How To Buy Silver Coins That Are Numismatic Graded

This How To Buy Silver Page Focuses On Numismatic Graded Coins

Numismatics refer to coins whose value is principally based upon such factors as condition, grade, scarcity and demand, rather than their precious metals content.

Many coins graded by the two largest grading services, Professional Coin Grading Service (PCGS) and Numismatic
Guaranty Corporation (NGC) are considered numismatic coins.

Numismatic coins can be great for coin collectors who know coin values, but you simply want to focus on the precious metal value.

Advantages

Numismatic products currently do not require a SSN upon liquidation.

Because they are graded and have value over the precious metal content, they may not be subject to a government confiscation, if that were to happen.

Disadvantages

With a numismatic coin, you will pay large margins over the silver bullion value, based on rarity and the grade of the coin. You’re paying for the rarity and how much someone covets that coins.

When you go to sell a numismatic coin, you will need to find the exact right buyer who will pay the premium cost of the coin. When spot prices sky-rocket, lots of these numismatic coins will flood that market and dealers wont care much about the ‘collector’ value, so you will lose the premium you paid.

Whereas with silver bullion coins, there’s always a huge market of people will buy it based on the spot price.

Recommendation

If you can buy numismatic coins for close to spot prices, then there’s no real risk, otherwise you can lose the high premiums you pay for these coins.

The next topic in the ‘How To Buy Silver‘ education series is:

How To Buy Silver Bullion Bars