Modern numismatics
Interesting facts about modern numismatics
The term numismatics describes coinage and coin collecting as a hobby. It can be divided into the areas of historical and modern numismatics. Historical numismatics with coins goes back a long way and was already practiced under the Roman Emperor Augustus. It deals with coins from the past and the physical witnesses of our history. Modern numismatics, on the other hand, deals with strictly limited coins that were produced using particularly elaborate minting techniques (e.g. polished plate). The increased potential for value appreciation makes them particularly interesting and attractive for both collectors and investors, and they are becoming increasingly popular alongside classic investment coins such as the Vienna Philharmonic, Maple Leaf or Krugerrand. Modern numismatics impress with their elaborate production, their rarity and the resulting collector's value.
Valuation and appreciation of modern numismatics
The following criteria are relevant for determining the value of numismatic coins and estimating their potential for value appreciation:
- the minting technique
- the mint
- the precious metals used
- the worldwide mintage
- the issue (series or single issue)
- the degree of preservation
The most important minting techniques in numismatics
The minting process for numismatic coins is very complex and makes numismatic coins very special collector's items. The different production methods have a direct influence on the price and value of a numismatic coin. The more elaborately a coin has been minted, the higher the production costs and the premiums on the pure precious metal price. The surface finishes can be divided into the following known minting processes.
Proof Finish (PF)
The proof finish is particularly sought after by collectors and is one of the most elaborate production processes for a coin. Only flawless blanks are used and the surface is highly polished.
High Relief (HR)
While the normal relief of a coin is already an artistic image that stands out from the base of the coin, this is intensified in high relief (HR). The special feature is that the relief protrudes particularly far from the base of the coin, creating depth in the coin image.
Convex Minting
With convex minting, the entire base of the coin is embossed in a convex shape. The convex and concave curvature of the coin creates a special look.
Antique finish
The antique finish minting technique creates a look that is reminiscent of historical coins that have already been in circulation. To create the historical appearance, an artificial patina is applied to the surface.
Bi-metal
As the name suggests, bi-metallic coins consist of two metals and are used in various national currencies due to their resistance to counterfeiting.
Coloriertes Finish
With the colored finish, the artistic image of a coin is enhanced through the targeted use of color. Color is applied to selected elements of the coin using various printing techniques and varnishes.
Brilliant Uncirculated
The term “brilliant uncirculated” refers to bullion, commemorative and special coins that show no signs of damage and are in perfect condition.
First Strikes
First strikes are the first coins struck by the die. As the die shows no signs of use, the first strikes of a coin are particularly detailed.
The importance of mints in numismatics
The mint of the respective numismatic coin is of crucial importance for many collectors. The classic and most popular mints in modern numismatics include the Australian Perth Mint (PM), the Royal Australian Mint (RAM), the British Royal Mint, the Royal Canadian Mint and the South African Mint. But coins from innovative and comparatively young manufacturers such as CIT Coin Invest AG from Liechtenstein are also causing a stir on the global market with new minting processes such as smartminting©. At philoro, we work with renowned manufacturers of numismatic coins from all over the world, so you can always rely on the best quality.
The precious metal used in production
The precious metal used to mint the coin also plays a decisive role in determining its value. Gold coins have a higher monetary value than the identical motif in silver due to the higher precious metal value. They are usually limited to smaller quantities than silver coins and are therefore comparatively more valuable.
The global circulation of collector coins and the resulting demand on the market
Another important factor in determining value is the number of coins minted worldwide. A low mintage combined with a high demand for the numismatic coin usually indicates a high potential for appreciation. However, as the mintage decreases, the premiums on the pure precious metal price also increase, as the development and production costs have to be covered with a smaller number of pieces, which increases the purchase price.
An example: A mintage of 1000 gold coins appears very high at first glance. However, if the coin is a “Gold Krugerrand 1 oz PP”, then this limitation is offset by a very high global demand, as the Krugerrand is the best-known gold coin in the world. Several hundred thousand of these bullion coins are minted and traded internationally every year. In comparison, a mintage of 1000 coins is very small and therefore highly sought after by collectors.
Series or individual edition
Demand is also influenced by whether the coin is part of an ongoing series. This is because the number of collectors increases with each issue of a popular coin series. In this case, the premiums for the previous coins quickly rise, as almost every collector ultimately wants to buy or own a complete coin collection.
Preservation level
Last but not least, the preservation level of the coin is decisive for determining its value. Even the best minting quality and a strictly limited edition with many collectors is of little use to the seller of the coin if it has been damaged. We advise you to leave the numismatic coins in their original packaging and store them in a safe place such as a safe deposit box or precious metal deposit to protect them from scratches and discoloration.
Buy modern numismatics at philoro Austria
The collector's field of modern numismatics is very complex and there are many factors to consider when buying a valuable coin. At philoro Austria, we help you to find the best gold and silver collector coins for you and offer comprehensive advice. Discover our portfolio and get advice over the phone or in person at one of our stores.