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NEWSLETTER

What to invest? Investing in silver


coins and numismatics

NOVEMBER 20

Indian Numismatists
Authored by: SURESH KUMAR M

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What to invest? Investing in silver coins
and numismatics
Many people who have savings want to put them in a safe and profitable place. The
best known ways to invest are to buy real estate, shares, bonds or popular bullion. The
type of coins purchased has a major impact on the success of the numismatic
investment. When investing in coins, we have to choose the right place to make a safe
and secure transaction in order to have good results.

Wondering what to invest in? Many people who have savings want to put them in a
safe and profitable place. The best known ways to invest are to buy real estate, shares,
bonds or popular bullion (gold and silver). An alternative to these choices is to invest in
numismatics. What does it mean? You will find out everything from the following
article. We invite you to read it!

“Coins are a fascinating piece of history. Numismatics may be a


Hobby or passion to outer world but it’s an art to the real
Numismatists”

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Buying coins and investing?
How can buying coins be profitable? Everything depends on our knowledge of
numismatics and trends in the collector market. Why do some coins gain in value after
a few years and others do not? There are many factors. First of all, we should mention
here the type of coin. The bullion from which the coins were struck, the mintage
(volume of issued coins). The state of preservation and the degree of rarity.

Where to buy coins to make shopping safe?


As we mentioned before, when investing in coins, we have to choose the right place to
make a safe and secure transaction. In Poland you can find hundreds of smaller and
bigger numismatic shops scattered all over the country. Thanks to the Internet, it is
possible to browse their offers in one place.

Types of coins
As we have already mentioned, the type of coins purchased has a major impact on the
success of the numismatic investment. The basic division is:

CIRCULATION COINS – there are relatively many of them. Issued as a means of


payment, in the past they minted from gold and silver. The most common coins can be
bought for a penny, but numismatic price records are available for this type of coins.

The most expensive coin in the world is the one-dollar American coin from 1794. It sold
for over 10 million dollars at auction in 2013. Circulation coins are also the most
interesting way to invest. Because with the purchase of more coins, we learn about
their history and the history of the country and the mint in which the disc was struck.

COMMEMORATIVE COINS – are minted in order to commemorate a specific event, an


important historical figure, building or place. They are easily recognizable, have a face
value, which is usually equal to its real value (that is why they are in circulation).

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COLLECTOR COINS – their definition is very similar to commemorative coins. The
biggest difference is the fact that the denomination of a given collector coin is only
symbolic. The actual value of collector coins is usually much higher.

BULLION COINS – issued for investment purposes. Those minted from precious metals
(mainly gold and silver) and their value determined almost exclusively on the basis of
the content of a given metal. There are exceptions, however, to the effect that some
vintages are more valuable than others (e.g. due to their rarity). Their circulation is
practically unlimited and depends on demand. The most popular bullion coins are:
Krugerrands from South Africa, Maple leaves from Canada or Vienna Philharmonic from
Austria.

Conservation status and return on investment

The state of preservation of the coins is also an important factor influencing the
profitability of the purchase. The degree of preservation of coins is seven – the best
preserved coins are those in the mint condition. They have practically no damage and
look as if they were never in circulation. They do not show any scratches, upholstery,
etc. Of course, if you are looking for old coins, you will almost certainly not find them in
the mint condition. Specialists emphasize that it is not worth buying coins in a worse
condition (unless we are dealing with a very rare coin).

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