Numismatic Coins from Bullion Coins

Numismatic Coins from Bullion Coins

Elevating Bullion Coins to Numismatic Coins

Numismatic coins are those coins worth collecting to a coin collector.  Alright, any coin can be collected.  Many collectors take coins from circulation the year the coins are issued.  But, to be a numismatic coin there must be a market for the coin.  If a coin dealer will pay a premium to obtain a coin for inventory, and sell it at a higher value, it has numismatic value.  But, just as a common coin taken from circulation has no added value, bullion is often thought of as having less than numismatic value.  That is, bullion coins become numismatic coins once they appreciate beyond the value of their precious metal content.  That appreciation must be more than the small markup a dealer charges to handle the coins.


Mint Elevation of Bullion Coins to Numismatic Coins

What Can a Mint Do?

Coin value is based on supply and demand.  If the mint can add to the demand the coin may appreciate to become a numismatic coin.


One thing a mint can do is limit mintage.  A greater demand can be created for several limited mintage bullion coins easier than for one high mintage coin.  So, a mint can offer several bullion coins, and limit mintage on some of them.


A mint can make special editions of bullion coins.  One way is to add privy marks.  A small inclusion of a privy mark can escalate the value of a coin that might otherwise languish near bullion value.  The privy mark is not the only thing a mint can do differently.  In 2018 the Royal Canadian Mint issued special thirtieth anniversary silver Maple Leaf coins.  Some have a large number thirty on them, and others use an incuse design.  This allowed the Royal Canadian Mint to have multiple versions of the silver Maple Leaf coin.  The Royal Mint issued a special Oriental border on some, not all, of its bullion Britannia coins.


Finally, an image of collectability to multiple groups adds value.   The Star Trek, Star Wars, Superhero, and Disney Character bullion coins appeal to multiple groups of collectors.  Once a coin enters a Disney collection it has little chance of becoming available in the near future.  Collectors hold onto such coins.


Individuals Can Elevate Bullion Coins to Numismatic Coins

How Can a Collector Elevate a Coin?

First, simply by waiting some coins can go up in value.  This is especially true if a mint has already done something.  But, who wants to wait?  The reality is that some bullion coins grade high.  A collector, or a dealer, can select those coins that have promise of grading MS-69 or MS-70 and sending them to a reputable third party grading service.  A high grade should produce some numismatic enhancement.


Please visit Black Spaniel Gallery Coins to see out inventory.  Also, we have other informative articles, and will continue to add articles at Black Spaniel Gallery Blog.


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