Are proof coins a good investment? Well, that’s a complicated question.
First, let’s examine proof coins and why they’re valuable.
Then we’ll examine if all proof coins are equally valuable or if certain types might be better investments than others.
Finally, we’ll explore whether or not you should buy proof coins for your collection—and if so, how best to do so!
Are Proof Coins a Good Investment?
There are many reasons why proof coins are a good investment.
First, proof coins are rare and hard to find, so they have a high value.
They also have a low risk of depreciation because they are made of precious metals like gold, silver, and platinum.
Proof coins can be worth thousands of dollars each year, depending on their rarity and demand in the market.
One of the most valuable proof coins is the American Eagle Gold Coin, produced by the U.S. Mint from 1986 – 1988 using 1-ounce gold coins containing 99% pure gold content (22 karats).
The coin features an eagle on one side and Lady Liberty on another, with its value printed on it ($50).
This coin is considered one of America’s finest examples because it has been stamped with quality assurance marks, such as mint marks indicating where it came from.
Eagles indicate that this type was authorized by law.
What Makes Proof Coins Valuable?
Proof coins are created with a higher quality of metal and have a lower mintage than bullion coins.
This is because they are made to be collectible, not just for their intrinsic value.
However, because they’re minted to such high standards, proof coins tend to have a more excellent perceived value than other types of coinage and, therefore, may sell for more at auction or on the secondary market.
A proof coin is struck multiple times using specially polished dies, resulting in profound and sharp details on both sides of the coin (versus just one side).
After striking each coin once from its die pair, it undergoes a polishing process called “blanking off,” where excess metal is removed from both sides so that only exceptionally well-struck pieces remain.
These extra steps take much longer than for other types of coinage as well.
This increase the cost per piece substantially due to labor costs associated with them being done manually rather than by machine.
It is being cast out by hand firstly before getting stamped into shape afterward through pressing down hard against them under pressure several times.
Are All Proof Coins Valuable?
Most proof coins are valuable because they have a high collectible value.
Several things make a coin more valuable than others:
- Rarity – This can mean how many were minted and lost or stolen.
- The rare the coin is, the greater its value will be.
- Beauty – A beautiful design will always make a coin more desirable to collectors and investors.
- Historical significance – Coins that honor famous figures or events can bring in higher bids from collectors who want to own pieces that have been touched by history (such as Kennedy half-dollar coins).
Is it Worth it to Invest in Proof Coins?
The value of a proof coin depends on the metal content, condition, and rarity.
For example, if you have a 1924 U.S. gold eagle-graded Mint State 65 with the original box and certificate (PCGS #868), it will be worth much more than an ungraded coin in a similar condition.
To determine whether or not your proof coins are a good investment, you can use our coin price guide to find out what they’re worth in today’s market.
However, it’s important to remember that prices can vary dramatically depending on whether or not you sell them privately or through an auction house like Sotheby’s or Heritage Auctions.*
Proof coins are also an excellent way to start investing in precious metals because they’re more affordable than bullion coins but still provide the same benefits for diversification purposes.
In addition to this benefit and others discussed below (*footnote: proof coins are generally easier to sell than bullion), there are several reasons why investors may want to consider adding these specialized types of collectibles into their portfolios:
Before you go…
Proof coins are valuable because they are rare. But is it worth it to invest in them? That depends on your goals and how much time and money you want to spend. If you want to get into coin collecting for fun or as a hobby, go ahead! However, if you hope your investment will pay off in the future, remember that these coins can be expensive today but may not be worth anything tomorrow.
Check out my next article: “2018 US Mint Silver Reverse Proof Set – Do You Need This in Your Collection?“
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