If you are considering a way to boost your investment in gold or other precious metals, perhaps you may be interested to know about numismatics. What’s that you say? Yes, it’s coin collecting! Sounds like something for kids, right? Thinks again, there is some real money to be made in collecting, trading, and selling rare coins. That’s if you know what they’re worth, of course.
Buying gold can be a good investment, of course. But investing in gold coins that can really increase in value, let’s find out how you can cash in on that. Have you ever heard of the double eagle gold coin? It was first minted in 1849 during the gold rush, and had a face value of $20. They actually got the name “double eagle” because the $10 gold coin, which was minted first, had an eagle as well but was worth half as much. Hence the double eagle was probably the most popular gold coin ever minted – in fact, a 1933 double eagle holds the world record at auction for a price of $7.59 million. Sounds pretty steep, right? Not all of them are quite that rare of course.
• So what really makes a coin so valuable? Let’s take a look at the various attributes that can effect the price of any coins, whether rare or not.
• Metal Content – if a coin is to have real collectible value, it should be either gold or silver. Any other metal will not be enough to make a precious collectible.
• Rarity – only certain coins are made on a strict set of circumstances, or limited number. These are of course the rarest and are meant to be collectibles.
• Grade or condition – depending on the condition of the coin, the value can vary quite a bit. Numismatics know this and only purchase the highest grade.
• Popularity – some coins are simply more popular than others, whether due to a certain historic consideration or just the visual effect.
• Mint mark – whether minted in Denver, Philadelphia, or San Francisco, a coin may have a different value due to the number of coins made at that particular mint.
So how do you grade the condition of a coin? Well there is actually a scale, which is called the Sheldon scale which was created by William Sheldon in 1948. Before that coins were not graded on an industry standard, but now have a scale that ranges from 1 to 70. Here is the breakdown:
• AG-3 (AG stands for about good) – the lowest grade, where the coin is barely discernable due to excessive wear
• G-4 – Good – only a little good, really. Still pretty low
• VG-8 – Very good, although still in the middle of the scale
• F-12 – Fine
• VF-20 – Very Fine
• VF-30 – Choice, very fine
• EF-40 – Extra Fine (now we’re getting somewhere, right?)
• EF-45 – Choice extra fine
• AU-50 – About Uncirculated, which means nearly untouched
• AU-55 – Choice About Uncirculated which is very good
• AU-58 – Very Choice About Uncirculated
• MS-60 to MS-70 – Uncirculated or mint condition
• MS-70 – Perfect, mint condition (no marks or imperfections at all)
There are a lot of other things to learn about collectible coins, but these facts should be a good start. Learn all you can about the intricacies of collecting them, and you can certainly make some great investments. Just make sure you get your coin valued by a reputable dealer before you buy, so you don’t get taken.