When considering a collateral loan, many clients look to their collection of coins. However, the value of that collection is assessed in two very different ways. A one-ounce gold coin is not just a one-ounce gold coin. Is it a modern Gold Eagle (bullion) or a rare, pre-1933 Saint-Gaudens Double Eagle (numismatic)?
Understanding the difference is key to knowing the true loan value of your assets.
Category 1: Bullion Coins
Bullion coins are valued based on their “melt value”—the spot price of the precious metal they contain.
- Examples: American Gold Eagle, Canadian Maple Leaf, South African Krugerrand.
- How They Are Valued: The value is tied directly to the daily “spot price” of gold, silver, or platinum. A one-ounce American Gold Eagle coin is valued as one ounce of gold, plus a very small premium.
- Loan Value: The loan value is straightforward. We determine the total metal weight and offer a high percentage of its current market value. The market is highly liquid and the price is transparent.
Category 2: Numismatic Coins
Numismatic coins are valued as collectibles. Their worth is based not on their metal content, but on their rarity, condition, and historical significance.
- Examples: A 1907 Saint-Gaudens Double Eagle, an 1889-CC Morgan Silver Dollar, a 1794 Flowing Hair Silver Dollar.
- How They Are Valued: This is a specialist’s art. Value is determined by:
- Rarity: How many were minted? How many are known to exist today?
- Condition (Grading): A coin graded “Mint State” (MS) 65 by a service like PCGS or NGC is worth exponentially more than the same coin graded “Very Fine” (VF) 20.
- Provenance: Can its ownership history be traced?
- Demand: Is it a “key date” that many collectors are fighting to add to their sets?
A numismatic coin can be worth 10x, 100x, or even 1,000x its simple melt value. An 1889-CC Morgan Dollar contains less than $20 worth of silver, but in good condition, it can be worth over $100,000.
Which is Better for a Collateral Loan?
Both are excellent assets for a loan, but they are appraised differently.
- Bullion provides a fast, simple, and predictable loan value based on a public market.
- Numismatic Coins require expert appraisal. At a specialist lender like New York Loan Company, our experts can identify the key dates, grades, and rarity of your collection to unlock its true, (and often much higher) collectible value.
Before you get a “loan against gold coin,” know what kind of coin you have. The difference could be thousands, or even hundreds of thousands, of dollars.
