American coinage has expanded greatly over the decades, giving our economy the ability to grow, our society the ability to invest, and hobbyists the ability to collect. Since the end of the 20th century, Americans have had the opportunity to utilize coinage in 3 distinct ways, based off of the three basic groups of American coinage: circulating denominations, bullion coins, and commemoratives.
Thanks to the first basic group, we are able to exchange between one another, using small denominations within our current money system. This group contains Cents, Nickels, Dimes, Quarters, Half Dollars and Dollars, and includes both business strikes (i.e. coins made for circulation) as well as proof issues (i.e. pieces specially prepared for collectors). Usually, these proof issues are extremely affordable, and can give new collectors the ability to gain exposure to numismatics. Many modern proof sets, for instance, sell for $10-$20 each!
The second group, which is where TRADEway’s primary focus for precious metals investing lies, is what gives everyone the chance to put their money into something intrinsically valuable. America’s modern bullion coins include Silver Eagles, Gold Eagles, Platinum Eagles, and many other options provided by both government and private Mints from around the world. To clarify a common misconception, even though the American Silver Eagle carries a face value of $1, it is not classified as a circulating denomination since it was made for bullion purposes. You could technically go the store and purchase something for $1 with a Silver Eagle, but it might actually be worth $20 at the time! The same is true with any government minted bullion coin that holds a face value.
The third group is interesting, because it can be utilized in different ways. Commemorative coins have a lot of collectible value, because they’re struck in limited quantities, using special dyes, and have varying artwork. However, they also hold a high level of metallic value, just as bullion coins, giving them an additional level of investment value. The reason that we don’t advocate purchasing these compared to bullion is because of the considerably higher premium that comes along with all of the special aspects of the coins.
It’s amazing how much variety we have just within our country’s coinage programs. Whether the purpose is for day-to-day purchases, long-term investing as taught in our Safety Step: Protect Your Future course, or collectible purposes, we have a wide list of options that help us in many ways! If you have any questions about any of these specific groups, and how you might utilize them better in your personal investing, just give us a call or send us an email!