Many National Mints (the currency composition departments of the world) generate precious metal government issue coins too.(Funny thing is that that was more than likely all they were supposed to do in first place!)
These gold and silver issue coins are endorsed with a ‘face’ value, very much alike to the change in your pocket, but the exact metal content contained in the coin is valued at more than the ‘face’ worth. For illustration, currently the asking price of an ounce of silver is about $43, The face amount of an American Silver Eagle is $1 (a Silver Eagle is an ounce of silver), ergo, there is a disparity of $42.
So, as the national Government Mints have created the coin with their hallmark (fascia style) we can presume their correctness, and for that reason bullion coins are a wonderful investment if you understand the contrast between fiat currency and real money.
Graded gold and silver coins are those precise coins, yet are graded by a grading organization (ANACS, PCGS, NGC being the 3 most well known). The grading legends are as follows
MS 60-70 Uncirculated
AU 50, 53, 55, 58 About Uncirculated
XF 40, 45 Extremely Fine
VF 20, 25, 30, 35 Very Fine
F 12, 15 Fine
VG 8, 10 Very Good
G 4, 6 Good
AG 3 About Good
FA 2 Fair
PR 1 Poor
The view behind the grading is to arbitrate the collector value of the coin, what degree of precision it is. If a coin is graded and sealed in a sonically secured case it can sell for much higher than the bullion content value.
There are two main uses for classified silver coins. The first is as an investment (think along the refined wine, art line etc) and the other is for their collector/gift value.
I was discussing with a guy recently about why he invests in graded gold and silver coins as opposed to commonplace bullion coins, and I believe I will forever remember his answer. He answered, ‘If you want to purchase a ’62 Corvette, would you desire one that has been parked up and not used, or would you desire one that has been driven around for 50 years?’. There really was no want to answer back.
Numismatic coins (collectable indexed coins) are becoming more and more newsworthy as the price of gold and silver shoot up (possibly something to do with all the money presswork that has been occuring methinks). To become a part of it take a look at Numis Network Australia (also available in the UK, the United States and Canada)