Numismatics, (pronounced: new miss MA ticks) is the art and study of collecting coins. A Numismatist (pronounced: new MIZ ma tist) is the person who collects coins or studies them. Numismatics began as a hobby cherished by those in power. Now its popularity is far more common. As a home business, marketing gold and silver coins has a lot of potential ranging from gold bullion to network marketing.
Those who deal in gold and silver know the facts. Gold and silver have been on a rise in value for quite a while. But, that does not mean your gold or silver coin has a particular value. It could be worth more, it could only have value melted down. Those who are not educated on this subject may sell for far less than the actual worth and those who buy could be severely disappointed.
There are several ways to create a home business from gold and silver coins. One is to buy gold and silver bullion coins and another is to buy limited edition coins that have artistic value due to their high grading and other characteristics. Both have potential but the highest graded, limited editions apparently increase in value faster.
With coins, one type of coin can have three or more values. The American Eagle silver dollar is a great example of how this can be. A cashier will only see a dollar, a silver dealer will see $18 worth of silver. If you have it graded by a reputable company such as ANACS and it is graded MS70 and encapsulated, the value is $125. How can knowing this help the consumer?
The difference in value is so much that one concerned eBay member issued a warning (see report) http://reviews.ebay.com/The-best-coin-graders-NGC-ANACS-and-the-worst_W0QQugidZ10000000003785971 and provided a review of reputable grading companies, naming the two best as NGC and ANACS. Should this article no longer be available, it said, in summary that "slab" coins do not have the same value as collector's coins.
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 true Numismatist will ensure he gets MS70 coins, graded by NGC, ANACS or other reputable company and encapsulate them in plastic for protection. He deals only with the most reputable dealers. There have been counterfeit labels printed in garages and put on a plastic case in which sits a "slab" coin. If you want something that has value and is likely to increase in value, then you need to know the difference between a slab coin and a MS70.
For example, take the 2010 American Eagle silver dollar. If you did some research on the internet, you would find that a roll of these silver dollars sells for around $460 which is about $23 a coin. The same coin, certified (graded), would sell at about $30 if it is MS69 and $125 if it is MS70. Here is a dealer site to check: http://www.austincoins.com. Obviously the MS70 is valued more as a collector's item.
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.
Most people have a collection of coins somewhere. Unfortunately, most also throw them in a box and have no idea what they might be worth. There is no guarantee that they increased in value just because they are old. It depends on 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.
Basically, if you know what coins are valuable, you will not get ripped off and could even build your own lucrative home business with numismatics gold and silver coin collecting.
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.