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 Replies: 10 / Views: 4,330 |
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New Member
United States
37 Posts |
I do know that a drop in gold/silver prices will correlate with a drop in the melt value of a coin. But does a drop also cause a drop in the collector value? The reason I ask is because I've noticed coin prices overall have been dropping the last several years... about the same time gold and silver peaked and has been slowly declining too.
A silver quarter's current value is $3.00. If silver jumps to $50/ounce, melt value jumps to almost $10, but do people generally pay an additional premium on top of that?
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Pillar of the Community
United States
1119 Posts |
PM prices can mostly only negatively affect the numismatic value of a coin. high PM price can remove all numismatic premium
Edited by Steele
07/24/2017 8:54 pm
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Rest in Peace
United States
18456 Posts |
I have been collecting upper circ.to BU silver coins lately with this theory . I know they already have Numismatic value but I'm sure if silver ever goes through the roof they will have an extra boost in value .  Edited by T-BOP
07/24/2017 8:54 pm
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Rest in Peace
United States
17900 Posts |
Coins that have a primary influence in their price from metal value usually don't have as much of their value tied to a collector value base influence. In other words, if you are buying "junk silver" those values are directly influenced by metal prices and will rise and fall in value as the metal values change.
At the other end of the spectrum, where nearly all of the value is from collector value rather than metal value, those coins may not change at all when the metal value changes. Even when the metal value change is significant.
As an illustration, if silver jumped to $200 an ounce tomorrow, that would not change the value of an 1804 silver dollar a single penny. It would skyrocket junk silver coins.
As a rule, if the vast majority of a coins value is collector based, it will not change much, if at all, because of metal spot prices.
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Pillar of the Community
United States
1119 Posts |
Quote:
A silver quarter's current value is $3.00. If silver jumps to $50/ounce, melt value jumps to almost $10, but do people generally pay an additional premium on top of that? the short and easy answer to this is to ask yourself this: if the value of the coin now is $3 with all of that being melt value and silver goes up in price why would the coin gain numismatic value? on the other hand dropping silver prices can affect it the other way when silver was $45 an ounce and quarters were $8.50 each. not many washingtons traded for more than that. now that silver has dropped to 16/ounce some of the nicer washs still can go for more than $3 Edited by Steele
07/24/2017 9:12 pm
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Bedrock of the Community
Australia
21786 Posts |
The total market value of a coin, such as a St Gaudens Double Eagle, has TWO value components. 1. gold value 2. numismatic premium over the gold value. In more general terms the fine arts market, (which includes coins), tends to rise when gold, in the medium to long term, is seen as a hedge against inflation. In this sort of case, the numismatic value also tends to loosely trend up or down with the gold value. It all comes out with current public auction prices realized, and that is all you really need to study, and where due diligence needs to be done, before making a decision to buy or sell.  or  Otherwise known as price research. Edited by sel_69l
07/24/2017 10:39 pm
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Bedrock of the Community
United States
17884 Posts |
There is also a time component. If metal prices rise RAPIDLY numismatic value tends to get lost and swallowed up in the metal price. For instance if a quarter is worth $3 for silver but due to the numismatic value sells for say $10. Then the value of silver jumps and the silver value is now $10. The numismatic coin does not see that same jump and may now only trade at $15. If it had jumped so the melt value was $15, the numismatic coin might have risen to only say $17. Now if that metal price rise had taken place over say a two or three year period, the numismatic value of the coin may have kept pace and ended up selling for $22. As a general rule lower value numismatic coins tend to rise and fall with metal prices but they do so at a slower rate.
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Valued Member
United States
265 Posts |
From what I understand, something like a 2017 Silver Eagle's price would reflect more on what the value of silver is at the time. I think this is called intrinsic value. So like what was mentioned before, junk silver coins and bullion coins are affected by the price of metals. Something like a 1916-D Mercury dime may not see a hike in value because that is mostly based upon it's rarity and condition. This in the numismatic value. If I am wrong about this, then I am misunderstanding. Feel free to correct my statements. |
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Valued Member
United States
52 Posts |
I think you are right on mail187man.
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New Member
 United States
37 Posts |
Quote:Something like a 1916-D Mercury dime may not see a hike in value because that is mostly based upon it's rarity and condition. It was my belief that if silver or gold goes up a lot, it would create demand for these coins and collectors would hoard more of them. This would then cause numismatic values to increase as there is less supply to sell on places like ebay, Heritage, etc. A lot of silver coins I looked at on those websites (especially varieties/cherrypickers) were selling for much more a few years ago than they are today. Silver prices were also almost $50/oz several years ago. And the prices they were paying back then wasn't just because the melt value was higher, because we're talking $100 swings or even more. Edited by error_koin
07/29/2017 12:47 am
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Pillar of the Community
United States
997 Posts |
The way I look at it is that if a coin has a value higher than its melt value it has numismatic value. Whether it has numismatic value or not depends on the person. For me, since I usually just collect 20th century circulation pieces, numismatic value to me depends on whether I have a hole to fill.
To collectors of higher status coins, such as gold issues or older coins the definition gets more to condition and rarity, and much more often these have value well beyond the melt.
For those who like the LTCP (Legal Tender Collector Pieces) (I don't consider them coins as they were not intended to be used in commerce) it is more about the design and artistic value as well as the intrinsic value of the metal.
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Replies: 10 / Views: 4,330 |
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Posted 07/24/2017 8:43 pm
