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<p>[QUOTE=&quot;akhosravi, post: 1549620, member: 41040&quot;]I&#039;m a complete novice on coins, but nonetheless I&#039;ve been on a spree buying silver coinage (and a few Palladium) coins over the last week. I&#039;ve got a happy trigger finger I guess (at least until the wife finds out <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />). I got to thinking about the relationship between numismatic and melt values. I&#039;m wondering if the value of a bullion coin over spot is &quot;fixed&quot; (I.E. melt value + standard value for coin) or if it can go up or down in some sort of relationship with spot price. Sorry, I like to over analyze things <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>For an example, lets say we have a random 1 oz gold coin that right now is worth $200 over spot.</p><p><br /></p><p>$1800 + 200 = $2000 current value.</p><p><br /></p><p>1) If the price of gold drops by 50% then, with a fixed numismatic value the coin would be worth $900 + $200 = $1100</p><p><br /></p><p>Or</p><p><br /></p><p>2) If the price of gold drops by 50% then, with a relative numismatic value (perhaps we can say desire to own coinage goes down with the price) the numismatic value also drops by 50% yielding a value of $900 + $100 = $1000</p><p><br /></p><p>I guess what I&#039;m asking is if numismatic value acts as a buffer (reduce beta of investment) or as leverage (increases beta). I&#039;d just like to better understand the risks before I spend anything more on coins other than brand new mintage as close to spot as possible.[/QUOTE]</p><p><br /></p>

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