Under Australian currency legislation, the face value of a 1oz silver coin is AUD 1. For a 1oz gold coin, it is AUD 100. These nominal amounts are nowhere near the current price of gold and silver per ounce. By taking the coins to a bank or deposit taking institution, the face value is the amount you would be entitled to receive( although there’ s no legal obligation for them to be redeemed by anyone).
But by selling the coin to a bullion dealer or a mint such as The Perth Mint, anyone looking to‘ cash in’ can expect to be paid the‘ melt’ value of gold or silver, an amount akin to the‘ spot’ rate per ounce, minus the buyer’ s commission.
NUMISMATIC PREMIUM
The value of non-circulating coins may also benefit from what is termed a‘ numismatic’ premium. When a limited collectable is launched, the original‘ issue’ price is fixed even if its mintage is thoroughly over-subscribed. Once the coin is sold out at the Mint, prices may skyrocket on the secondary market if enough collectors desire the piece and are prepared to compete on price to secure it.
In plain language, it’ s possible for a low mintage collector coin to achieve at auction considerably more than its‘ issue’ price or‘ melt value’.
This is what happened to The Perth Mint’ s Games Through the Ages 2022 2oz Silver Antiqued Coin. An incredibly intricate piece with a maximum mintage of 2,500, it was released in September 2022 with an issue price of AUD 259. The coin was announced as a sell out at the Mint in October of that same year.
A spectacular non-circulating coin, Games Through the Ages appears to have attracted a numismatic premium on the secondary market.
At the time of writing, we couldn’ t find this coin available on the secondary market for anything less than AUD 380 – and that’ s just one example!
TRUE VALUE
This article argues that uncirculated coins are not a modern-day invention, and that history provides pointers as to how we got here – an era of unprecedented choice in numismatic products.
When it comes to pricing and valuation, we hope to have de-mystified terms including issue price, face value, melt value and numismatic premium, and shown how the market ultimately determines the price of a collectable.
We’ d suggest, however, that the true value of your coins relies on something far more elusive. Each of us is drawn to collecting for personal reasons. We react to beautiful objects emotionally on a scale that’ s hard to quantify.
For that reason, if a coin holds enough meaning for you to purchase it, and you decide it’ s worth treasuring for life, then really, it’ s priceless.
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FEATURE ARTICLE
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