To answer this question we must first define numismatic. Numismatic is defined by Wikipedia as the study or collection of currency, including coins, tokens, paper money, and related objects. The government defines numismatics as gold coins having a recognized special value to collectors. This is the definition that is important when acquiring gold coins for your portfolio. This definition tells you what is and what isn’t subject to confiscation, which brings us to the question in the title of this blog.
People in the industry sell certain coins under the name of semi-numismatic. They claim that these coins have some recognized collectible value (even though they are quite common) and therefore would be excluded from confiscation should it occur. It should be noted that no one knows for sure if they would actually be excluded if the American people are subjected to confiscation again. On the other hand, many would agree that graded rare coins again would be excluded. Semi-numismatic coins have high bullion content and are older coins. These types of coins are typically gold Swiss francs, British sovereigns and French francs. The gold content is close to a fifth of an ounce.
The reason that people prefer them is that they are more affordable than graded rare coins and they are smaller in size. You can pick up a gold Swiss franc for around $275-$300 today depending on the dealer. I personally don’t think that investors prefer them; they are just more affordable than an ounce of gold or a rare coin. They have not performed as well as graded $20 Liberties and $20 Saint Gaudens over the long-term, so to say that investors prefer them would be a false statement (if you agree that investors always want the best rate of return). These coins are more approachable to new investors in the gold market and therefore are sold as such.
I personally feel that it is important to establish your goals and objectives and acquire the right coins for your portfolio. If that means gold Swiss francs are a right fit then so be it. But don’t just buy them because they are more affordable or the sales person tells you to. These coins are very easy to check prices on so do your research. Some companies sell these coins for far more than what they are worth in order to make huge profits. As with everything do your research and make sure you acquire gold for your portfolio that supports your goals.