Numis Network - A Tale of Two US Silver Eagle Coins

BusinessMarketing & Advertising

  • Author Temitayo Osinubi
  • Published October 9, 2010
  • Word count 1,135

I wanted to take some time out to address a specific misconception that seems to be confusing for a lot of people. I'll be making some finer distinctions between the relationship between bullion coins and numismatic coins in A Tale of Two Silver Eagles. And hopefully I'll convey to you that there is NO BEEF between the two. They do not compete with one another anymore than your home competes with an office building or a strip mall. However, depending on your goals and what you're trying to accomplish owning one type of coin is better than owning the other, just as residential real estate is better for living while commercial real estate is better for conducting business. So it is with bullion coins and numismatic coins.

Because something I've encountered when talking to people who are already familiar with the attributes of owning bullion is that they are so bought in, they're so bullish for bullion that they discount the wealth creation possibilities of owning numismatic coins through Numis Network. I suspect they fear that we bad Numis people are somehow trying to coax them away from bullion, so they just shut down and say "I think bullion is a better investment." Well, me too. I completely understand where they're coming from, from an investment stand point; which is why I wanted to take some time out to provide some further education on the subject.

Take me for example, like many I follow the works of Robert Kiyosaki and his Rich Dad advisers very closely. So when Mike Maloney came out with Rich Dad Adviser book "Guide to Investing in Gold and Silver" I of course bought it and read it cover to cover as I do with all the Rich Dad titles that I own. Mike makes such a strong case for bullion in this book that anyone with a shred of common sense couldn't help but be bullish for bullion after reading it.

So I go out and start actively accumulating gold, but mostly silver bullion months before I ever heard of Numis Network. And had I never heard about Numis Network or decided to join I would still be accumulating bullion, because I still am. I'm officially bullish for bullion. But with anything meaningful that you do you need to ask yourself, what is my goal and what am I trying to accomplish? I mean really, what are you after from owning silver and gold? Is it just another investment; an alternative to the 1000 point a day swings of the stock market? Are you holding it as a hedge for fear of inflation? Or are you trying to create wealth with it?

Now if you're looking for an investment alternative to the volatility of the stock market or you want to hedge against inflation then bullion is just fine for that. You don't need numismatic coins or Numis Network if that is you goal. However, if your objective is to create wealth and long term financial freedom from owning silver and gold then numismatic coins through Numis Network is the strategy you want to employ and there's several reason why.

First being that ordinary bullion coins will always only be worth around or about the spot price of the value of their metal content; while graded numismatic coins have a collector's value that is separate and distinct apart from the value of their metal content; a DOUBLE VALUE if you will. So take these two 1 oz American Silver Eagle coins. Each tells a very different tale in terms of wealth creation. This bullion coin was minted back in 1990 and it's only worth the spot price of an ounce of silver, $18 and some change as of today. While this numismatic coin is worth $125, more than five times the spot price of an ounce of silver as of today.

Now here's where The Tale of Two Silver Eagles gets dramatic. Had this 1990 bullion coin been an MS70 numismatic coin like this one, it would have a current retail value of $4,199. That's right; $4200 for a 1990 MS70 American Silver Eagle numismatic coin. Don't believe me? Go to silvertowne.com and see for yourself. But as it stands now as a bullion coin its worth less than $18.

There's a few reasons for such a drastic price discrepancy between the two 1990 silver eagles. The first being that' bullion coins are commodities while numismatic coins are collectibles; or referring back to my original analogy, residential real estate, commercial real estate, your home, the Empire State building. So this 2010 numismatic coin's status as a collectible not only makes it 5 times more valuable than the spot price of an ounce of silver, but also makes it 1990 MS70 counterpart over $4000 more valuable. So you tell me, in terms of wealth creation, which coin would you rather own, the $18 bullion coin or the $4,200 numismatic coin; both of which is made out of the same silver and was minted in the same year?

Yeah. That being said, you will find that the price for a particular numismatic coin will vary from vendor to vendor, as with anything. Just as an item might be more or less expensive at Target vs Wal-Mart. But one thing that won't vary from vendor to vendor is that numismatic coins hold their value better than bullion and they are exponentially more valuable from day on.

One of the major factors is that bullion coins more or less come naked. It has very little protecting it. I mean you can buy vinyl sleeves, or hard acrylic containers, but nothing preventing you from getting your bare hand on the coin. This is very, VERY bad because pure silver and gold is very malleable and can dent easily. That's why at the Olympics the tradition is always to bite your metal. Because if it's real gold or silver it should leave a tooth-mark after you bite into it. So if you were to drop this while showing it to somebody, or do something stupid like I did and flip it in the air and let it hit the ground, it would leave a mark which would make it less valuable.

And the list goes on and on, but hopefully I've imparted to you that there's nothing wrong with owning both bullion and numismatic coins. There is no beef between the two. As you can see I own both, but depending on your ultimate goal, one's better than the other. And in terms of wealth creation and ultimately financial freedom, Numis Network is the way to go for a barrage of reasons, only a few of which I have stated here. For the rest of the reasons go to http://Get.Assets-Flow-Cash.com.

I hope this helped shed some light on the subject. Take it easy and I'll see you next time.

Temitayo Osinubi is a self-proclaimed Robert Kiyosaki fanatic who embraces the Rich Dad philosophy of increasing your financial IQ. As a numismatist and precious metals aficionado of Silver and Gold he is passionate about teaching others about collecting Silver & Gold coins to create wealth. Come and learn how to create residual income a.k.a CASH FLOW from the hard assets of rare numismatic coins.

His web site http://Get.Assets-Flow-Cash.com

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