Numismatic Value? - Coin Community Forum

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Author	Replies: 7 / Views: 3,343
snitchard Valued Member United States 420 Posts	Posted 12/31/2010 5:30 pm Hello, What is the difference between the numismatic value of a coin and the base metal value? Specifically with Silver Eagles but this also pertains to any other modern coin. Silver is nearing $30 per ounce. Does a silver Eagle have any numismatic value outside of the silver content? What about other modern coins like the Presidential dollars? Sure errors, rarities, and varieties may be "worth" more but what makes a coin "worthy?" I have a modest collection of modern coins and the Fair Market Value according to Numismedia isn't anything to write home about, but, my entire collection's sentimental value and the story behind some of those coins is priceless. Any Thoughts? Thanks, Rich Rich M. - Collector since 2008 Report this Post to the Staff

xshift Pillar of the Community United States 2669 Posts	Posted 12/31/2010 5:39 pm Base metal value is bullion value - what the amount of precious metal it contains is worth at current price. So Silver Eagles bullion value, being 99% silver, would be worth today's price of an ounce of silver. Numismatic value is what a collector is willing to pay you for that coin, based on rarity, condition, and just plain how much they want it. Coins are always worth the greater of (a) bullion value, (b) Fair Market Value, or (c) what they mean to you. Report this Post to the Staff
Josh Valued Member United States 115 Posts	Posted 01/01/2011 2:35 pm The other question that comes up is if the ASEs are to be considered a coin or just bullion? Personally, I think of them as bullion. Report this Post to the Staff
xshift Pillar of the Community United States 2669 Posts	Posted 01/01/2011 2:47 pm That's an interesting question. I think their original intent was bullion, but the series has key dates (priced accordingly higher) - bullion usually does not. They also have Legal Tender status and a denomination. I know some people collect them as coins, and there are binders/holders by Littleton, etc, manufactured to hold and display them. On the other hand, the price one pays (besides for the key dates & variety) is according to the current price of silver, just as with other bullion. So it's probably one of those grey areas, up to the individual collector. Report this Post to the Staff
just carl Bedrock of the Community United States 20753 Posts	Posted 01/02/2011 10:47 am That is the problem with thinking of coin collecting as a hobby, buisness or investment. All way to different systems of values. For me this is a hobby and I really could care less about the so called melt value of a coin. And that too is rather silly since when you hear melt value is one thing and you could not sell it for that since that is what dealers are selling it for. So you spend a lot of time on the internet trying to sell for melt and find not to often you get that. A coin dealer I know constantly says as you walk up that Silve is up. I constantly tell him SO WHAT? I want to buy coins, not Silver. I tell him if he wants to sell me a 1916D Mercury dime for the Silver price, then lets make a deal. And I walk away. Since I never sell and never have sold a coin, it really makes no difference how much Silver, Gold, Platinum or Uranium is worth. IF your are really a coin collector for a hobby, don't even look at the values since they only mean something if you plan on selling them. Report this Post to the Staff
Libertad Pillar of the Community Canada 3692 Posts	Posted 01/02/2011 12:13 pm Carl: What about for insurance? Report this Post to the Staff
Bowfin Valued Member United States 296 Posts	Posted 01/02/2011 6:17 pm Quote: That is the problem with thinking of coin collecting as a hobby, buisness or investment. All way to different systems of values. For me this is a hobby and I really could care less about the so called melt value of a coin. And that too is rather silly since when you hear melt value is one thing and you could not sell it for that since that is what dealers are selling it for. So you spend a lot of time on the internet trying to sell for melt and find not to often you get that. A coin dealer I know constantly says as you walk up that Silve is up. I constantly tell him SO WHAT? I want to buy coins, not Silver. I tell him if he wants to sell me a 1916D Mercury dime for the Silver price, then lets make a deal. And I walk away. Since I never sell and never have sold a coin, it really makes no difference how much Silver, Gold, Platinum or Uranium is worth. IF your are really a coin collector for a hobby, don't even look at the values since they only mean something if you plan on selling them. In all fairness, put yourself in the sellers shoes. Why would he/she not sell an item for the higher price? It would be illogical to deliberately sell at a lower price when the market will bear much higher. That is just good business sense. If there is a different market willing to pay more for a product, then one caters to that market. It's a no brainer. If you were thinking about selling, would you be willing to sell any of your coins for their lower numismatic value or their higher melt value (if it had one) because you don't care about the price of silver..? Report this Post to the Staff
Sap Moderator Australia 16817 Posts	Posted 01/02/2011 8:30 pm Theoretically, a coin's "fair market value" has three components: - the face value, the amount of money you'd get for your coin if you banked it. If a coin is demonetized or obsolete, then the face value is zero. - the bullion or scrap metal premium - the the difference between what the bank will give you, and what a scrap metal merchant will give you. Note that for many modern circulating coins, this value should always be negative, otherwise the government is losing money making them. - the numismatic premium, the difference between what a scrap metal merchant would pay and what a coin collector would pay. This should never be negative, otherwise coin collectors would find that people will not sell coins to them. Coin collectors and dealers should adjust the prices of their coins up and down with the bullion price. If they don't, it's because they're either lazy or because, as in justcarls example of the 1916D dime, the numismatic premium is so much higher than everything else it doesn't really make much difference. Lets look at your two examples. The Presidential dollar: - has a face value of $1 - has a scrap premium of about -80 cents - has a numismatic premium of a dollar or more, depending on type and condition. so it's final value is more affected by face value, rather than scrap value, and the numismatic premium outweighs them both. The ASE: - has a face value of $1 - has a bullion premium of $29 - has a numismatic premium of a couple of dollars or more, depending on date and condition so its value is dominated by the bullion price. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis Report this Post to the Staff
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