Numismatics (new miss MA ticks) was the hobby of Kings. Simply put, it is the collecting of rare or limited coins from all over the world, very much like an art collector or antique dealer. A coin collector or coin specialist is called a Numismatist (new MIZ ma tist) and the study of coins is Numismatology (new MIZ ma TOL o jee). In recent times, numismatics has become a lucrative home business even with internet marketing experts.
Have you noticed all the ads and signs asking for gold and silver? Those buying it know that the value of those two metals have been on a constant rise over a long period of time. They make their money by buying low and selling high. The average person does not track the varying worth nor does he understand if he got a deal. The need for immediate cash can outweigh better judgment.
People who make a home business from gold and silver coins need to know the difference between the value of the metal and the value of a coin. Art value, limited editions, uniqueness, etc., all increase the value over the mere weight of the silver and gold. Otherwise, the gold or silver buyer is gambling that the price of the metal alone will rise.
A silver coin has the monetary value that is stamped on it. For example, an American Eagle silver dollar can be used at the store as one dollar. But its silver content is worth $18. If it has been graded and encapsulated as perfect (MS70) by a company such as ANACS, its value will be around $125. How could this affect the average consumer?
Consumers often confuse “slab” or bullion coins for limited edition, MS70 coins. There are those who would take advantage of this ignorance. To help people avoid this, a report was posted on eBay – http://reviews.ebay.com/The-best-coin-graders-NGC-ANACS-and-the-worst_W0QQugidZ10000000003785971 – giving a review of coin graders and warning the consumers about the difference.
Bullion coins are often sold in rolls straight from the mint. They are known as “slab” or “mint” coins. Some sellers will tell you that this ensures they have never been touched. They arrive in a stiff clear plastic but are not graded. The cost is usually just above the current value in silver. You need an expert to determine the value of the coin and still it will need to be encapsulated. If there are any MS70 coins in there, you got a good deal. Even “straight off the press,” coins may not be MS70 or even MS69.
There is also a huge difference between MS69 and MS70 (highest). The age of the coin also changes its value. A coin’s value can increase due to other various reasons such as the artist’s popularity, the aesthetic appeal, or even a collector’s desire to complete a collection. And, this applies to their increase in value as the coins get older or rarer.
A home business in Numismatics is very lucrative but you do need to learn about the above so you do not get ripped off. There are counterfeits out there. Knowledge is power and this subject is not well known. It is not hard to learn what to buy and where but learning it is vital.
To push the point home, get some evidence. Research will show a 2010 American Eagle silver dollar listed with a dealer (http://www.austincoins.com) as bullion and as graded coins. As of July 11, 2010, this dealer was selling a roll of American Eagle silver dollars for $459 which is $22.95 per coin. The same coin, same year, but graded by NGC or “certified” MS-69 costs $29.95. An MS70 coin lists for $125.
You may ask why the MS-70, same coin, same year, sells for $125. The answer is supply and demand. Just like fine art, you are going to get a value based on what the consumer wants. MS70 is the best. The encapsulation ensures it is never going to decrease in that grade (use this link for an image of the ones I bought http://www.cherylcurrie.com/wp-content/uploads/2010/03/American-Liberty.jpg). It is the difference between a damaged or tarnished antique and one that is restored and looks like it was just made.
Numismatics is not an investment activity. A home business in numismatics is just like any other. The product is the best coins of gold and silver offered at a fair price, the owner of the business makes a profit and the whole thing depends on supply and demand. Right now, there is a lot of demand.
You can see how values change over time with this chart: http://www.cherylcurrie.com/wp-content/uploads/2010/07/Numis-What-It-Sells-For-Now.jpg. You can also check out prices with professional auctioneers such as http://www.youtube.com/watch?v=5QKoU0q6Jvk and eBay. Some coins from five years ago have given a much better return than most mutual funds or certified deposit.
Knowledge of coins is paramount to a successful home business in numismatics, gold and silver coin marketing. There are many who have already retired quite wealthy from marketing in this field.
Learn more about gold and silver coins and how they can make you money. Stop by Cheryl Currie’s site where you can find out all about building your own home business and what it can do for you.
