What Is The Difference Between Bullion And Numismatic Coins?

By Author: Curt Maly
Total Articles: 9
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If you love money, what better hobby to have than collecting money? Many money enthusiasts express their love for this treasure by collecting it in the form of coins. They do so not just for the value but for the beauty of the coins and the history that it may represent. Others do collect for the sole purpose of investment. The most common forms of coin collection are gold and silver (though some may collect platinum) bullion and numismatic.

A bullion coin is a coin struck from precious metal and kept as a store of value or an investment, rather than used in day-to-day commerce. Bullion coins sell for a premium over the market price of the metal on the commodities exchanges. This is due to their comparative small size and the costs associated with manufacture, storage and distribution. The margin that is paid varies depending on what type of coin it is, the weight of the coin, and the precious metal. The premium also is affected by prevailing demand. Bullion coins are purchased chiefly for investing. And we know that the rise and fall of gold and silver commodities are what determines the value for these coins.

Numismatics ...
... is simply the studying and collecting of money. In a nutshell a numismatic coin is regular bullion coin issued by the US (or any other) government that has been certified for authenticity by an independent third party. To prepare it for sale it's then sealed into a container. Its market values are determined by its rarity, condition, mint date and marks, not taking into consideration their precious metal content.

These coins are made in limited quantity or for commemorative reasons. They include everything from the ancient coins used as currency from the beginning of civilization, to the official coins minted by the Roman Empire, through today's modern issue silver and gold coins produced by the world's government mints.

Generally speaking, due to the perceived value of the event it's honoring, numismatic coins will be sold at a value for more than what the metal is currently worth and may take months or years to appreciate in value. Bullion coins are based on demand of and value of the given. Also, determining the value of bullion is much quicker and easier than determining the value of numismatic coins, as there is far less ambiguity in bullion. However, there are also several examples of numismatic coins selling for several times their metals worth as well.

The fact is that the numismatic industry is booming with over $10 billion business in North America alone and over $120 billion globally. With its explosive growth over recent years, collecting numismatic coins can be a very profitable business to be involved with. A lot of people are realizing that the dollar is quickly losing its value and many folks are securing their riches on gold and silver.

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