Bullion Coins vs. Numismatic Coins

Many people who want to invest in gold usually start with something like gold coins. There are two kinds of coins that you can invest, numismatic coins and regular bullion coins. It really does not matter which ones you have because the intrinsic value of gold is the same regardless of the form it comes in. However, rare gold coins have a numismatic value that can be far greater than the value of the precious metal in that coin.

Numismatic coins are coins whose value is above the base value of the metal. They are sometimes valuable because they have been minted in a special way or have a one of a kind design or markings. The bottom line is that they aren’t valued for their gold, but for other reasons that make them special. They are generally rare and collectable. 

Bullion coins are the most common coins cast and minted annually. In the early 20th century, some of these coins were used as legal tender but nowadays they are mostly sold to investors. Bullion coins. One in a variety of shapes and sizes. Some of the more popular bullion coins include: the Australian Gold Nuggets, The South African Kruger Rand, Austrian Vienna Philharmonic, the Canadian Gold Maple, Chinese Gold Panda and the S. Gold Eagles coins. A Bullion coin can get numismatic status if a mint halts production or if the coin is tied to some significant historic event. 

The benefits of owning bullion coins over numismatic ones is that they are easier to sell. Bullion coins are attractive to coin collectors and gold investors because they are always in demand regardless of the fluctuating gold spot price. It is easier to work out the prices of the coins when you sell gold bullion. Numismatic coins on the other hand, are harder to sell as collectors only look for a specific coin at one point. 

So, you see, it is very profitable to own rare coins. However, like most investments, there are no guarantees. Your investment can lose value. It is important to do proper research into the bullion gold market and get a real understanding of the gold coin market. The numismatic coin market is not as liquid as the bullion coin market, which can make finding a gold buyer willing to give you what your coin is really worth challenging.  

When buying or selling a rare coin, you have to know what that coin is worth in today’s market, and it might also be helpful to consider how the market may change in the future. You can use prominent rating services like Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service to learn more about the value of rare coins and how much you can expect to get when you sell gold bullion coins.

 If you are going to buy gold coins for their numismatic value do plan to hold on to them for a couple of years before selling. Numismatic coins do not operate the same way on the market and they can be a great long-term investment and a great hobby. When selling your bullion coins wait for the gold price to go higher. Bullion coins are after all more valuable for the gold content than for how they look.