The Value of Coins
How much is this coin. What is face value. Why are there different values. These are different questions that are commonly asked during our interaction with customers. Today, we will explore the values that are associated with coins.
FACE VALUE
The face value, also known as legal value is the value printed on the coin itself. This applies to notes, stamps, etc. A $1 Singapore coin can be used to purchase products that are worth $1 in Singapore. This is the legal value granted by MAS, the issuing authority in Singapore.
Collectible coins also has a face value printed at the obverse of the coin. This is the reason why they are also called legal tender as they are considered a currency that could be used to purchase another product. However, no one with a sane mind would do so as the value of the coin is worth much more than its face value.
INTRINSIC VALUE
Intrinsic value, also known as melt value, metal value or base value is the value of the metal content within the coin. For example, if the coin is made of 1 oz of pure silver, the reference will be the spot price of silver which is currently trading at about 20 SGD per oz currently. Notice that the spot price is already much higher than the face value
Take note that the spot price fluctuates so the intrinsic value of the coin is never constant and will depreciate or appreciate over time based on financial happenings in the world. The intrinsic value of a coin is an important component as it acts as a minimum value that the coin is worth.
NUMISMATIC VALUE
Numismatic value or collector’s value is the value that is above the metal value of a coin. It is the premium that a customer pays for due to the limited mintage and collectibility of the coin. This is the reason why collectible coins cost much more than their metal value. Not all coins are created equal. Collectible coins with the same weight can have very different pricing due to the production cost and demand of the coin. The numismatic value of collectible coins could also appreciate in the long term when the product is sold out. They could be resold by collectors in the secondary market or even placed in auction house.
We have answered the frequently asked question by our customers in this article. Feel free to share this with your friends or help out a new collector. You will never walk alone in your coin collecting Journey.
