When we talk about bullion, in general, we are talking about something that is priced according to the precious metal content. One need not be concerned with the "BU grade" of a coin that is truly bullion, because the value of bullion is not in the grade, but in the metal.
The U.S, Canada, Austria, Australia, the U.K., and many other countries strike coins specifically to be sold as bullion, and they strike as many as they can or as many as people will buy (whichever is less). BUT they also cater to collectors, and they strike limited numbers of proof, reverse proof, burnished, colorized, and other gimmicks to gain a higher selling price, and thus make more money.
What is "collectible"? Some people think that means the item should demand a higher price than the metal content, but that only applies if there is DEMAND. Does that demand come because it is a particular date? ...because it has a particular finish? ...because it is from a particular country? other reasons?... The answer is YES.
In my opinion, bullion is more likely to become collectible when a country issues the item with a new date each year for a number of years, thus encouraging people to want one from each year. On the other hand, many "collectible" issues initially issued/sold at a high premium will fetch only bullion value when trying to sell them (for example, many Franklin Mint issues, or certain sets issued by a mint).
Something can be "collectible" and still be bullion, and still be obtained for the same price as bullion. Many people, once they start "collecting" examples, start believing they need shiny, unblemished, pristine examples, and they are willing to pay more for it. A whole industry exists to cater to those that want to find the ultimate coin. People brag about their MS-70 examples and/or post pictures in "registries". However, not all collectors subscribe to the notion that they must have the best example that there is. There are those, in fact, that like well worn coins - but that is getting outside the discussion of bullion.
A long discussion could also be had about mints that crank out "limited" (perhaps only 500) issues of non-circulating legal tender (NCLT) coins, and the wisdom of purchasing such coins. Coins of odd shapes, with specks of meteorite, diamond, coal, etc., various colors, various Disney themes, Superman, bi-metallic, rare metals, etc. but, again, I am straying from the topic....
ps. A numismatist is one who collects numismatic items. Numismatic items are generally defined as coins and medals.
Referring to something as "numismatic" does not mean that it is rare, collectible, valuable, etc. (it just means it is a coin or medal).
By the same token "collectible" merely means it can be collected, but sellers want you to think that this means you have to pay "more". If a lot of people collect a particular item, it may become less available, thus cost more to acquire. If you collect things that no one else collects, you can generally avoid paying high premiums.
This could get us into whether people collect things in order for the value to increase, or just for the enjoyment of completing a collection, for example. Some people think you "are crazy" for collecting things that will not increase in value, others understand that a collection isn't always about profit (have you ever had a rock collection you collected while on walks?).
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(click here)See my topic on Mexican Numismatic Medals
(click here)Edited by nss-52
08/01/2016 07:44 am
Posted 08/01/2016 02:16 am
Wow, I can get long-winded at times....
