The government issues commemorative coins (CC) to celebrate national events of significant importance. In some instances, the proceedings are occasions like presidential oath-taking and national holidays. Rarely are these things found in regular circulation as they are intended to be sold as valuable souvenirs. In this article, we will examine and discuss five important areas of this subject matter:
- The three different kinds of commemorative coins
- Are these things legal tender?
- Do these items have any value?
- Notable CCs issued in the United States
- Are these things a good investment?
Types of commemorative coinages
These things remain very popular with collectors all over the world. No matter which government mint these items have been issued from, these things fall into these categories:
Common currency
In the United States, this would be the Quarter (25¢), half a dollar (50¢), and Dollar ($1) that are in active circulation. These items tend to be made from common base metals as regular everyday coins.
To find out more about the history of the United States currency, click here for more info.
Non-circulating currencies
Coinages like the Quarter Eagle ($2.50), Half Eagle ($5), Eagle ($10), and the Half Union ($50) are an example of non-circulating currencies. These things are made from precious or base metals. In theory, it could circulate, but they do not because their collective or spot price is a lot higher compared to the legal tender issue value.
Souvenirs and tokens
These items are proof or coinages minted from precious metals like silver or gold. These coinages are not legal tender. Because of their limited numbers, these commemorative coins can be more valuable or sought-after by most collectors.
Are these things legal tender?
In the United States, the meaning of legal tender is usually misunderstood. According to the country’s laws, all coinages made by the government are classed as legal tender, whether these items are in circulation or commemorative coins. In reality, it doesn’t mean they can be accepted by businesses, shops, or banks for cash transactions.
When it comes to legal tender, the country allows coins to be accepted for various payment transacts of debts in the legal court. But only circulating legal tender coinages can be traded and spent with businesses or banks. Shops, building societies, and banks are not obliged by the federal government to accept these types of coinages – and never have been – as they are not considered a circulating legal tender. Some financial institutions do accept them but at their own discretion, but it is highly unlikely.
What is a legal tender? Visit https://www.investopedia.com/terms/l/legal-tender.asp to find out more.
Where can people cash these things?
Most post offices will offer to exchange these coinages for cash if the holder really wants to dispose of their collection this way. But before heading down this road, it is a good idea to get accurate coin valuations. In most instances, the value of these things usually lies in the fact that it is a collector’s item. If it is pretty rare, there is a good chance that it is worth more than its face value.
Non-circulating Com-coins (CC) are especially treasured and sought after by collectors for their rarity, worth and aesthetic appeal. In some cases, selling these items through Private Treaty Sales may be the best possible way to achieve efficient and quick disposals at current market levels.
Do these items have any value?
When we are talking about the worth of these items, there are no fast and hard rules which can be applied. As we mentioned before, these coinage values will be much higher than their real face worth if it is pretty rare. Non-circulating CCs are especially valuable to collectors because of their rarity value and aesthetic appeal. When calculating the worth of these items, experts always consider these factors:
- Current bullion value
- Minting errors
- Mint marks
- Year the CC was minted
- Conditions – Uncirculated, proof issue, etc.
According to experts, CCs which have been minted to celebrate certain events tend to be more popular with both the public and collectors. But everyday CCs can immediately become a collector’s item because of lack of availability through natural wastage.
Items with mint errors can also prove to be an excellent investment. For non-circulating bullion coinage and legal tender, precious metals from which they have been made may exceed their original face worth. The fact that these things are legal tender, as well as exemption from Capital gains taxes only adds more to their value, making these items very attractive to both investors and avid collectors.
A good example is the Trump coins for sale, which are worth at least a thousand dollars. It is made of solid 14K gold and a CC for Ex-President Donald Trump’s inauguration. But it is imperative to remember that not all CCs are made equal. Some are struck from precious metal to a proof finish which is usually sold for more than its bullion worth, even when properly boxed and accompanied by certificates of authenticities.
Are CCs an excellent investment?
Owning a CC can provide a degree of personal satisfaction for collectors. After all, they are an excellent and attractive item to own and display. These items are not always at a good value when we talk about investment. Sometimes, their worth appreciates, but most of the time, they depreciate. Usually, people can purchase them on the second-hand marketplace for less than the cost the government originally sold them.
In comparison, an original numismatic coinage will stand more chance of increasing in worth. It is because rare coins, which are usually made from silver or gold, have innate value as precious metals. Over time, the worth of these things usually goes up.
Numismatic coinages also tend to be worth more if they are enjoying lower mintage rates or are scarce. These things are very valuable in the right circumstances. Rare coinages can cost a lot at the hands of the right owner and buyer. It will cost more if it is made of precious metals like gold, silver, platinum, or palladium. To know more about this industry, it is best to ask experts or collectors to have a better understanding of its value.
