What Determines the Value of Numismatic Gold Coins

The 2011 Julia Grant First Spouse series of gold coins were released by the US Mint on June 23, 2011. These 24-karat gold coins form the second issue of a total of four issues of the First Spouse series in 2011 and the 19th since this series was first introduced in 2007. Julia Grant was the First Lady of the United States when Ulysses S. Grant served as the country’s eighteenth President, from 1869 to 1877. The numismatic gold coins honoring her are made from half ounce 99.99 percent fine gold, and are available at an opening price of $929 for the proof version and $916 for the uncirculated version.

Difference between Numismatic Gold Coins and Gold Bullion Coins

Numismatic gold coins are gold coins that can be worth much more than their weight in gold. This is because these coins are used as collectibles, which is why they are usually more expensive than gold bullion coins.

Unlike the numismatic coins, bullion coins have an impacted by the spot prices of gold only. On the other hand, unlike bullion coins, the price of numismatic coins is determined by its age, how scarce the coin as well as the bullion content. This also means that the coin’s history and what it has gone through till the point of current possession all add to its value.

How the Value of Numismatic Gold Coins are Determined

Here are some of the primary factors that determine the value of numismatic gold coins.

1. Scarcity – Rarer coins tend to be of higher value than more common ones, irrespective of their age. This essentially means that although a coin might have been minted by the Romans centuries ago, it might be valued at a lower price than one that has been minted in the early 20th century but is rarer.
2. Demand – This means that coins that are more in demand will be more highly valued than ones for which the demand is lower. Hence, there might be plenty of pieces available for a particular series of coins but their value might still be higher than a series that has less coins because the demand is higher for the former series. It has also been noticed that collectors tend to prefer to buy coins belonging to their own country.
3. Quality – Quality here does not stand only for its grade but also its appeal. Therefore, quality in this sense covers factors like luster, tone, strike, etc. So, while two coins could be of identical grades, they might be priced differently because of the difference in quality.
4. Grade – This is possibly the single most important element to be considered while determining the value. The grade of a coin depends on its condition. According to this measure, the value of a coin is determined by a standard scale used to evaluate its condition. Via this method, coin can be graded as Mint State, Good or Fine. Numerous grades fall within these 3 broad grades and help to assign a value to the coin.
5. Circulated versus uncirculated coins – The grade of a coin determines whether it was circulated or not. A circulated coin is likely to show the signs of wear and tear with repeated handling. This means that for circulated coins, the residual luster has to be evaluated, in terms of the sharpness of the design and other parameters. For instance, if a coin has been through the cleaning process, its value is likely to be lower. However, given the subjective nature of such assessments, a single coin could receive different grades from different experts.

Buying and selling numismatic coins or adding to your collection are things that need a lot of knowledge, skill and experience. Enlisting the help of an experienced professional like the representatives here at ITM Trading goes a long way in helping you build the right portfolio for you.