Why would you buy a Numismatic Coin over a Bullion Coin? Bullion Coins trade at prices close to spot. Numismatic Coins trade for premiums over their actual metal content. Some of them go for just over spot where demand may be low while others can go for many times over spot based on factors like how many were made or survived and the condition they are in.
An example of how a Numismatic coin can go up in value much more then just Bullion spot pricing would be a $20 Saint Gaudens MS64. In 1991 this Numismatic Coin sold for between $400-$500, while Gold spot price was between $300-$400 an ounce. If you had bought both an ounce of Bullion and a $20 Saint Gaudens MS64 Coin and held onto them for the last 20 years both would increase in value. However, the value of the Bullion today would give you an increase of about $900, where the $20 Saint Gaudens MS64 would give you an increase of between $1500-$2000.
Think on this for a few days...
Mark Scott, my boss, has his "Solid Six" choices for Numismatic Coins that you should have in your collection. I will be talking more about those in the days to come so keep checking back.
In the mean time have a great afternoon,
Kimberly
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