Whichever way you look at it, acquisitions of Gold And Silver Numismatic Coins have grown dramatically since the 1950s. Have you been wondering what all the excitement surrounding numismatic gold coins is about? Here’s a simple guide for first timers.

What are Numismatic Coins?

Numismatic coins are rare gold or silver coins that sell for a significant premium or well above the value of the gold or silver they contain. Unlike gold or silver bullion coins that are mainly meant for investment purposes, numismatic coins are acquired as an investment, to pursue a hobby and for wealth creation. The value of bullion coins is determined by their gold or silver content, while the value of numismatic coins depends upon their grade or condition, quality, popularity, scarcity and age.

Grading of Gold and Silver Numismatic Coins

Numismatic coins are graded for their quality and authenticity. Professional Coin Grading Service (PCGS), American Coin Grading Service (ACGS) and Numismatic Guaranty Corporation (NGC) are among the leading coin-grading companies. Such grades or certifications protect buyers from unauthentic or fake numismatic coins. MS70 is the highest coin certification and numismatic coins with an MS70 grade are the most sought after.

Price Trends of Numismatic Coins

Numismatic coins began to feature in investors’ portfolios since the 1950s. Prices surged in 1979-1980, backed by the precious metals boom. A subsequent jump in prices was seen in 1995, which could be credited to the issuance of reports by grading services. These reports highlighted the scarcity of numismatic coins. With the growing popularity of the Internet, which made it easier for buyers and sellers to interact and transact, the market for numismatic coins received a fillip between 2000 and 2004. The global economic crisis of 2008-2009 also supported this market.

Advantages of Acquiring Gold and Silver Numismatic Coins

Numismatic coins are often purchased as collector’s items. They are also acquired by individuals to diversify their portfolio. Numismatic coins are bought as a hedge against economic upheavals. While paper investments decline in the face of economic distress, numismatic coins were popular during the Great Depression, the high inflation of the 1970s and the 2008-2009 sub-prime crisis. Such coins have high liquidity and are easily marketable, which adds to the popularity of gold and silver numismatic coins.