Numismatic verse Bullion | What You NEED To Know When Investing In Silver & Gold Coins
Precious metals such as silver & gold will always have intrinsic value and when economical systems are in turmoil, the currency value of these metals tend to increase significantly. Such was the case in 2008 when there was the global financial crisis that still lingers today. In fact may people are being advised to invest in silver & gold. The question is,Lebron 10 Elite, should we buy numismatic or bullion?Here is a YouTube video promoted by some independent distributors for Numis Network that was shared with me while I was doing my research.Whoa…well numismatic coins are definitely the way to go….or is it?As I continued my research this video screams to me, “All Marketers Are Liars” a book by Seth Godin, unfortunately missing the point on telling authentic stories. While the figures may be true, one very important piece of information that was not mentioned in this video is that numismatic coins and bullion coins are to completely different markets.What Are Silver & Gold Bullion CoinsBullion, made of precious metals such as Gold, Silver, Platinum and Palladium, is a category of investment that covers coins, bars, and rounds. Their value is primarily dependent upon the quantity of the metal in the coin, and are produced in large qualities. This means that they carry a very small premium above their cost, when compared to other categories. As with all precious metal investments, the more of one item there is on the market, the lower the price. Typically, bullion bars are the most well known in this category and sold in sizes ranging from 1 gram to 400 ounces. However,Lebron James Shoe, when talking about bullion coins, the most actively traded ones today are the Canadian Maple Leaf, American Gold Eagles, and American Buffalo. These three bullion coins are so popular they typically have the best bid/ask prices over other items such as bars. Since the bullion coin prices are so closely tied to the fluctuations in the price of metals, these are ideal for a short investment with the potential for a good return.All bullion coins are produced from government mints and are produced in large quantities. Sovereign governments such as the United States and Canada also give their coins a denomination in common amounts like, $5, $20 and $50 when minted. This way, the government minting the piece can call it a ‘coin’. Usually, the gold, silver, platinum or palladium within each coin is worth far more than its face value. For example, a $50 gold coin would be worth far more than its face value because it usually contains 1 oz of gold. A $1 silver coin is normally worth more than its face value of $1 because it may have over 1 oz of silver.Bullion products manufactured by private mints and banks are not referred to as coins. Only a governmental body has the authority to mint coins and give them a denomination. Private mints and banks refer to their products as Trade Units, Rounds, bars or ingots.Source: MintStateGold.comWhat Are Numismatic Silver & Gold Coins?One of our bullion customers a few years ago told us about an unfortunate investment he had made, $250,000 sunk into supposedly rare old gold coins. His words… “Now that gold has doubled in price, I still can’t find anyone that’ll give me what I paid for these @%&!#@g things.”Over the past few years, collectable numismatic coin outfits have been growing like weeds and thanks to their ruthless scare… ah sales tactics and incredibly high product markups of 30-80% or more over spot prices, buying expensive advertising is no problem for these folks.Be it on radio or television, they’ll even buy one of the Presidential Candidates you may have voted for or purchase the endorsement of a high exposure TV “newsman”.Here at GoldSilver.com we are often asked our take on numismatic collector coins. It is also rather commonplace to have all types of investors approach our dealership confessing their mistake in purchasing collector coins in the hopes of getting their gold and silver investment portfolios back on track.Ah but first, let us digress. We must define numismatics and explain the positive qualities of collectable coins,Lebron 10, yet why we believe they make poor silver and gold investments for the average investor.Numismatics is defined as the study or collecting of coins, medals, paper money, etc.Numismatic is the proper term for collector coins having added value to their collectors as beautiful, old, precious items, in addition to the value of the metal they contain.There are three “layers” of cost built into the price of a numismatic coin: metal content, numismatic premium, and dealer profit.This in contrast to bullion bars and bullion coins, which have only two layers of cost: metal content, and dealer profit.We think of numismatic coin collecting in terms of fine art. Common sense tells us that true numismatists, collector coin experts, are generally child coin collector enthusiasts who have acquired years of specialized knowledge sharpening their trade,http://www.cheaplebron10run.com. There are a select few of successful players in these arenas; they typically have lifetimes of expertise.As for novice involvement in collectibles, it can be very risky business from an investing and financial point of view.Let us be clear, in a precious metal bull market, a select few numismatic coins will do well; but many will not. Unless you are an experienced, knowledgeable coin collector, with as much or more knowledge than your numismatic dealer possesses, investing in numismatics is a high-risk proposition.As you can read, we are not fans of numismatics as investments… at least not in this cycle. There are a few reasons for this:For one, unless you are well educated and knowledgeable about these products, you cannot hope to profit. And, two, we believe a currency crisis is inevitable, and probably sooner rather than later.In the event of a global currency crisis, all the growing millions of investors who have been hoarding their collectible coins over the past four or five decades will dump them on the market in a desperate rush for cash or liquidity. Should that occur, the value of premiums on numismatic coins, save those items whose rarity is absolutely indisputable, will tank.Finally, we warn you that upwards of the high ninety percentile of scams and cons in the physical precious metal industry are pulled using numismatic and semi-numismatic coins. There are many scandalous methods cutthroat dealers may apply in hoodwinking investors; here are some classical cons they use:continue reading Investor Beware – Numismatic Collector Coins from the source GoldSilver.comMike Maloney is the authority figure when it comes to investing in silver & gold I and just want to reiterate what he said, “…investing in numismatics is a high-risk proposition.” Now if you still feel that numismatic is the way to go based on that video, let me point out one more piece of information.Since a number of States within the UNITED STATES OF AMERICA are attempting to accept silver & gold as legal tender, we should look to see how they would view numismatic coins. Good thing for us, the state of Utah has become the first state to accept these metals as legal tender again. So let take a look at the Sound Money Act of Utah and assume that if other states follow, they’ll adapt similar acts.Utah’s Sound Money Act59-28-302. Qualifying Coinage. The Specie Registry shall include all coins drawn from the following list which do not have a recognized numismatic or collectors’ character giving them a value well above that attributable to their precious metal content:In conclusion, numismatic coins have a premium price on top of the spot (market) value silver & gold while bullion coins are inline with market value. On top of that, bullion can easily be sold in the market place at spot price while it would take a dealer or coin collector to purchase a numismatic at the premium price which may not be an easy task if you do not have years of experience with collecting silver & gold coins. Bottom line, buyer beware and if you are adamant on purchasing numismatic coins for investment purpose, I’d suggest Numis Networks as they offer a 5 year by back guarantee of the amount you purchased it for. Do your due diligence and don’t get caught with gold fever! Author’s Bio:
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