Numismatics are for Collectors, Not Investors

As a precious metals investor, you may heard much about numismatic and "semi - numismatic " coins , especially the $ 20 St. Gaudens Double Eagle gold coin . While collecting coins can be an interesting hobby , it is investing in metals are not necessarily related. Coins of this type vary in value with the ebb and flow of the collector market and are not strictly tied to metal value . These coins often go for much more than spot price as bullion coins.
One of the concepts that are being handled through pretty much the idea of ​​the U.S. government is seized. While it is true that the U.S. government does have a gold recall in 1933 by Executive Order of FDR , gold coins were affected to a significant value on gold value is not included in this recall . Many traders use this to imply that in the case of another seizure these older coins would fall into this category, in order to sell these types of coins to the unsuspecting or new metals investor. However, the seizure issue is a red herring for several reasons:
The dollar was backed by gold in 1933 and the recall was at least partially designed to stop the run on the banks , the dollar no longer any metal backing .St. Gaudens $ 20 coins in almost uncirculated mint state conditions are still very common even taking into account their age due to decades of storage in European bank vaults.There is nothing that numismatic items could not be seized in case of another recall , says the original executive order no longer any force of law .Gold is no longer in regular U.S. - issue coinage used ( the American Eagle gold coin , although it has a face value does not count ), and is usually used only in jewelry and privately held investment vehicles such as bars and bullion coins , would be more difficult because of remember and for the account . The majority of recalls gold coins in 1933 was placed in the bank vault.As gold is no longer used as a monetary instrument of the U.S. government is unlikely to seizure in any case.Now you may be wondering about silver in relation to this as well. There was a silver coinage for more than gold, and some silver coins can still be found in circulation. However, silver has never been subject to confiscation , and its status as a major industrial metal is good reason to believe that there will never be a recall silver.
90 % and 40 % silver U.S. coinage is still widespread , and although it is contrary to what I stated above sounds , these coins are a good value - as long as they are purchased in the vicinity of spot silver or less. This is an important distinction to make , as old silver coins ( often referred to as junk silver ) often contributes very little to no value as a collector's item on the metal value . This coin , if any, are semi- numismatic , but not at the bank collector value.
In short, when you change from the perspective of an investor metals never approach at a coin collector looking for value . Collector markets are often hard to get a pulse on , and numismatics are much more illiquid than their bullion counterparts. If you are paying more than spot , as well as a modest premium , you're paying too much.