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What Are Numismatic Coins? – Part One

Blog Feb 26, 2014

When answering this question, the first answer that comes to mind is “misunderstood”, and while this answer may be correct in some cases, I’m sure it is not the answer you are looking for, so I will delve a little deeper into the meaning of the term “numismatic coin” in hopes that I can sufficiently answer your question about numismatic coins in just a few paragraphs. Please read on.

A Numismatic Gold Coin Specifically, And Numismatic Coins In General
The term “numismatic” can refer to the study of anything used as historic currency or settlement of trade debt.  These studies may center around tulip bulbs, cowry shells, or in this particular case, coins that now carry the name numismatic coins, or if they are made of gold, numismatic gold coins.  Numismatic coins and numismatic gold coins have a very interesting commonality; they are worth more than either their face value, and/or the value of the material that the coin is made out of. For instance, a twenty dollar Liberty Double Eagle gold coin contains almost an ounce of pure gold, and you will never find these coins selling for twenty dollars. Also, even though the coin may contain very near an ounce of gold, it will trade at a premium over the spot price of one ounce of gold because of it’s historic value and the fact that these coins are limited in number and have not been produced for nearly a century. How much of a premium can depend on several factors, such as rarity, quality, and condition.

How Factors Determine The Value Of A Numismatic Coin Or A Numismatic Gold Coin
When determining the value of a numismatic gold coin like a twenty dollar Liberty gold coin, usually the most important factor is rarity. These coins were produced in varying numbers at a handful of U.S. Mints located across the United States. Some years more coins were created than others, and some U.S. Mints were busier than others. Also, when these gold coins were collected and subsequently melted by the U.S. Government in 1933, this action not only substantially reduced the number of coins that survived this process, but it also reduced the number of surviving coins, which are now seen as rare gold coins, produced by each U.S. Mint. For instance, the Carson City Mint in Nevada and the Dahlonega Mint in Georgia produced relatively few coins, and these U.S. Mints only produced coins during the 1800’s. These days, any coin that was produced at either of these U.S. Mints would be considered a numismatic coin, and they will have a value above and beyond both the value of the metal in the coin and the face value stamped on the coin. Whether or not you believe that old coins should be worth more than new coins, chances are you have at one point or another searched through your collection of change looking for an old or interesting rare coin, and my guess is that if you found one, you wondered what it is worth. For more information about how quality and condition can affect the value of a numismatic coin or a numismatic gold coin, please read part two of this article-blog.

Sources & References In This Article

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