Investing in gold or silver bullion isn’t the same as buying rare and valuable coins. Unlike precious metal investments, numismatics is the act of collecting and studying currency, most frequently coins and tokens. However, the distinction between the two is not nearly as simple in real life. Whether you’re an aspiring collector or an investor interested in precious metals, this quick read will help you understand the difference between precious metals and numismatics.
Money Value vs. Numismatic Value
One of the biggest differences—if not the biggest difference—between precious metals and numismatics is cash value. Whereas the value of any refined precious metal depends primarily upon its precious metal content, the value of rare coins and other numismatics is also determined by their form, condition, and history. That’s why investors are not encouraged to purchase numismatics as part of their diversified portfolio since numismatic value can fluctuate more dramatically than the intrinsic monetary value of, say, gold bullion or platinum coins.
Physical Ownership
Another difference between precious metals and numismatics is often in how the coins and bars are stored, handled, and enjoyed. Because serious investors typically purchase bullion coins in the hundreds and sometimes thousands, off-site storage is preferred over storing at home. That’s not to say numismatic coins can’t or shouldn’t be stored in a safety deposit box or other off-site storage location, a few rare coins are much easier to manage than hundreds or thousands of precious metal bullion coins.
California Numismatic Investments aims to serve the needs of collectors and investors. We are one of America’s largest dealers of precious metals, including some of the finest certified rare coins in the world. Visit our website to browse our selection of gold, silver, platinum, palladium, and rhodium bullion coins and bars. One of our most popular items is the American Platinum Eagle 1 oz! If you have any questions, call us toll-free at (800) 225-7531.