What is numismatics?

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What is numismatics?

What is numismatics? Numismatics is the collection and study of coins, paper money, tokens, and medals. These are the most widely collected and studied numismatic materials. Other items are stock certificates, checks, and notes of financial obligations. What is the numismatic value? There are three common ways to value a coin – by its face value, its intrinsic value and its numismatic value. The face value is the dollar amount stated on the coin. The intrinsic value is the price the precious metal content of the coin. A one-ounce silver coin is worth its weight in silver. Silver is currently trading at $27.60 per ounce, so the intrinsic value of a one-ounce silver coin would be roughly $27.60. The numismatic value is the: Date, rarity, condition, mint mark and provenance of the coin. Ultimately the numismatic collectible value is what you are willing to pay for the coin on any given day and what the seller is willing to accept. A collector paid a record high price of $3 million in 2012 to acquire a 1907 $20 Saint Gaudens high-relief lettered edge gold coin, one of only 20 known. That coin has a melt value of $1,900. In this example, the face value of the historic 1907 $20 Saint Gaudens is $20.00. The intrinsic value is $1,900 and the numismatic value is approximately $3 million. How do numismatic coins differ from bullion coins? Governments issue gold and silver bullion coins as an attractive, convenient way to invest in gold and silver. Bullion coins sell for a small premium of 5% -$17% above the price of their gold or silver content on any given day. Premiums are dependent on the diameter and net weight of the coin. Large one- ounce gold coins have a lower premium than smaller 1/10 ounce coins. The future value of bullion coins is based solely on their gold or silver content on the day you want to sell them. Numismatic coins are collectibles and their precious metals content, if any at all, is only a tiny factor in measuring the value of the coin. The numismatic value is the: Date, rarity, condition, mint mark and provenance of the coin.

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