Which is better?

"What types of coins should I buy:  Bullion or Collectibles?"  This topic never seems to get old due to new buyers constantly coming into the precious metals market daily.  Both bullion and numismatics have their strengths & weaknesses-which is vital to know before making a purchase.  You will need to understand which "hat" to wear when making the final decision of either becoming an "investor" or "collector".

Bullion & Collectible

 To be more specific, let’s examine the differences and similarities of Bullion and Numismatic coins.  Bullion is the investor’s choice for the "investor market". When investing in Bullion, the primary focus is always on the value of the metal-nothing more, nothing less.  Unlike Numismatic coins, Bullion is more desirable to barter and trade with it because of the actual price of the metal.  It also allows the investor to protect their portfolio against a sudden drop in stocks, bonds, and/or paper currency values.  This is a great way to ease doubts of losing assets.

On the other hand, Numismatic coins are for the "collectible market".  Not only is value placed on the metal, but also on the rarity and condition of the coin. Most of these coins have been designed for special occasions or events such as the Chinese New Year or the 100th Anniversary of the Titanic.  The mintage of these coins are typically low, which can fetch a pretty high price due to low supply-high demand (depending on the coin).  Generally, numismatic coins are not the ideal choice to used for bartering or trade, but can easily build wealth over time. If you want or need to sell your coins, you can either take them to a specialty coin shop or sell at an online auction.

Having  Bullion and Numismatic is not a “bad thing”.  Remember: one can be collected as "intrinsic art" which could build wealth over time AND the other to protect against paper assets.  Simply determine your goals and “why” you plan on buying precious metals.

I highly recommend that you get educated on these types of coins before you make your purchase.  Personally, I suggest getting both: bullion (for business) and numismatic (for fun)!