Numismatic Gold Coins Historical Significance
Numismatic gold coins often holding some historical significance. They are collector’s items. Their aesthetic value and historical background are what paratially determine the price of these rare coins, unlike gold bullion, the price of which is determined by the pure gold content. Another factor that greatly influences the price of these rare coins is their level of preservation. However, one does not need to be a professional coin collector to acquire these rare gold coins. Also, due to their status as collectables, they have been excluded from government confiscations in the past, whereas gold bullion was not.
After the Federal Reserve announced the monetary stimulus plan on November 4, 2010, to give a boost to the economy, the price of US bullion surged to a high of above $1,380 per ounce. This period saw investors opting for more gold bullion than numismatic gold coins. However, numismatic coins are still in demand and command a high value in the market. Some of these numismatic coins have been sold at high prices at auctions. The numismatic gold coins that were sold at the Whitman Coin and Collectibles Baltimore Expo in November 2010 realized about $11.6 million. In 2002, the 1933 $20 Double Eagle, which is among the most well known numismatic gold coins in the US, was bought at Sotheby’s by a private collector at a price of over $7 million.
Top Five Tips for Numismatic Gold Coin Buyers and Sellers
Here are some tips that you may consider when buying or selling numismatic gold coins:
- Find out whether the numismatic value of the coins you are buying or selling is beyond the “melt” value or the precious metal content in the coin. Coins that have numismatic value will usually command a high value above the melt value of the coin.
- Identify a safe place of storage for your numismatic gold coin, such as a home safe or a safety deposit box, before you make the purchase. Usually rare coins and precious metal dealers may arrange for storage of these coins with some independent storage facility, but it is best to take posession yourself.
- Pay a lot of attention to the coin dealer’s risk and disclosure information, before you buy or sell your coin. Look for other coin dealers if the one you are considering does not provide you with the necessary written disclosures.
- When considering the sale of numismatic coins, you should have the coins graded by some reputed coin grading service. The Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) are among the best options you have to get your coins graded. At ITM Trading our coins are already graded by these two services before they arrive to you.
- When choosing your coin dealer, find out how long he has been in this business. Also, determine the rating of the company by consulting organizations like the Better Business Bureau.
Guide to Popular Numismatic Gold Coins
Here are some of the most popular numismatic gold coins:
- Draped Bust Half Cents (1800-1808)
- Flying Eagle Cents (1856-1858)
- Indian Cents (1859-1909)
- Liberty Head Five Cents (1883-1913)
- Early Half Dimes (1792-1837)
- Roosevelt Dimes (1946-date)
- Liberty Seated Quarters (1838-1891)
- Washington Quarters (1932-1998)
- Gobretch Dollars (1836-1839)
- Morgan Dollars (1878-1921)
- Peace Dollars (1921-1935)
- Liberty Head $2.50 (1840-1907)
- Capped Bust $5 (1807-1834)
- Indian Head $5 (1908-1929)
- Draped Bust $10 (1795-1804)
- Liberty Head $10 (1838-1907)
- Indian Head $10 (1907-1933)
- Liberty Head $20 (1850-1907)
- St Gaudens $20 (1907-1933)
The reduction in the price of numismatic gold coins circulated by the US gold mint certainly is good news for people who are considering acquiring them. Unlike the forex and stock markets, which depend greatly on the current market trends, the market for gold depends on the supply and demand of the metal. The demand for this precious metal, despite its elevated prices, is most likely to remain strong, according to the World Gold Council.