What Is Numismatics And Why Is It Important To Entrepreneurs?
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.
Have you noticed all the ads and signs asking for gold and silver? Those buying it know that the value of those two metals have been on a constant rise over a long period of time. They make their money by buying low and selling high. The average person does not track the varying worth nor does he understand if he got a deal. The need for immediate cash can outweigh better judgment.
People who make a home business from gold and silver coins need to know the difference between the value of the metal and the value of a coin. Art value, limited editions, uniqueness, etc., all increase the value over the mere weight of the silver and gold. Otherwise, the gold or silver buyer is gambling that the price of the metal alone will rise.
A silver coin has the monetary value that is stamped on it. For example, an American Eagle silver dollar can be used at the store as one dollar. But its silver content is worth $18. If it has been graded and encapsulated as perfect (MS70) by a company such as ANACS, its value will be around $125. How could this affect the average consumer?
Consumers often confuse "slab" or bullion coins for limited edition, MS70 coins. There are those who would take advantage of this ignorance. To help people avoid this, a report was posted on eBay - http://reviews.ebay.com/The-best-coin-graders-NGC-ANACS-and-the-worst_W0QQugidZ10000000003785971 - giving a review of coin graders and warning the consumers about the difference.
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 home business in Numismatics is very lucrative but you do need to learn about the above so you do not get ripped off. There are counterfeits out there. Knowledge is power and this subject is not well known. It is not hard to learn what to buy and where but learning it is vital.
Need proof? If you were to Google this yourself, you may find a dealer at http://www.austincoins.com, member of BBB, who sells both bullion and graded coins. A roll of 2010 American Eagle silver dollars was listed in July, 2010, at $459. That works out to $22.95 a coin. The same coin, certified (graded) as MS69 was listed at $29.95 but the MS70 was listed as $125 per coin. See the difference?
Supply and demand plays the biggest part in dealing with collector items. You may have an antique that is very special but needs to be restored. In that case, it may not have the aesthetic appeal to sell. Restored and valued by an antique dealer, you can get a much better price. What you want in a coin is graded and encapsulated by a reputable company. See the illustration at http://www.cherylcurrie.com/wp-content/uploads/2010/03/American-Liberty.jpg).
Numismatics is not an investment activity. A home business in numismatics is just like any other. The product is the best coins of gold and silver offered at a fair price, the owner of the business makes a profit and the whole thing depends on supply and demand. Right now, there is a lot of 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.
The moral of this story is "Be smart, be safe and fill your days with valuable gold and silver." Numismatics, gold and silver coin collecting, can be a very profitable home business if you know where to buy and how to sell.
by: Cheryl Currie
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