Why People Buy Numismatics
The word numismatic is described as the study and collection of currency and coins. A broader explanation refers to numismatics as money, and its use in the exchange of goods and services. When we refer to numismatic value we are discussing something that has value above and beyond the perceived value. For example the first $20 dollar bill ever printed at the US Mint is actually worth far more than $20 dollar face value of the bill itself, why? Because people are willing to pay much more for it, because it was the “first” $20 dollar bill ever printed. This is a very special $20 dollar bill that is no doubt highly coveted by its owner and worth tens of thousands of dollars. This is also referred to as the collector value. The collector value is a premium above the metal`s market value or the notes promissory value.
Some refer to the purchase of numismatic coins as an investment. Numismatic investing is different. It doesn’t give you income, interest or pay a dividend. The bullion investor is only interested in the base value or spot price of the metal itself. The numismatic investor is interested in value above and beyond the base value of the metal. Certain characteristics for example a rare date, rare mint or the pristine condition of the numismatic coin can give it far greater value than the coins base value in metal.