BULLION COINS VS. COLLECTIBLE COINS
A
bullion coin is a miniature store of wealth whose value is determined
by the current price of its precious metals content. A collectible coin
is a coin that has additional perceived features above its precious
metals content that escapes
the notice of others such as: a rare date, mint mark, condition,
pedigree or something else that distinguishes it in the mind of the
buyer as having extra value. This perceived extra value is known as its
numismatic value. While the bullion value of a coin
is limited to a small transactional charge above or below the current
price of its precious metals content, the numismatic value of a coin is
limitless.
A
good example of limitless numismatic value is the 1933 $20
Saint-Gaudens double eagle which, is one of the rarest coins in the
world. The coin sold at auction in 2002 for $7.5 million.
The bullion melt value, also known as the intrinsic value is $1,280.84!
