a reputable dealer, such as Swiss America, is that we can honestly present you with the upsides and downsides of the coin you’re planning to purchase while explaining clearly the short-term versus the long-term positioning. A reputable dealer will provide you with peace of mind, which can leave you feeling confident when buying your numismatic coin.
#5. You Can Keep Up with Pricing On Your Own
When people purchase numismatic coins, they are often worried about whether the price they paid for their coins was a fair price. When you purchase your coins from a reputable dealer, you can feel safe knowing that you’re paying a fair price for the product you’re receiving. Still, you can find comfort in knowing that you can keep an eye on the general pricing of coins through the Coin Dealer Newsletter (CDN). The CDN, also known as the Greysheet, is a popular guide to pricing that has been publishing weekly reports on the coin market since 1963. It’s the standard that is accepted by most dealers, and it reflects the sight-seen prices for the current time. In addition to weekly reports, they also publish quarterly and monthly supplements with more specific details on individual coins. This is a great resource to have whether you’re a new or experienced numismatic coin collector, as it can keep you in the know about current value and pricing.